In 2024, consumers are expected to elevate their expectations for packaged food and beverages, leading to a heightened demand for products such as mushroom-based meat alternatives and healthier options. “Nutrient content and ingredient transparency are paramount for them,” stated Christina Ra, VP of Marketing at Meati, highlighting a 10% growth in their target consumer base over the past two years. “They prefer fewer ingredients that they can easily recognize.”
As these consumer habits continue to evolve in 2024, Chris Cain, partner at Foley & Lardner, identifies an opportunity for what he refers to as “emerging-growth companies.” These health-oriented, niche consumer packaged goods (CPG) brands are focused on providing the better-for-you products that consumers are increasingly seeking, though this also intensifies competition. “This competitive landscape is a significant factor behind the abundance of SKUs related to personal self-health,” Cain noted.
The shift towards healthier products is not a new phenomenon, but CPGs are actively seeking to capitalize on this trend. For example, WK Kellogg Co has launched a new vegan cereal brand, Eat Your Mouth Off, while Mars has invested $237 million in a factory for The Nature’s Bakery. Additionally, General Mills’ Yoplait brand has introduced a protein line. Smaller CPGs are already aligned with these trends, innovating alongside them. Julia Perez, chief marketing officer for protein CPG Owyn, expressed enthusiasm for the brand’s Doubleshot Protein Coffee Shakes, which launched last August, tapping into the protein and energy trends and aligning with Owyn’s marketing objectives. “This year, we aim to emphasize that functional message, leading with strong macronutrient benefits,” Perez mentioned.
As consumers become more discerning, they seek more than just a multivitamin, as services like lab tests that help individuals understand their unique nutritional needs become more prevalent. The public is increasingly informed about what they wish to consume more of or avoid. In 2024, this knowledge can become quite specific, with adaptogenic herbs and functional mushrooms emerging as popular ingredients. Ra noted that appreciation for fungi has surged in the past two to three years. Meati aims to highlight awareness of mycelium, which they refer to as “MushroomRoot.” “There was a time when the term ‘mushroom’ was divisive, but that sentiment has largely changed as fungi gain recognition through influencers, documentaries, and a growing fanbase,” Ra observed.
In 2023, weight-loss medications like Ozempic and Wegovy sparked considerable discussion. PepsiCo CEO Ramon Laguarta acknowledged this trend but indicated to investors in October that its business impact was “negligible.” Currently, food and beverage leaders can only speculate on how these weight-loss drugs might influence dietary habits. “Only time will tell,” Ra commented, emphasizing the role of healthcare professionals in advising patients using weight-loss medications. As Perez pointed out, protein intake is crucial when undergoing rapid weight loss to ensure that fat, rather than muscle, is lost. Owyn collaborates with numerous practitioners across the U.S. to disseminate this information.
However, CPGs should not base their strategies solely on trends like Ozempic. According to Cain, weight-loss drugs should be viewed not as an isolated trend but as part of a broader consumer demand for healthier lifestyle options, alongside macronutrients and functional foods. He described these trends as “complementary,” noting that the demand for weight-loss drugs may negatively affect CPGs that do not offer better-for-you alternatives.
Niche CPGs should consider diversifying their portfolios to remain competitive, as larger CPGs may attempt to mimic or acquire smaller brands. Eventually, hype and demand will likely subside. “There’s significant profit potential and a multitude of SKUs to be launched,” Cain remarked. “It’s an exhilarating time for young companies in this space.”
In this evolving landscape, products like cal citrate plus vitamin D are also gaining attention, reflecting consumers’ desire for fortified and health-focused options. As the market shifts, integrating such products into offerings could be a strategic move for both emerging and established brands.