Health and wellness trends: Adapting to the new consumer demand for well-being

Retail is at a crossroads, driven by ethical consumerism and the need for sustainable practices. The Kestria Consumer & Retail Practice Group brought together industry leaders to explore strategies for addressing these emerging priorities.

Key takeaways: 

1. Transparency and trust: Ethical sourcing and clean labels build consumer loyalty.
2. Consumer priorities are shifting: Health, wellness, and sustainability drive consumer choices, led by younger generations.
3. Sustainability as a success factor: Eco-friendly practices boost profitability and loyalty.

The rise of wellness-focused consumer products: How retailers are adapting to the demand for healthier choices

Exploring consumer trends: the rise of wellness-focused products

Saurabh Jain, ex-Chief Marketing Officer at Zydus Wellness, India, emphasizes that the focus on health and wellness has grown significantly, particularly post-Covid, with individuals and families prioritising their health now more than ever. ‘Beyond personal efforts, government agencies, NGOs and social media influencers are driving awareness and promoting healthier habits. Lifestyle changes pertaining to health consciousness have been significant, as also reflected via adoption of new-age products like wearables and biomonitoring devices. This kind of shift reflects a broader, maturing ecosystem increasingly centered on health and wellness.

Key consumer wellness trends include the growing prominence of preventative healthcare, projected to exceed $200 billion by next year and expanding well into nutrition and food products. Younger generations, particularly Gen Z, are increasingly health-conscious, valuing fitness and wellness-focused role models. Product opportunities lie in personalisation too, with tailored offerings highly valued. This has also been a key driving enabler in the rise of D2C brands, catering to these evolving and fragmented consumer needs.

From a consumer perspective, two other key trends have emerged in how product solutions are evaluated - clinical efficacy proof with measurable health benefits and a preference for more natural, organic and clean-label products. These themes are driving the focus of local D2C brands and global organisations alike,’ says Saurabh Jain.

Andréa Moura is the North America director at Genu-in®, a new business area of ​​JBS S.A that produces gelatin and hydrolyzed collagen in Brazil. 'We leveraged our extensive B2C experience to enter a new market focused on direct-to-consumer products. As an animal protein company, we recycle various animal parts, managing the entire supply chain from farmers and transportation to processing facilities and tanneries. While one segment of our business focuses on leather production, another uses bovine hides, primarily for recycling purposes.

Previously, we exclusively sold hides to companies in the sector, which are now our competitors today and that produce gelatins and collagen, leaving the final stage of the recycling process unexplored by JBS. By focusing on longevity and well-being, we leveraged our expertise and raw materials to gain full control over the process, producing health-benefiting ingredients directly,' explains Andréa Moura.

Hydrolyzed collagen offers numerous benefits beyond skin health, supporting joints, bones, cartilage and tendons, making it essential for overall well-being. Consumers are now recognising the need for supplements to support longer, more active lives, with a focus on mobility and vitality. By combining upcycling with full control of the supply chain, processes are more efficient, ensuring competitive pricing and meeting sustainability and market demands.

‘Gelatin is primarily used in desserts, confectionery and dairy products such as yogurts, where it provides consistency. It is also a key ingredient in the global production of hard and soft capsules. Although vegan alternatives are available, demand for traditional gelatin continues to grow, especially in sugary confectionery and the growing market for sugar-free nutritional gummy supplements. This trend shows no sign of slowing down, ensuring that gelatin remains essential in these areas,’ adds Andréa Moura.

The second change, especially among younger consumers, is a preference for products that benefit both personal health and the environment. Consumers favour brands with strong CSR policies and locally produced goods to minimise environmental impacts.

The third trend is the rapid growth of online shopping, with increased demand for products previously less available online. Localisation also influences decisions, as consumers balance interest in exotic options with a preference for traditional local goods with modern twists. They are also willing to pay a premium for products that meet high standards of quality and well-being,' notes Antonis Salevourakis.

Importance of ingredient transparency for health-oriented consumers

Anshu Gupta, Director at NGC International Advisory, an APCO Worldwide Company, UAE, highlights that transparency is about engaging consumers as informed partners in their health and wellness journey rather than as mere buyers. Providing a clear overview of products, from sourcing to quality, is crucial for building consumer trust and brand loyalty. Today’s consumers seek transparency to ensure their choices align with their personal values, prioritising well-being, ethics and environmental impact.

