There’s little doubt that nutrition needs pose critical challenges around the world. And consequently, huge opportunities for those who can address them. Our team has thrown the spotlight on ten macro trends and four key areas that will shape the market in 2024. We also highlight strategies key players are adopting to succeed in the coming 12 months.
To develop trust and credibility, transparency and ongoing communication will be critical. Especially around four areas we predict to be close to consumers’ hearts:
This will reshape consumer behaviors, especially in impoverished areas. Increased health and wellness awareness will drive demand for tailored nutritional solutions and proactive approaches to disease prevention. Consequently, consumers will want products that enhance the quality of life and address aging-related concerns.
The rise of processed food consumption has triggered nutrient deficiencies, notably in developed countries. Key vitamin deficiencies, coupled with a surge in (pre)diabetes and gastrointestinal disorders, will drive the need for preventive healthcare.
Millennials’ preference for customized health and wellness solutions is reshaping the market. Despite privacy concerns, the demand for personalized products is on the rise. And will continue in 2024, with consumers increasingly expecting companies to understand their needs.
This is in line with the continuing desire for consumers to seek deeper connections with their food and the communities they endorse. Natural products, clean labels, and traceability will be key. And more so than ever, trust will be established through transparency across:
More so than ever, consumers will turn to digital channels for health information. Online education, self-diagnosis, social media, and influencers are set to further drive consumer purchasing decisions.
The flexitarian approach to dietary choices, blending plant-based and responsibly sourced animal-based products, is gaining traction. 2024 is set to see consumers make decisions that prioritize positive nutrition and sustainability.
The governmental and organizational push for sugar reduction will increase label scrutinizing. Consumers are going to opt for products that offer ‘natural flavor’ and ‘no added sugar.
Concerns regarding salt persist and will do so in 2024. While it is widely acknowledged that levels need to be reduced, consumers equally want taste quality preserved.
A holistic perspective encompasses overall well-being, body performance, sustained energy, and emotional contentment. 2024 is set to see this mindset grow further in popularity.
More and more consumers will try unique flavors, textures, and colors. An experimentation with authentic recipes is seen as offering both pleasure and wellness.
This in part is fueled by a fascinating reality we have uncovered. And that is, the lines defining nutrition in the industry are unclear. There is no universal definition.
By adopting an ‘outside-in’ approach we can understand how players are positioned. This enables us to craft a comprehensive perspective of the nutrition industry. And what we’ve discovered is that the market has two distinct archetypes:
These navigate the entire value chain, offering a comprehensive array of products and services. They are further honing their expertise through targeted acquisitions and reinforcing core business while shedding non-essential assets.
Notable instances of this include the Dsm-Firmenich merger of equals and IFF’s acquisition of Dupont’s Nutrition & Biosciences business. These moves position them as essential players in the nutrition landscape.
These specialists deliver tailored solutions by focusing expertise on specific ingredients, applications, or services. In 2024 they will either expand into adjacent areas or transform their business models. Indeed, this has already started. Symrise’s acquisition of a leading generative AI player exemplifies a strategic move towards AI-powered nutrient optimization.
Similarly, Novozymes has undergone a significant portfolio repositioning. They have renamed their enzymes business as “planetary health” while converging the proteins and microbials from Chr Hansen and put themselves as a comprehensive human health & nutrition player.
The winners navigate the macro trends and address key issues. They will be tuned into trends, strategically repositioning to meet evolving market demands. If your organization is pinpointing opportunities to establish and sustain competitive differentiation. Or you need to refine your market positioning in response to these trends. Our teams can help you chart a course for success.
Anuj Dhariwalis is an Independent Consultant. He is focusing on helping Agribusiness and Food clients overcome a variety of complex business challenges. He brings experience from Bain & Company, Bayer AG, and Novozymes, and holds B.Tech, M.Tech from IIT, and a PhD in Industrial Biotechnology.
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