Health and Wellness Food Industry Market Drivers in 2023
The Health and Wellness sector within the Food & Beverage industry continues to experience significant growth. More consumers continue to prioritize preventive nutrition, immunity, clean eating, and overall health and wellness, indicating a clear change in consumers’ food preferences.
In a recent industry report released by the Food and Beverage investment banking team from Brown Gibbons Lang & Company (BGL), in conjunction with Global M&A Partners (GMAP), some of the key market drivers are analyzed. These drivers are expected to support growth trends that will enable the industry to surpass $1 trillion in market size within the next five years. The Health and Wellness Food industry is estimated at $939.9 billion in 2022 and is projected to reach ~$1.4 trillion by 2027, representing an 8.5% CAGR.
Health & Wellness Food Industry Market Growth Driver: Intolerance to Lactose and Animal Protein
The increasing intolerance to lactose and the global adoption of vegan eating habits are expected to drive market demand. Rising awareness of animal health and cruelty to animals has resulted in a shift toward plant-based food products. Additionally, more than 65% of the global adult population have lactose intolerance and are always seeking lactose-free alternatives. These factors are likely to continue to fuel the demand for the Health and Wellness Food market since plant-based foods and ingredients provide an intriguing alternative.
Health & Wellness Food Industry Market Growth Driver: Increasing At-Home Lifestyle
The working population has shifted to a more at-home lifestyle in recent years. With a lack of commute to work and less overall active movement in the mornings, people have started to focus more on their diet by turning to health and wellness food products. Consumers are increasingly seeking products comprised of organic, range-fed, low-carb, dairy-free, and gluten-free characteristics to live a healthier lifestyle. Furthermore, increasing rates of obesity-related diseases have popularized the consumption of healthy foods to improve immune responses and overall health.
Health & Wellness Food Industry Market Growth Driver: Weight Management & Obesity Awareness
Most packaged foods are generally high in calories, sodium, solid fat, added sugars, and refined grains, which are highly correlated with Type 2 Diabetes and obesity. The demand for healthy food will continue to grow in order to combat obesity and obesity-related diseases. Growth in the Health and Wellness sector is also being led by the increased use of diet plans, fitness-tracking apps, and health and fitness clubs. Furthermore, growing education and awareness concerning weight management has increasingly been at the center of several growing lifestyle trends.
Health & Wellness Food Industry Market Growth Driver: Adoption of Healthy Eating Habits and Increased Product Offerings
The growing adoption of healthy eating habits is one of the leading factors fueling the continued growth of the Health and Wellness market. People are adopting healthy food throughout the world to boost immunity, support muscles, and strengthen bones. Consumers are becoming more conscious that healthy eating leads to higher energy levels, healthier skin, and longer life expectancy. Further, it helps avoid debilitating illnesses and disorders. Vendors within the Plant-Based and Organic Foods segments have started providing products that span a range of dietary and taste preferences to target a broad array of consumers.
Looking for more insights on the health and wellness food industry trends driving the market in 2023? You can download our full 32-page Insider report here.
Led by Daniel J. Gomez, our global Food & Beverage investment banking team provides extensive sector-specific expertise and access to relationships with global buyers and sellers, both within your home territory and throughout the world. Please reach out via our contact form below to learn more.