The convenience sector is best placed to own this change
As suppliers and retailers, we have to embrace the change and recognise that the consumer shift towards healthier options is seismic and definitely here to stay. It is now more important than ever to allocate more space for ‘better for you’ categories such as protein bars, energy-based brands and Water+ beverages.
Ideally situated in both the healthy eating and confectionery categories, protein bars such as Fulfil are often found dual-sited in stores, sitting alongside classic confectionery brands, as well as healthy eating bays.
Those of us who are brave and take risks will be able to enjoy profitable growth from creating more space for ‘better for you’ and continuing to fill the void created by the sharp decline in sales of traditional confectionery and cola brands.
The convenience sector is currently seeing a ‘glass half full’ moment and is better placed to own this in-store shift than the grocery sector. Convenience Buyers can lead this change, as they have the autonomy to make decisions and buy produce for all categories, unlike an individual buyer for a grocer, who is often only responsible for one area.
New trends – eco to indulgence
At Red Star we are continually identifying emerging trends through our market insight and trend analysis.
- Seltzer water – unsweetened flavoured water – is having a moment and there is a huge amount of growth within this sub-category. Although the rates of sale are slow, there is clearly a trend for it, striking a sweet spot because of its lack of calories and unnecessary sugars
- Environmental packaging is fighting its way forward and we’re particularly looking forward to seeing a new water brand hitting the shelves later this year, in fully recyclable, non-see-through packaging, which will ignite huge change within the category.
- Water+, with protein and added functionality, will continue to grow as it’s driving 39%* of the growth in the booming Water category, commanding higher price points, outperforming Water and increasing its share of the market.
- Although there will always be uber-healthy consumers whose primary concerns are health, at the other end of the health spectrum there are those shoppers who are health conscious Monday to Friday but look forward to an indulgent treat at the weekend.
- At Red Star we believe it is crucial to provide brands that are scalable, having an appeal for the majority of consumers in the middle – those we might call “healthy activists” – who are prepared to make some effort to be healthier. We don’t just want to cater for the extremes at either end of the spectrum.