INDUSTRY INSIGHT
Leading food giants drive innovation in healthy food sector
T
he health and wellness food sector has emerged as one of the fastest-growing segments within the global food industry, reflecting a fundamental shift in consumer preferences toward
preventive healthcare and nutritional awareness. That’s according to a market report from Credence Research. This market encompasses a diverse range of products including
organic foods, functional beverages, probiotic-enriched foods, plant- based alternatives, gluten-free products, low-calorie options, and fortified nutritional items designed to support overall health and well-being. The market’s growth trajectory is underpinned by several
transformative developments in the industry. Major food and beverage corporations have demonstrated their commitment to the health and wellness segment through significant strategic acquisitions and product innovations. In March 2025, PepsiCo announced an agreement to acquire Poppi, a prebiotic soda brand, for a total transaction value of $1.95 billion, or $1.65 billion net of anticipated tax benefits. The acquisition was completed in May 2025. This move allowed PepsiCo to capitalise on the growing consumer interest in gut health and functional beverages, a key area of expansion within the wellness food and drink market. Similarly, Celsius Holdings reinforced its position in the better-for-
you beverage category through its $1.8 billion acquisition of Alani Nutrition, announced in February 2025 and completed in April 2025. The bakery and clean-label segment also witnessed substantial consolidation with Flowers Foods’ $795 million acquisition of Simple Mills, which was announced in January 2025 and completed in February 2025. These deals reinforce the sector’s appetite for functional, wellness-oriented, gluten-free, and clean-label products. In May 2018, PepsiCo acquired Bare Foods, a producer of baked
fruit and veggie chips, as part of a long-term strategy to expand its health-focused portfolio. Then, in February 2025, PepsiCo announced a significant strategic shift toward healthier product offerings, focusing on value and better-for-you options. This was underscored by the acquisition of Siete Foods in January 2025 and full ownership of Sabra in November 2024, enhancing its presence in healthier categories. The company also announced plans to relaunch its Simply line and other core snack brands to emphasize cleaner labels and less artificial ingredients.
RISING HEALTH CONSCIOUSNESS AND PREVENTIVE HEALTHCARE ADOPTION Consumer awareness regarding the direct correlation between diet and long-term health outcomes has reached unprecedented levels, fundamentally transforming purchasing behaviours across global markets. The COVID-19 pandemic accelerated this shift, with consumers increasingly prioritising immune-boosting foods, functional ingredients, and nutrient-dense products as essential components of their daily diets. This heightened health consciousness extends beyond basic nutrition to encompass holistic wellness, encompassing mental health, digestive health, and chronic disease prevention through dietary interventions. The growing prevalence of lifestyle-related conditions such as obesity, diabetes, and cardiovascular diseases has further motivated consumers to adopt preventive healthcare measures, with functional foods and wellness-oriented products serving as accessible and proactive health management tools.
TECHNOLOGICAL INNOVATION AND FUNCTIONAL FOOD DEVELOPMENT The integration of advanced food science, biotechnology, and nutritional research has catalyed the development of sophisticated functional food products that deliver targeted health benefits beyond basic nutrition. Probiotic and prebiotic foods have experienced remarkable growth, with probiotic supplement sales reaching $2.1 billion in 2024, representing a 5.6% increase, while mushroom-based supplements generated $454 million with a 14.6% growth rate, and collagen products achieved $931 million in sales. The global probiotics market is projected to surge from $68.9 billion in 2024 to $143 billion by 2032, driven by rising awareness of gut health and advancements in microbiome science.
CLEAN LABEL MOVEMENT AND TRANSPARENCY DEMANDS Contemporary consumers demonstrate strong preference for products with simple, recognisable ingredient lists, driving the clean label movement that emphasises natural, minimally processed foods free from artificial additives, preservatives, and synthetic ingredients. This transparency trend has compelled major food manufacturers to reformulate existing products and develop new offerings that meet evolving consumer standards for authenticity and ingredient integrity. The organic and non-GMO product segments have experienced particularly robust growth, especially in North America and Europe, where consumers actively seek environmentally sustainable and ethically produced food options. Government initiatives promoting organic farming practices and clean-label regulations have further accelerated this trend, creating favourable conditions for health and wellness food manufacturers to expand their portfolios with certified organic, plant-based, and sustainably sourced products.
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