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Health and Wellness in the US

United States health products market: PepsiCo Inc the leading industry player during 2012

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2014-01-29 11:36:03 - Health and Wellness in the US - a new market research report on

Total health and wellness food and beverage sales in the US recovered in 2012 but at a lower level than in 2011. Much of the slowdown is due to a reduction in unit prices of drinking milk in 2012 as milk and other dairy products contribute a big portion to the overall health and wellness food market. At the same time, the recovery of the US economy is allowing consumers to pay more for health foods.

In the absence of a popular new diet, food manufacturers focused on gluten-free products. Though the number of Americans with coeliac disease is relatively small, health-conscious consumers gravitated toward gluten-free food to improve their wellbeing. Gluten-free products are marketed as helping with digestive issues, arthritis,



autism, and weight loss. As companies invested money into research and development, the taste profile of gluten-free products improved, thereby further increasing demand for these products among non-coeliac disease sufferers.

With a broad portfolio of packaged food and beverage brands, PepsiCo Inc is the leading company in the US health and wellness food and beverages market. Gatorade Co, Tropicana Products Inc, Quaker Oats, Naked Juice Co, and Frito-Lay Co are all subsidiaries of PepsiCo Inc. The multinational is able to invest heavily in research and development as well as in marketing. Though a fraction of PepsiCo´s size, Agro Farma is the winner in terms of fastest growth. After being founded in 2005, the maker of Chobani pro/pre biotic yoghurt was able to triple its share of the US health and wellness food and beverages market from 2010 to 2012.

Supermarkets are the leading channel for health and wellness food and beverages in 2012. Leading natural and organic supermarket chain Whole Foods Market rapidly expanded the number of retail outlets in the US. Other supermarket chains expanded their selection of health and wellness foods over the review period. Hypermarkets such as Walmart Supercenters are the second leading channel for health and wellness products. Though representing a tiny portion of health and wellness sales, drugstores (Other grocery retailing) and internet retailing are the fastest-growing channels for these products as drugstore chains CVS and Walgreens expand their food selections.

Growth in the 2012–2017 forecast period will be aided by an improving US economy which will permit many consumers to spend on health and wellness products. Additionally, desire for healthier products by Baby Boomers (children born in the period from the end of World War II to the mid-1960s) and parents of young children should also boost growth. With many Baby Boomers turning 65, they are turning to food and beverage products to help improve their quality of life. At the same time, parents are seeking to prevent obesity among their children by teaching them about the role of nutrition and exercise as well as choosing BFY options in dairy and snack foods.

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Mike King
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