Retailers Appease Consumers with Wellness Brands

Consumer demand for nutritious products has some retailers focused on product ingredients and nutritional profiles.

With consumers’ growing demands for nutritious products, some retailers have become less focused on recognizable brand names and more driven by a product’s ingredient and nutrition profiles. According to a Reuters report, more mass-market retailers want their stores to offer smaller brands that consumers perceive as better-for-you in order to attract shoppers while retailers combat challenges brought by the increasing popularity of natural food and specialty chains.

For example, one national retailer is bringing in natural, organic and sustainable brands with their “Made to Matter — Handpicked by Target” program. Since 2014, Target has been featuring wholesome, purpose-driven brands. In 2016, the company raised the bar. In order to earn the “Made to Matter” distinction, products must meet one or more of Target’s five defined criteria: reduced waste and packaging, closed loops systems, made without additives and harsh chemicals, reduced sugar, and/or dietary and allergen restrictions.

With the number of smaller, wellness-focused food manufacturers growing, along with some major food companies changing some of their products’ ingredient and nutrition profiles and also purchasing niche wellness brands, competition may stiffen. According to a 2016 Nielsen survey, “two-thirds of global respondents (67 percent) say they actively seek products with healthful ingredients…and 45 percent believe there are not enough healthful options available to buy.” Thus, the demand for wellness products will certainly remain.

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[1] The Neilsen Company. “Think Smaller for Big Growth. How to Thrive in the New Retail Landscape.” June 2017. Accessed on 24 Jan 2017. Retrieved from http://www.nielsen.com/content/dam/nielsenglobal/de/docs/Nielsen%20Global%20Retail%20Growth%20Strategies%20Report_DIGITAL.pdf

[1] Menayang, Adi. “Bitsy’s Brainfood: ‘Retailers are less reluctant to feature brands that may not yet be household names.’” 14 Jul 2016. William Reed Business Media Ltd. Accessed on 24 Jan 2017. Retrieved from http://www.foodnavigator-usa.com/Trends/Sodium-reduction/Bitsy-s-Brainfood-conventional-retailers-are-embracing-food-startups

[1] Athavaley, Anjali. “Small food makers on fast path to U.S. store shelves, threatening big producers.” 21 May 2015. Reuters U.S. Accessed on 24 Jan 2017. Retrieved from  http://www.reuters.com/article/us-usa-food-upstarts-insight-idUSKBN0O60FN20150521

[1] Target Brands, Inc. “Amping Up Innovation: 20 Purpose-Driven Brands Rise to the Challenge of New Made to Matter 2016 Standards.” 9 Mar 2016. A Bullseye View. Accessed on 24 Jan 2017. Retrieved from https://corporate.target.com/article/2016/03/made-to-matter-2016

[1] Target Brands, Inc.

[1] Target Brands, Inc.

[1] Athavaley, Anjali.

[1] The Neilsen Company.

[1] The Neilsen Company.