What makes a health food brand click?

There is an avalanche of?'convenience health food' brands?in the market. The health food market in India has opened up, and is exploding in fact due to multiple factors (I wrote about this in my earlier FoodThink column https://t.ly/pJj7A).

Today there is a clear "discernible shift" happening in the market mindset towards health alertness, as consumers are increasingly asking for foods that align with their nutritional needs. (Of course, convenience and taste are non-negotiable still, but more about that later in the column.)

Emerging categories

New categories of products like gluten/fat/sugar-free, non-GMO, free from artificial additives/colourings/sweeteners are unfolding, and supermarket shelves are increasingly showcasing foods like non-fried noodles, millet-based chips, low-calorie beverages, functional drinks, healthy snacks, nondairy desserts...

The consumer is demanding, and the industry is delivering one tailor-made product after another.?

Are they ‘all’ succeeding??

No, clearly not. So what are these brands getting?right and where could they be going wrong… let’s weigh in what’s working and also some of the gaps and the challenges.

K S Narayanan, a highly accomplished senior industry veteran, board member and advisor to new age startups feels that today there is a plethora of messaging on health, lifestyle diseases and diet-related topics that a consumer encounters mainly through various social media platforms' He is right. There is just so much information floating that it ends up confusing the consumer utterly.

“Also unfortunately no one is trying to address the topic in its entirety (or maybe one does not have the long attention span that is required), and as a result, several bite-sized diet-specific messaging goes out that address specific issues,” he says. As a result, consumers look for:?

• Absence or reduction of certain ingredients like fat, sugar, salt, chemical preservatives etc.
• Addition of so-called good ingredients like millet, whole grains, fruits and vegetables, protein, fibres, probiotics and more.
• Specific products addressing dietary needs like gluten-free, lactose-free, vegan, low calorie and so on.

Basis these specific requirements many brands have joined the bandwagon by offering products addressing the stated/perceived needs of their respective target consumers. “Here depending on the overall acceptability and the price value equation some brands have been more successful than others,” Mr Narayanan opines.?

So what are the challenges??

There are many actually! Meeting specific dietary needs, matching demand for high quality, delivering price affordability, adhering to transparency in communication, and (biggest of all) the expectation to deliver these (and more) consistently.?This is a tall order, and possibly the reason why we see many new launches faltering and folding.

Mr Narayanan points out two important factors that matter.

First, according to him a prima facie critical aspect that brands need to understand and adhere to is consumers' preference (still) for tasty products. Taste wins. This cannot be circumvented. Brands that don't compromise on taste but still address a specific concern area tend to be more successful.?

Second, he cautions that brands need to ensure that they develop products and solutions that seamlessly integrate into customers' daily routines rather than insist on creating a new habit or routine.

Often lack of adherence to one or the other turns into a roadblock to success.

He shares some market-based observations:?

• Many brands have got it right in the ingredients space. Pink salt today is about 5% of the total salt category, and many brands of millet and millet flour have taken a sizeable market share. Makhana's (fox nut) acceptance has grown by leaps and bounds. Nuts, seeds, dry fruits and berries are gaining rapid acceptance.?
• The addition of fibre, whole grains, nuts, seeds etc in biscuits, bread etc has seen some success. And they continue to bring new consumers into the fold.?
• In the processed food categories it is still early stages. True Elements with its range of products has been able to establish its credibility as a clean-label products company.?
• Many brands are experimenting in the snacks category by offering low salt, low fat, baked but not fried and so on but with limited success to date.?
• In ice creams, we are seeing a surge in offerings that are so-called healthier - lower in sugar and fat, calorie-specific packs and so on.?

Things are looking up despite the challenges, even though it's early days still.

The outlook is positive

Overall, the health food category is not just growing fast but also maturing into a "diverse and interesting" sector, where there is a place for all new ideas, provided they fill a gap, deliver solutions to specific needs, stay on top of the changing taste preferences and understand clearly the health and nutrient considerations of the fast wisening up Indian consumers. There are enough untapped opportunities for product innovation and exponential market growth, so the road ahead is bound to be interesting, even if challenging.?

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Kavita Devgan is a Practicing Dietician, Holistic Health Counsellor, Nutrition Advocate and Advisor, Health Columnist, Speaker and Author of Six Bestsellers

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