'As awareness of health and environmental effects grows, consumers demand clarity from brands. Transparency enables informed decisions, aligning products with dietary and health goals. Brands that openly share sourcing practices build trust and loyalty while addressing skepticism about greenwashing through verifiable claims. Consumers appreciate brands that back their claims with tangible and accessible proof of commitment. Today's consumers, especially in health and wellness, value transparency in ingredient sourcing and handling. For instance, parents buying baby food or shoppers seeking supplements trust brands that ensure quality, safety and natural ingredients while mitigating risks from allergens and harmful substances,‘ says Anshu Gupta.

'Consumers increasingly prioritise ethical and environmental implications of their purchases, considering factors like worker treatment, environmental footprint and sourcing practices. They seek purchases that support fair trade, reduce harm or are cruelty-free. Transparency on these values strongly resonates, particularly with younger, purpose-driven buyers. Nowadays, transparency in sourcing is essential for connecting with eco-conscious and health-focused consumers. It's no longer a trend but a critical expectation driving sustainable brand success. By embracing transparency, brands foster trust, build lasting relationships and empower consumers to make informed, value-driven choices that align with their beliefs,‘ adds Anshu Gupta.

Cristobal Yuraszeck, Founder and Commercial Director at Mizos, Chile points out that the majority of the mentioned trends are also being observed in the market. 'For this cereal, we incorporated these trends into the product we recently launched in Chile, which has been very successful. Key points include prioritising local production, high-quality ingredients and health benefits.

One overlooked area is taste. Products must balance indulgence with the health focus consumers seek. We use natural sweeteners like chicory, date paste, and Stevia, crafting cereals from legumes—a mix of lentils and chickpeas - flavoured with strawberry or chocolate. Brands must prioritise transparency, with clean labels reflecting company values and product integrity rather than just serving as marketing tools. Clearly presented ingredients are crucial, as the clean label trend is highly relevant today. Consumers seek holistic well-being, investing in what a brand represents and how it makes them feel, not just in the products themselves,’ notes Cristobal Yuraszeck.

Rosmer Jurado Van Grieken, CEO at Proluxsa, the largest producer of vinegar in Central America and the Caribbean, looks at Panama as a key market due to its strategic location and excellent logistics, which allows them to efficiently supply the ingredients to multinational companies regionally. 

'Our vinegar is used by companies like Nestlé, Unilever, McCormick and Kraft Heinz to produce items such as mayonnaise, ketchup and pickles. Implementing food safety systems was essential to meet stringent protocols, enabling us to expand our market and export to 15 countries from Panama while benefiting from clean labels. As I’ve noted, "less is better" - natural ingredients surpass artificial additives. Vinegar is both a permitted food and a natural preservative, reflecting global trends favouring natural ingredient sources, which we support through our products.

We ensure robust traceability from suppliers to customers. While primarily a B2B company, we also offer consumer products, diversifying our portfolio. Our production aligns with the shift away from artificial colouring and preservatives, meeting the demand for natural, additive-free products from increasingly informed consumers,' explains Rosmer Jurado Van Grieken.

Sustainable well-being: The role of ethical and eco-friendly practices in consumer preferences

Successful strategies to balance eco-friendly practices with profitability

'Sustainable practices boost revenue, customer loyalty and brand reputation, as demonstrated by FMCG giants integrating sustainability into all operations with responsible governance and impactful implementation.

Businesses balance sustainability and profitability by focusing on resource efficiency, innovation and stakeholder alignment. They reduce energy, water and material use through efficient systems and transition to renewable energy, cutting costs and emissions. 

Sustainable product development and eco-friendly innovations are also key, with initiatives like recycling, waste reduction and biodegradable packaging, such as recycled PET bottles, to minimize environmental impact and landfill waste.

Sustainable sourcing ensures environmentally responsible and socially equitable supply chains, boosting brand loyalty and appealing to conscious consumers. Transparent reporting enhances reputation, attracts investors and increases market valuation.

For example in the UAE, some of the top food and beverage companies are leading the way with investments in renewable energy and electric vehicles, reducing carbon footprints while balancing sustainability with profitability,' emphasises Anshu Gupta.

Evolving Relationship Between Sustainability and Wellness

According to Cristobal Yuraszeck, there is a strong relationship, especially as consumers become more aware of holistic health. ‘While greenwashing remains a risk, this is changing as consumers demand honesty. For companies focused on sustainability and wellness, authenticity is essential. Being authentic, local, or "glocal" is vital. Natural trends benefiting both individuals and the planet resonate with new consumers, particularly when combined with low emissions. Younger generations are increasingly concerned, pushing companies to act quickly. In Latin America, though less advanced than developed markets, progress is gaining momentum.’

Companies with a strong purpose attract talent, as people increasingly seek organisations with meaningful goals beyond profit. While profitability is essential, purpose is equally crucial for drawing talent. Integrating ESG and sustainable practices with wellness is vital, both in products and organisational structures.

