Demand for personalization along the path to purchase is growing across almost all grocery categories, but especially in food and beverage. According to market research from GlobalData, foods tailored to interests, diets (vegetarian, vegan, low-carb), cultures and lifestyles are growing in both value and volume. From 2020 to 2023, foods that appeal to specific consumer groups grew at a compound annual growth rate (CAGR) of 5.2% in value and 1.2% in volume. The analysis covers 10 major markets, including the UK, US, Russia, Spain and China.
This growth coincides with changes in consumer behavior and consumption drivers: As awareness of the strong correlation between food and health increases and busy, stressful lifestyles limit opportunities to relax, unwind and get the right amount of nutrition into your meals, more and more people are changing their diet for ethical reasons, allergies, weight loss and to maintain their physical and mental health and well-being.
In Q1 2023, one-third (33%) of consumers who took part in one of the world’s largest surveys, commissioned by GlobalData, said they consider it “essential” for products to be customized to their interests before purchasing. Consumers aged 25-34 are most influenced by customized products (61%), but this trend was seen across all age groups. By the third quarter of last year, more than half (56%) of survey respondents said they were always or often influenced by food and beverages customized to their needs and personality, with health being their top purchasing driver.
More than half of survey respondents (63%) said health labels on product packaging, including information about protein, sugar and preservative content, always or often influence their product choices.
With this in mind, analysts at GlobalData advise food brands to capture the opportunities presented by these fast-growing groups, especially those looking to boost their immunity and safeguard their physical and mental health in the short and long term.
“Given the growing demand for health-boosting and functional ingredients, non-alcoholic beverage and food brands can benefit from incorporating them,” says Chris Rowland, associate analyst at GlobalData. Manufacturers are already following the trend, with new products for vegan, vegetarian, dairy-free, gluten-free and low-carb diets giving customers the choice to find the options that best suit their preferences and dietary requirements.
Prebiotics, probiotics and, increasingly, postbiotics are becoming common additions to food and beverage formulations, with many studies showing benefits for digestive system, brain health and overall immunity to infection and disease.
“Incorporating these ingredients into foods and beverages allows people to customise the nutritional composition of their diet to suit their individual needs. For example, adding protein powder to a smoothie can help athletes improve muscle recovery, while including specific biotics in foods and beverages can support immune health,” said Dr Chin Boon Wong, manager of scientific communications and marketing at Morinaga Milk Industry, a leading Japanese dairy company known for its extensive research and development of unique functional ingredients such as probiotics and postbiotics.
Revolutionary, but manufacturing challenges must be overcome
She added: “As the range of applications of functional ingredients expands, it becomes easier to target health issues and promote overall wellbeing. For example, incorporating postbiotics such as LAC-Shield, which our studies have shown to boost immunity, into foods and beverages could benefit people who are prone to catching colds.”
Food personalization isn’t just about nutrition; it also involves tailoring tastes and experiences to individual preferences. When consumers enjoy the products they consume, it’s much easier to maintain healthy eating habits. Manufacturers can respond by expanding their product lines to cater to diverse tastes.
Therefore, manufacturers looking to serve the food personalization market must invest in product development, which can be a costly and time-consuming process. Moreover, when adding functional ingredients, manufacturers must ensure that the flavor and texture of the product are not compromised.
The benefit of a functional ingredient must be able to withstand intensive manufacturing methods such as heating, cooling and processing without affecting the taste of the familiar product that consumers love. For example, many foods with probiotics have a limited shelf life, such as in the refrigerated category, yogurt and kefir. However, postbiotics can be used in staple foods with longer shelf lives, which could be the key to rolling out functional ingredients to more food products.
Postbiotics – the next big thing
Postbiotics are preparations of non-living microorganisms or their components. It is the most recently defined category of immune-boosting biotics and has the potential to become the next big thing in the food industry due to its unique properties and tolerance to harsh processing conditions. Therefore, unlike probiotics, they can be incorporated into a wide range of foods, including essentials such as juices, teas, energy drinks, nutritional bars, bakery products, and confectionery.
Morinaga Milk Industry’s LAC Shield Postbiotic has been scientifically proven to prevent colds and enhance influenza vaccine response. Selected from thousands of lactobacillus strains, this strain has a unique and powerful ability to induce the production of interleukin-12 (IL-12), a cytokine with important regulatory functions, including bridging innate and adaptive immunity. LAC Shield has already been incorporated into over 1,000 products by over 500 companies in Japan.
Dr Wong believes scientific advances in postbiotics will play a major role in spurring new demand for personalised foods.
“The versatility of postbiotic ingredients such as LAC-Shield means that the potential applications in food and beverages are endless. Because LAC-Shield does not alter the flavor or color of the finished product, it can be incorporated into a variety of foods and beverages to support immune health,” said Dr Wong.
“In the future, postbiotics may be available in a wide range of food and beverage formats to meet individual health requirements with highly personalized meal plans.”
To learn more about postbiotics and the future of personalized food, download our free whitepaper below:
