
Consumers have matured in their attitudes and behavior around wellness over the past five years. They are moving beyond the many wellness products that have become mainstream to explore new wellness areas. They are also branching out in terms of where they choose to buy wellness foods and other products. Although grocery stores still hold the greatest share of consumers’ wellness purchases, the channel has lost share over the past five years to alternative channels, such as natural food stores and mass discounters. Finally, this evolution is reflected in the amount households are spending on wellness, which averaged just over $100 per month.
The Meaning of WellnessIn two benchmark studies conducted by The Hartman Group in 2000 and again in 2005, we found that over the past five years, consumers have drastically increased the phrases and behaviors they use to define “wellness.” Some of the notable wellness definitions that have increased in support since 2000 include “mental and emotional balance,” “being physically fit,” “maintaining a balanced diet,” and “controlling my weight.”
This increase in the ways that consumers define wellness shows that consumers are personalizing what “wellness” means to them as they make wellness activities a more intentional aspect of their lifestyles. While the top reasons given for pursuing wellness habits remain the same, “wanting to stay healthy” (83 percent), “prevent a future illness” (78 percent), and “feel better” (63 percent), consumers are less likely to offer general reasons than in the past. This suggests that consumers are less inclined to refer to vague concerns to support their participation in wellness — a sign of consumers’ evolution in wellness over the past five years.
These attitudinal changes manifest themselves behaviorally in a variety of ways. Most notably in their dietary behaviors, consumers today are seeking moderation, an increase in protein consumption, and a decrease in sugar intake.
MODERATION: Consumers are applying moderation to their eating behavior in numerous ways. For example, five years ago, people were less inclined to eat red meat due to its connection with heart disease and high cholesterol. This behavior has been replaced by the moderate consumption of hormone-free “lean” meat, including beef and pork.
On the low-carb front, consumers following low-carb diets found it difficult to maintain social ties and engage in family activities, which caused them to moderate their low-carb diets. Now, most consumers look at moderation with a more holistic viewpoint — to them, it entails a balance of sleep, food, exercise, family/friends, and even spiritual awareness.
SUGAR: Largely driven by the heightened awareness about low-carb diets, consumers actively speak about the ill effects of sugars and their attempts to reduce their consumption of them. What began as a general avoidance of carbohydrates for many consumers has evolved into an avoidance of refined carbs, such as white flour and sugar. Even consumers who only dabbled in low-carb diets experienced firsthand the physical effects of reducing their carb intake, such as sustained energy, no spikes or dips in blood sugar, and an increase in their energy level.
PROTEIN: Low-carb diets also had an effect on consumer intake of protein. Consumers are going back to meat and dairy foods as is evident in their refrigerators, where we regularly found low-fat yogurt, organic cheese and milk, and hormone-free meat. Consumers also tout an increase in energy levels as a result of their increased protein consumption. They report sustained energy, which prevents them from craving sweets and experiencing blood sugar crashes.
Also noteworthy is the prevalence of protein as a snack food. Consumers are placing nuts, seeds, protein bars, beef jerky, and string cheese in their bags, their cars, and their desks.
Changes in Shopping BehaviorAs consumers grow in their knowledge and sophistication about wellness, they are also shopping in more channels than ever before for wellness products. As this trend continues, grocery stores are losing consumers to other channels. In the organic food category alone, grocery stores lost seven percent of all wellness purchases (from 64 percent in 2000 to 57 percent in 2005). Instead, those wellness purchases went primarily to natural food stores and mass discounters. The loss of market share by the grocery channel indicates that the channel is not meeting consumers’ needs in this category — needs that include a unique shopping experience and freshness cues, among other factors.
While we did not benchmark wellness spending in the 2000 research, it is noteworthy that overall household spending on wellness is estimated at just over $100 per month. This represents approximately 16 percent of total monthly household expenditures. Not surprisingly, the categories with the highest percent spent on wellness were the categories of fruits and vegetables (28 percent); beef, poultry, pork, and fish (23 percent); and cereal, bread, and bakery products (22 percent).
ImplicationsConsumers’ growing sophistication around wellness inevitably poses opportunities for food manufacturers and retailers. Opportunities exist for manufacturers, for example, to offer consumers more protein choices beyond meat and soy, which appeal to consumers’ increased demand for nutritious protein sources. For retailers, especially traditional grocers, the need to offer specialized products and a unique shopping experience could not be clearer. Despite consumers’ claims to want one-stop shopping, they are visiting an increasing number of diverse retail channels in search of specialized, unique products that align well with their individual lifestyles. Consumers are clearly taking advantage of all retailer options available, and those retailers who don’t offer a compelling reason to bring consumers in the door are being left behind.
Editor’s Note: Laurie Demeritt is president and COO of The Hartman Group, a full-service consulting and market research firm that offers services and products focused on consumer understanding. The report, Wellness Lifestyle Insights: Evolution of Consumer Trends in Health and Wellness, is based upon research conducted in 2005 and uses quantitative research conducted in 2000 to provide trend analysis. For more information about the report, please visit: www.hartmangroup.com/products/studywellness2005.html.