'Workplace strategies and relationships are key, with wellness becoming more significant in shaping internal and external perceptions. This shift is advancing quickly. Over the past decade, I’ve observed a notable change from a sole focus on high-paying jobs to a growing preference for purpose-driven work,' adds Cristobal Yuraszeck.

The wellness economy: How consumer spending on health and well-being is shaping retail strategies 

Per Andrea Moura, generational differences influence preferences, with Generation Z, Millennials and Baby Boomers/X valuing different costs and benefits. 'Product types like beverages, bars or snacks with health benefits, along with sustainability and transparency, are key.

Trends focus on antibiotics and probiotics for digestive health and reducing inflammation, as well as mental health, better sleep and energy. Younger generations prioritise energy and well-being without discomfort.'

For Rosmer Jurado Van Grieken wellness and health in retail are highly profitable sectors, driving efforts to expand product ranges. 'While more advanced in Europe and the US, supermarkets in Latin America increasingly see its potential, thanks to inelastic pricing of health-oriented products compared to non-health items. 

Aisles now feature superfoods, functional beverages, and probiotics, with consumers willing to pay premiums for health benefits. Retailers are expanding shelf space and specialised stores, such as organic and plant-based shops, which are growing rapidly in Latin America. This trend aligns with our industry experience, offering significant revenue opportunities.'

The role of digital transformation simplifying access to wellness products

Furthermore, digital technology is enhancing patient compliance through progress tracking, reminders and adjustments, improving wellness and healthcare outcomes. Technology also has other advantages, e.g. enabling faster consultation and online discussion, bridging healthcare gaps, while virtual communities make wellness more accessible and inclusive.'

Key Metrics for Tracking the Success of Wellness-Focused Initiatives in Retail

‚There are two main categories of KPIs,’ says Antonis Salevourakis. ‚The first are internal KPIs retailers use to track wellness initiative effectiveness, such as product sales and profit performance. Wellness products also play a key role in customer retention and loyalty, especially among younger consumers who prioritize health, well-being, and sustainability and prefer retailers with a consistent strategy.

Second, internal KPIs are important, with employee engagement, satisfaction, and wellness awareness being valuable metrics. As young graduates increasingly value a company’s social profile and CSR strategy, these KPIs help companies align with recent trends, both in Greece and globally.

When I recently interviewed for a role at Puratos Helas, they asked about our CSR policy, its consistency and whether we have independent auditors to monitor its execution. These could also serve as KPIs to track wellness initiatives.’

The critical success factors for thriving in today's consumer environment

‘In the consumer sector, staying aware of trends, avoiding complacency and consistently innovating are crucial,‘ says Cristobal Yuraszeck. ’Innovation must outpace competitors, which can be challenging during growth. If an innovation fails, discard it and move on. If two out of ten innovations succeed, that’s a strong success rate. The key is to keep innovating and not fear failure, as it indicates progress. Consistent innovation is essential.'

According to Antonis Salevourakis, in this environment, companies must possess two key characteristics: speed in responding to rapidly evolving consumer trends, especially post-Covid, and flexibility and resilience in adapting strategies. ‘Consistency is also crucial, companies with a clear purpose must align what they communicate with what they execute, both internally and externally.’

Anshu Gupta states it’s crucial to provide early warnings about changes, helping organisations gain visibility on trends, policies and regulatory shifts that support innovation. In the food and beverage sector, especially for healthier options, consumer behavior is often fragmented. Research shows consumers may prefer low-sugar products but often choose something else.

'Investing in consumer awareness of health benefits, creating compelling stories and offering differentiated products is key. Organisations must carve out a niche and ensure health claims are ethically verifiable and supported by evidence, especially to appeal to younger consumers. By doing so, they can build trust and loyalty in an increasingly competitive market.'

Summary

As consumer expectations evolve, the retail and wellness sectors must prioritise transparency, sustainability and innovation to remain competitive. Ethical sourcing and personalised experiences are no longer optional. They are essential for building trust and loyalty in an increasingly values-driven market. Agility in navigating challenges and embracing change will define the next era of consumer engagement and business success.

The Kestria Consumer & Retail Practice Group is committed to helping clients navigate the growing demand for health-conscious and eco-friendly practices within the sector. We specialize in identifying leaders who are passionate about sustainability, wellness, and ethical consumerism, ensuring that brands can meet the evolving expectations of modern consumers. By staying attuned to the latest trends in health, wellness, and environmental responsibility, we empower businesses to align their strategies with values that resonate deeply with today's market, creating lasting impact in a competitive and conscientious landscape.