The challenge for brands is to become the new source of trust. The digital boom has brought thousands of new options, formats, and variations. Now, we are entering the era of idolatry again, where we will redefine both how we buy and the brands we trust.
Coca-Cola will not be the same in 10 years, but now, the kombucha brand that emerged months ago and is gaining the spotlight and people's attention will have much more market share than it does today.
Well, understanding the significant role (which, by the way, is impossible to measure in two paragraphs) of the wellness industry, let's now delve deep into the key insights of our topic today.
HOW BIG IS THE WELLNESS INDUSTRY?
The GWI (Global Wellness Industry) is projecting a 8.6% average annual growth, with the wellness economy reaching $8.5T in 2027. Also, GWI represents 5.6% of global economic output in 2022 so if you're thinking about giving up from your business, this is what your competitors want you to do as they know that there are heaps of opportunitites there.
Regarding the big sharks: The major players operating in the health and wellness market are Amway Corp., Bayer AG, Danone, David Lloyd Leisure Ltd., Fitness First, Herbalife Nutrition Ltd., Holland & Barrett Retail Limited, L'Oréal SA, Nestlé SA, Procter & Gamble, Unilever Plc, and Vitabiotics Ltd.
According to our deep dive in the industry, the North America region will lead the global health and wellness market over the forecast period 2023 to 2032.
WHAT ARE THE TRENDING NICHES IN THE WELLNESS INDUSTRY?
Digital wellness – as people adapt to spending more time at home, there’s increased demand for digital wellness offerings that they can enjoy without leaving the house.
Health & immunity – consumers are prioritising their health more than ever which means greater receptiveness to products and services that support this (particularly those associated with boosting the immune system).
Biohacking – on a related note, biohacking is rapidly gaining popularity with efforts to delay aging and prevent disease both key themes.
Essential oils – in terms of wellness industry products, essential oils have seen a surge in popularity that doesn’t look set to slow.
Beauty products reflecting diets – we’re seeing a huge increase in beauty products being marketed as vegan and gluten-free with mainstream brands like Garnier highlighting this in shampoo adverts.
Meditation – is no longer restricted to yoga classes or considered ‘woo-woo’, meditation’s health benefits are now being widely recognised which is boosting its popularity.
Wellness tourism – the wellness tourism market is projected to reach $915 billion in 2023 with leading brands like Equinox launching getaway concepts.
Protein powders widening their appeal – when it comes to the health and wellness food industry, protein powders have always been big business. But they’re now developing products targeting women and vegan exercisers specifically instead of their traditional body-building market.
CUSTOMER INSIGHTS: HOW TO ESTABLISH DEEPER CONNECTIONS WITH YOUR AUDIENCE?
Reinforce Positive New Beliefs:
Consumer beliefs drive behavior, and the COVID-19 crisis has changed many beliefs. Companies can leverage peak moments to shape and reinforce positive shifts in consumer behavior. For example, grocers can enhance online experiences with surprises like handwritten notes, creating lasting connections.
Shape Emerging Habits with New Offerings:
Unilever's success with immune-boosting beverages highlights the importance of aligning products with emerging health concerns. Companies, like Kraft Heinz, are prioritizing offerings that make home cooking enjoyable and easy, responding to the shift in consumer habits towards cooking at home.
Sustain New Habits Using Contextual Cues:
To turn behaviors into habits, companies should identify and reinforce contextual cues that drive desired actions. For instance, keeping hand sanitizers by entryways has become a habit. Packaging and marketing that supports this behavior can help sustain the habit and encourage cleanliness.
Align Messages to Consumer Mindsets:
Recent events have heightened consumer emotions, influencing long-term preferences. Companies should align their brand communications with consumer sentiment. Genuine efforts, like Olaplex's donation program, resonate with consumers, while performative actions are rejected. Testing messages among diverse consumers is crucial for authenticity.
Analyse Consumer Beliefs and Behaviors at a Granular Level:
Monitoring product sales isn't enough; companies must delve into changed consumer beliefs and behaviors. Qualitative research, digital data gathering, and granular analysis of footfall data are essential tools. Companies should closely track the evolving consumer journey, adjusting product offerings and messages regularly to stay aligned with changing behaviors.
CONCLUSION: Key considerations for curating a better, healthier future
Challenge your current definition of health and wellness – it’s bigger and more encompassing than you think.
The landscape is changing fast. Stay ahead by keeping up on the latest search and sought-after health, wellness, and well-being attributes among consumers.
As health and wellness tools and resources become more digitised, personalisation will be a critical component to success.
Make it easy. In this highly competitive market, consumers are quick to seek alternatives, especially if finding what they want is hard.
Innovation is ripe for opportunity and a key discipline to bring insights to life. While there is a strong appetite for altruistic innovation, companies must remember that products must still fulfill and meet a core need and the rules of efficacy still apply.
In an environment of differentiated price elasticity, pricing analytics will be critically important. Consumers will continue to “vote with their wallets” and knowing their willingness to pay will be key.
Embody trust via complete transparency – delivering on promises made on all aspects of your business will be key to building trust.
Technology will continue to put the consumer in the driver’s seat of their own health journey. Embrace the changes ahead to stay lock step with the consumer tide.