This is the sixth blog from FMI's nonfoods in grocery stores series. We share compelling insights from our Power of Nonfoods research among shoppers and industry perspectives to explore nonfoods' role in the food retailing industry.
By: Tom Duffy, Senior Advisor, Industry Relations, FMI
When it comes to the health and well-being market, grocery stores remain at the forefront. After all, they sell food—a hugely important aspect of any healthy lifestyle.
But there's much more to this space when you consider nonfoods, including over-the-counter medications, mouth care/oral health products, and nutrition and weight loss products.
According to FMI's Power of Nonfoods report, grocers sell more than $24 billion in nonfood products that support their shoppers' health and well-being. Playing a broad role in these aspects of a consumer's life presents a huge opportunity—one that some important players in this space successfully embrace.
Recently I spoke with Aileen Stocks, President of Vitamins, Minerals, and Herbal Supplements at Nestlé Health Science, about the health and well-being space. She offered some compelling insights on how the company stays on point.
"We provide customers with a seamless omnichannel experience throughout their wellness journey," said Stocks. "We recognize the increasing importance of digital channels and are committed to meeting our consumers' needs across various touchpoints."
For a deeper dive into this dynamic market, Stocks offered insights that support the data in FMI's Power of Nonfoods report.
Be mindful of macro-trends:
"At Nestlé Health Science, we understand that macro-economic trends, such as inflation, influence consumer behavior. While this may present difficult decisions for consumers, we see it as an opportunity to provide them with valuable solutions that align with their health and wellness priorities.
"We are committed to developing products that not only support physical health but also address the growing demand for holistic wellness, simultaneously encompassing physical, mental, emotional, and social health and appearance. By staying attuned to evolving consumer needs, we can continue to innovate and offer products and strategies that cater to their overall well-being."
Remain on top of shifting demand:
"Historically, the health and well-being market has been relatively stable. However, with the advent of new trends and advancements in science, we have observed shifts in consumer demand and preferences. For example, the rise of social media platforms like TikTok has influenced consumer behavior, with more individuals being exposed to different and new trends promoted on these platforms.
"We continue to embrace these trends including the rise of popular ingredients, such as beetroot and magnesium. We are continuing to innovate in these areas of interest to meet evolving consumer preferences."
Tap into technology:
"With advancements in technology, we can leverage health data to customize supplement recommendations to best address nutrition gaps or health goals and support healthy aging.
"Additionally, technology is transforming the way consumers interact with brands, with digital platforms and subscription services tailored to an individual's personal health and wellness becoming more prevalent and engrained in daily life."
We recognize the increasing importance of digital channels and are committed to meeting our consumers' needs across various touchpoints.
Stay relevant and engage customers in multiple ways:
"We employ various strategies to stay relevant in the health and well-being market and effectively engage customers. We closely monitor consumer trends and conduct research to gain insights into their needs and preferences. This allows us to develop innovative products and communications that resonate with our target audience. Additionally, we actively test new ideas and leverage consumer feedback to continuously improve our offerings.
"We are fully dedicated to our purpose of empowering healthier lives. We know that with this we must always have a deep sense of empathy as it relates to our business—in other words, making sure we are looking at our innovation through the eyes of our consumer, understanding that what we create makes an impact in their day-to-day lives."
Beyond Aisles: Unlocking Nonfoods Potential
Nonfood leaders are gathering May 14-16, 2024 for an interactive and immersive event focused on increasing nonfoods category performance at the grocery store. We will tap into insights and develop the innovative mindset needed to compete and stay relevant in this dynamic marketplace.