Multifunctional Products: Revolutionising the Microbiome Market
Summary:
- Driven by consumer preferences for supplements that offer benefits beyond gut health and pricing pressures brought on by the pandemic, multifunctional products are set to dominate the microbiome market.
- Industry experts from SPINS and Euromonitor anticipate a surge in multifunctional supplements, responding to cash-strapped consumers seeking holistic solutions with enhanced benefits.
- Market trends indicate a shift towards functional ingredients, with opportunities for brands to target new consumer demographics by emphasising benefits related to the gut-brain axis, immunity, mood, cognition, women’s health, and even niche areas like baby and toddler products.
As the repercussions of the pandemic persist and pricing pressures intensify, consumers are turning to multifunctional products that offer more than just gut health benefits. This shift presents a golden opportunity for innovative brands to tap into a new demographic, according to insights shared by industry analysts from SPINS and Euromonitor at the Future of the Microbiome Winter Summit.
Scott Dicker, Director of Market Insights at SPINS, highlighted the rise of functional ingredients as a macrotrend propelling industry growth. Consumers, facing economic challenges, are seeking combination products that provide enhanced benefits, driven by a desire for efficiency and efficacy in meeting their health needs without the burden of numerous pills.
Pricing pressures in the US and Europe have sparked a surge in multifunctional supplements designed to address a spectrum of health needs. Matthew Oster from Euromonitor emphasised the industry’s shift towards holistic consumer engagement. Rather than changing formulations, brands are adjusting messaging and incorporating new concepts into existing products, opening doors for enterprising brands.
The multifunctionality trend allows brands to reach new consumer groups strategically. By positioning products around benefits for the gut-brain axis, brands can cater to high-stress individuals seeking digestive health solutions. Oster noted the growing prevalence of this trend in the UK and Europe, predicting a seamless transition from the early to mid-2020s.
Scott Dicker identified a broadening scope within the gut health category, including products targeting immunity, mood, cognition, and women’s health. Mood support, in particular, emerges as a key area for anticipated growth, aligning with the overarching trend of improved digestive health leading to a better mood.
Women’s health, classified as a key trend for 2024 by SPINS, presents a substantial growth opportunity within the prebiotics and probiotics space. Additionally, the unexpected growth in baby and toddler products, fueled by the incorporation of probiotics for allergy sensitivity reduction, adds a unique dimension to the market.
Regional variations in gut health market trends showcase a fascinating interplay of factors. While the US experiences softness in the market, other regions, exemplified by China, tell a different story. The end of China’s lockdown in December 2022 triggered dramatic changes in consumer behaviour, leading to a flip in the probiotic supplement marketplace.
Oster highlighted the unique situation in China, where growth is expected to surpass the US by 2025. This shift is driving innovation, making the global marketplace an intriguing landscape to navigate.
The multifunctional wave is reshaping the microbiome market, offering not only health benefits but also strategic opportunities for brands to innovate and capture diverse consumer interests.
