5 things that every F&B business needs to know about the growing wellness industry
You don’t need to look very far to realise that there is a growing demand for wellness worldwide. Whether it be the at-home fitness boom. the integration of corporate wellness programs within most corporations or talk of nutrition, personal growth and holistic practices taking over social media.
Ignoring this growing demand would be a mistake, but don’t just take my word for it. Below you’ll find the 5 things that every single F&B business needs to know about the growing wellness industry.
1. Wellness isn’t just a trend…
A recent report from the Global Wellness Institute (GWI) states that the global wellness industry stands at 4.4$ trillion in 2020. The industry is split into eleven sectors each with their own value and growth, but one thing is for sure: the industry as a whole is not only a driving force in today’s economy, but it is also rapidly growing without signs of slowing down.
Although the COVID-19 pandemic negatively impacted the growth of the wellness industry with the wellness tourism, thermal springs and spa sectors having taken the biggest hit, the GWI estimates that the industry will pick back up with a 10% growth rate to reach $7 trillion by 2025.
Interestingly enough, the healthy eating and nutrition sector was one of the few sectors in the industry to maintain growth during the pandemic, highlighting a consistent increase in consumer spending on better-for-you foods.
A recent survey conducted by McKinsey concluded that consumers, in all markets studied, have created significant changes in their lives, prioritizing wellness over the past two to three years. Studies point to the fact that all aspects of wellbeing will become increasingly important in a post-pandemic world.
All this to say that viewing the growth of the wellness industry as a fad would be a mistake. The GWI suggests that the four drivers of the current wellness industry include: an ageing population, environmental concerns, failing healthcare systems and value-systems shifting towards wellness. All these key drivers show little sign of slowing down anytime soon, emphasizing the fact that this “trend” is less of a trend and more a new way of life that all F&B brands and outlets today must welcome and integrate.
2. Wellness is going mainstream
KFC introduces meatless chicken. Doctors are prescribing group therapy and mindfulness. The World Economic Forum expressed it’s focus on mental health. Athleisure brand GymShark reached unicorn status in 2020.
What used to be an industry driven by extreme athletes and vegan activists is now being adopted by anyone and everyone and many wellness-focused business are seeing incredible success. Mainstream brands are incorporating wellness-focused offerings, whether this be a primary area of focus for them or not. Moreover, even the average consumer is looking for brands that can cater to their growing focus on wellbeing.
When I was studying at EHL Hospitality Business School from 2014 - 2018 I struggled to find anything plant-based on the school menu. As a vegan I had to specifically ask if the vegetable dishes contained butter, most of which did - simply because this is how Swiss cuisine was done. The university now caters to many different dietary requirements and the establishment - a driving force in training the hospitality leaders of tomorrow - even recently published an article explaining why restaurants need to offer vegan food on their menu.
A study released by NPG Group suggests 90% of those who regularly consume plant-based products are meat eaters. This suggests that the previous divide between meat-eaters and vegetarians has merged into one bracket of more health and environmentally conscious consumers. This is a key aspect to note for the F&B industry in particular since this suggests that even if a venue or brand is not specifically catered to plant-based or health-conscious customers, the average customer will still be seeking plant-based and healthier alternatives. In order to be able to satisfy their demands, this is an area that must be taken into consideration.
3. Wellness is taking over all generations
The vegan and vegetarian movement is driven mostly by the younger generation - with nearly 30% of young Americans either already not eating meat or expressing a willingness to completely cut meat out of their diet, and 35% of Gen Z in the UK aiming to be meat-free.
Although young people are driving the movement, as the Boomer generation ages, more and more of them are adopting plant-based diets as a way of combating symptoms of ageing. With the health benefits of plant-based diets becoming increasingly recognised within Western Medicine, doctors are now recommending older populations to reduce their meat and dairy intake to reduce inflammation, cholesterol and other ailments that cause aches and pains.
Today’s younger generations are those setting the stage for the future and will be the driving force behind consumer demand. With the demand for healthier food alternatives growing in all demographics, today’s food industry must be prepared to jump on board.
4. It’s not just about healthy food…it’s so much more than that
A recent survey conducted by Impossible Foods, one of the industry’s leading plant-based meat producers, found that the younger generations are taking more personal responsibility when it comes to climate change. The survey showed that 73% of Gen Z youths believe that they can make some, if not a big difference through their personal choices. This shows a radical shift towards using personal choice and lifestyle as a tool to make an impact.
More and more consumers are seeking complete transparency on what’s in their food. According to a Cowen and Company Consumer Tracker Survey, Gen Z and Millennials are 4.1% more likely to view transparency as a critical decision making factor in where they choose to eat.
Euromonitor’s 2021 trends report suggested that brands that openly express their values around building a more sustainable and equitable world not only gained significant competitive advantage but were able to create the trust that today’s consumers seek when they make food choices.
One thing we know for sure is that whether we consider the environment, social issues or health, today’s consumers are looking beyond the food; they are seeking to purchase from brands who share their values and are doing their part to create a healthier, happier and more sustainable world.
5. Consumers can see through the health-washing
As nutritional information becomes more and more readily available online, consumers today are more knowledgeable than ever before.
Gone are the days where consumers would fall for misleading health claims such as Cheerios reducing cholesterol by 4 percent in six weeks. Not only have most of such claims been blocked by the FDA, but today’s consumers know better.
With an increased education around reading food labels and ingredient lists, in part thanks to many free resources online, health-washing is a no-no. Today’s consumers are skeptical and informed.
Although the F&B industry needs to step up and hop on the wellness train, whacking a “high-fibre” label on a product or adding the word “healthy” to a menu does not suffice. Without proper research and expert advice, their attempts to join this booming industry risks falling flat.
Unsure of how to develop new offerings that will respond to this growing demand for wellness within your business? Victoria Sardain is a Wellness Consultant who specializes in finding innovative ways to integrate wellness into your hospitality business. Through her hospitality management studies combined with her passion for wellness, she has created a unique niche as an expert in wellness within hospitality.
Fill out the form below to set up a consultation call and find out how integrating new wellness-focused initiatives within your business can allow you to tap into this soon-to-be 7 trillion dollar industry.
Victoria Sardain is a Wellness Consultant, supporting hospitality businesses to introduce innovative wellness offerings and create a culture of wellness within their brand.
Through consultancy projects, coaching, workshops and talks she supports your business to find the most seamless way to integrate wellness into your business, brand and team.