A focus on healthy living is clearly no longer a concern only for extremists. Virtually every summit attendee had
a hand in the air when Sherry Frey asked who in the past year had sported a Fitbit-like device, changed their diet for health reasons or downloaded a nutrition-tracking app to their smartphones.
“This health-and-wellness trend has clearly caught the fancy of the American public, moving from fanatics to mainstream,” said Frey, senior vice president of Nielsen’s perishables group.
Indeed, after the economy, health is the No. 1 concern for global consumers. Though Frey admitted the top c-store sellers of tobacco and beer “don’t exactly scream healthy,” she pointed out that even those segments are trending toward wellness; just look at the growth in potentially reduced-harm products such as e-vapor and smokeless tobacco.
Natural Consumer Growth
The shift toward healthier options in a category such as tobacco has happened naturally. But Frey thinks there’s an opportunity for the convenience channel to further capitalize on the health-and-wellness movement—thus attracting new, less traditional shoppers to the channel, including:
Youth: Because younger shoppers make fewer shopping trips across the board than previous generations, retailers need to focus on how to best capture that trip and boost basket size. “Millennials are driving a lot of the health-and-wellness trends we’re seeing and, in many cases, are more willing to pay for those healthy products,” Frey said, pointing out that health is an even bigger focus for the under-20 Generation Z. “They are fully willing to spend their parents’ money on health and wellness.”
Women: Even today, females tend to do the vast majority of household shopping—except in convenience, which still skews highly male. Women (especially mothers) also tend to place a higher emphasis on health and wellness.
High Earners: No surprises here. Consumers in high-income households spend more on health and wellness and tend to spend less time shopping convenience than low-income households do. “Health and wellness is a very, very logical way for you to attract these consumers to your stores,” Frey said.
That isn’t to say low-income shoppers aren’t interested in health and wellness too. Frey believes these core c-store shoppers would potentially benefit the most from the availability of convenient, price-sensitive healthy offerings.
“Consumers are looking for convenience: convenient food, and now convenient health,” she said. “C-stores are in a really great position in terms of the opportunity to pull consumers in for a larger food shopping trip.
Implementing a convenient fresh-food program is no easy task—as Frey put it, “You don’t get points for brown bananas”—but it’s one with high reward if you take the risk. “Consumers are willing to buy fresh anywhere as long as it delivers on their needs,” she said.
For retailers more comfortable with merely dipping a toe in the health-and-wellness waters, Frey pointed out there are numerous companies leveraging the “halo effect of fresh” through consumer packaged goods.
Some specific category opportunities Frey outlined were:
Packaged Beverages: The biggest news might be about how sales of packaged beverages are suffering due to the health-and-wellness phenomenon. Soda sales are flat largely because of the decrease in diet soda, she said, a “direct reaction” to consumers caring about natural ingredients. That said, the health-and-wellness-friendly segment of ready-to-drink refrigerated teas is taking off in grocery—and Frey sees this as an easy c-store opportunity.
Snacks: “There’s a change going on with how we snack,” Frey said. “It’s really becoming a meal replacement, with consumers looking for better-for-you snacks.” Nowhere is that more apparent than in the emphasis on protein. Eighteen percent of consumers say they want more meat- and protein-oriented snacks, and the c-store channel has seen 12.4% growth in products with a “protein” claim (vs. just 3% in the grocery channel). “Protein is getting its due from consumers in terms of understanding and appreciating its value.”
Over-the-Counter (OTC) Medications/ Supplements: “You are a convenient space,” said Frey. “Many of those over-the-counter needs are immediate.” As such, Nielsen shows all health-care-related OTC products, except weight loss and diet pills, have seen growth at c-stores.
Ultimately, merchandising healthy products properly might be more important than what kinds of products retailers carry. Frey pointed to Target’s “made to matter” tag added to health-and-wellness-related items such as Chobani Greek yogurt or Amy’s Organic goods. Aside from the label, Target calls out these healthy choices by merchandising them together.
“They’re kind of curating health and wellness for their consumers,” she said.
The road to health and wellness is no simple task, but it’s one Frey said offers high rewards on both a moral and a financial level.
“The idea that we can be a part of fostering a healthier America is really exciting,” she said. “Healthier shoppers really do cater to a healthier bottom line.”
CONTINUED: Is Produce the Answer?
An Apple a Day
Frey says produce offers retailers an opportunity to bring fresh food into their stores—and get creative in the process. Using apples as an example, Frey suggested retailers consider:
Going Small: Cater to moms and kids with snack- and smaller-sized apples.
Going Beyond the Usual Suspects: People may usually think of Red Delicious and Granny Smiths when it comes to apples, but Nielsen’s FreshFacts found that Gala apples have a higher household penetration.
Going Local: Depending on a retailer’s region, apples could be an easy opportunity for capitalizing on the trend toward hyperlocal products by partnering with an area orchard.
Going Cut: Nielsen fınds that consumers tend to be less price sensitive about precut fruit and vegetables.
“People will pay more for ready-to-eat product when they want or need it,” said Frey.
Understanding Health and Wellness
When it comes to health and wellness, Nielsen suggests retailers consider four pillars:
Vested Interest in Health
Now more than ever, consumers are taking personal ownership of their own health, reading, learning and self-educating overall. Almost 90% of consumers Nielsen surveyed said they’re responsible for their own health.
Healthy Aspirations
What people say and what they want don’t always jibe. Nielsen considers the interaction between consumer desires for a healthy lifestyle and whether behaviors match these attitudes.
Food as Medicine
It’s the old adage of “You are what you eat.” Three-fourths of consumers say they can manage their health through nutrition. It’s an interesting dynamic of consumers who would prefer to improve their health through what they consume, vs. western medications.
Not One Size Fits All
In the broad concept of health and wellness, there are differences in demographics and attitudes, and different needs for different consumers overall.
Marketing Health and Wellness
Here are health-and-wellness claims seeing stronger growth in the convenience channel than in Nielsen’s total U.S., all outlets combined:
- Antioxidants
- Bone health
- Caffeine presence
- Diabetes
- Fat presence
- Fiber presence
- Fortifıed
- Gluten free
- Low glycemic
- Grain type
- High-fructose-syrup free
- Hypertension
- No MSG
- Natural
- Protein presence
- Salt or sodium presence
- Sleeping aid
- Soy
- Plant sterols
- Sugar presence
- Vitamin and mineral presence
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