Consumer Wellness Shift Adds Up to $600B-Plus Food & Beverage Opportunity
CHICAGO — Today, one-third of food and beverage spending is focused on health-driven decisions.
According to new research from Circana, health-focused consumers account for $638 billion in total food and beverage spending, split between $363 billion in retail and $275 billion in foodservice. This wellness-focused spending reflects a significant shift toward prioritizing physical, mental, and social well-being in food and beverage purchases.
"Consumers are looking for wellness across every aspect of their lives, and food and beverages are playing a critical role in this transformation," said Sally Lyons Wyatt, global executive vice president and chief advisor at Circana. "Our Complete Food & Beverage research shows that while the retail sector is excelling at meeting these needs, there is significant opportunity for foodservice providers to innovate and offer wellness-centered dining experiences."
[Read more: Generational Differences Define the Future of Dinner]
Wellness trends are shaping consumer behavior in food and beverage across three key areas:
- Physical wellness takes center stage: Consumers are increasingly seeking fresh, nutrient-dense foods that promote physical health. Retailers are responding by offering a variety of minimally processed products high in protein, fiber and natural ingredients. In contrast, wellness influences only 11% of foodservice meals, as dining out remains more focused on convenience and indulgence. However, certain categories like seafood, tea and juice are gaining traction among health-focused diners at foodservice operators.
- Mental health drives demand for functional foods: Thirty-five percent of consumers view food as an important tool for managing stress and improving mood, driving increased interest in functional foods and beverages that support mental health. While retailers are capitalizing on this trend with expanded assortments of relaxation teas and mood-enhancing snacks, both retail and foodservice are providing treat-based indulgences, such as bakery items and candy, which are often go-to items for emotional well-being.
- Social engagement through "eatertainment": The rising trend of "eatertainment" is changing the way consumers experience dining, blending food with social interaction. This is particularly strong in foodservice, where chains are adapting to meet consumer demand for experiential dining. Retailers are also supporting social wellness by hosting community-driven events, helping consumers integrate physical health with social engagement.
As consumer demand for wellness grows, retailers and foodservice providers alike have an opportunity to innovate by expanding their offerings to better align with physical, mental and social well-being, Circana said. Retailers can continue to lead the charge with offerings across the food and beverage aisles that offer nutrient-dense options, while foodservice providers can capitalize on the growing demand for healthier dining experiences by offering functional foods and beverages alongside indulgent choices.
The key for all players is to provide accessible, transparent and affordable solutions that meet consumers’ evolving needs for harmonized well-being.
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Chicago-based Circana is a leading advisor on the complexity of consumer behavior.
