Health Update: Health, Wellness, and Functionality: Core Drivers of Consumer Preference in Food and Beverage – What Experts Say

Insights from Lewis’ Food & Beverage Team

Health, wellness, and functionality have become central to consumer preferences in the food and beverage industry. As consumers redefine what ‘healthy’ means, brands must evolve to meet growing demand for products that support both physical and mental well-being. This article delves into the critical role these factors play in shaping market trends, driving innovation, and influencing strategic marketing approaches for CMOs and CEOs seeking to lead in this dynamic landscape.

Understanding Market Trends and Consumer Behaviour

To lead in today’s competitive food and beverage market, brands must understand the health and wellness priorities shaping consumer choices. Key trends include:

• 45% of Americans now view even moderate alcohol consumption as unhealthy — fuelling the rise of functional and non-alcoholic beverages.
• Gut health is driving growth in prebiotic sodas and energy drinks.
• Ingredient transparency tops consumer priorities in functional products.
• Half of consumers aim to cut back on ultra-processed foods, favouring clean-label options.

These shifts present a clear mandate for brands to align their offerings with evolving health-conscious preferences.

Innovation: The Key to Staying Competitive

Health, wellness, and functionality are reshaping innovation within the food and beverage industry. Successful brands are going beyond traditional product development to rethink every aspect of their offerings – from ingredients and formulations to packaging and marketing strategies – to meet the evolving expectations of health-conscious consumers.

The non-alcoholic beverage segment exemplifies this shift, with rapid growth in gut health-focused prebiotic sodas and energy drinks that provide functional benefits beyond hydration. Such innovations not only cater to digestive wellness but also align with the broader commitment to authentic, transparent, and beneficial product experiences that consumers demand.

Moreover, innovations often extend to sustainable and convenient packaging solutions that appeal to environmentally aware consumers, reflecting the intersection of wellness and ethical considerations.

Strategic Marketing Insights for Brand Growth

To succeed in a health-driven marketplace, marketing strategies must be precise, authentic, and responsive. Key strategies include:

• Employing data-driven decision-making to identify emerging wellness trends and tailor messaging that resonates with consumer values.
• Leveraging digital channels, influencer partnerships, and personalised experiences to foster deeper connections and enhance brand loyalty among health-conscious audiences.
• Understanding and adapting to recent developments, such as the growing use of GLP-1 weight loss medications, which alter consumer attitudes and behaviours toward health.
• Crafting relevant communications and product positioning that address evolving consumer needs and aspirations for wellness solutions.

Actionable Recommendations for Food and Beverage Brand Leaders

To translate these insights into growth, food and beverage leaders should focus on four key actions:

1. Foster innovation as a growth engine. Empower teams to create wellness-driven products that deliver both functional benefits and clean ingredients.

2. Stay closely connected to consumers. Use engagement and feedback loops to stay tuned to shifting health and wellness priorities.

3. Adopt agile marketing and business strategies. Respond quickly to new opportunities – from the rise of non-alcoholic options to evolving definitions of ‘healthy.’

4. Embed wellness into your brand DNA. Build loyalty and differentiation by making health, transparency, and functionality core to your brand’s identity.

Embedding health and wellness into every part of your strategy positions your brand to lead – not follow – in the next era of food and beverage innovation.

​Key Questions Answered in This Article

Q> Why are health, wellness, and functionality critical in food and beverage today?

A> Consumers increasingly prioritize products that support physical and mental well-being, creating demand for functional, clean-label, and non-alcoholic options.

Q> Which market trends should brand leaders watch?

A> Growth in prebiotic and gut-health beverages, rising demand for clean and transparent ingredients, and a shift away from ultra-processed foods are shaping consumer preferences.

Q> How are brands innovating to meet these needs?

A> Successful brands rethink product formulation, packaging, and marketing, delivering authentic functional benefits while aligning with sustainability and ethical considerations.

Q> What marketing strategies work best for health-conscious audiences?

A> Data-driven trend tracking, personalized digital campaigns, influencer partnerships, and authentic communication help brands connect and build loyalty.

Q> What actionable steps should food and beverage leaders take?

A> Foster innovation, maintain close consumer engagement, adopt agile business strategies, and embed wellness into your brand’s core identity to lead in this evolving market.