The rise and rise of wellness
Research across the globe has shown that products offering specific health benefits – be it fortified, functional or natural – are driving sales with rates above 7% per annum.
“Emerging markets like China and Brazil alone contributed $15 billion in new sales in 2011, and steady growth of 7,2% is expected to continue to 2017,” says Ewa Hudson, global head of health and wellness research at Euromonitor International.
Some of the biggest industry winners to date have benefitted by combining four key factors: Health, convenience, fashionable packaging and affordable pricing.
“This strategy has worked particularly well for ready to drink (RTD) products like green tea where the convenient format has overtaken sales of traditional green tea and is expected to achieve annual growth of 12% to 2017,” says Hudson.
Local business in action
Getting in on the international health and wellness action is South African pair Nicole Sherwin and Joseph Itskin. Together they’ve launched the country’s first online vitamin company – Vitology – that offers monthly subscriptions and to your door delivery of high quality vitamin and mineral supplements with no costly mark-ups. The company also offers an online assessment and an online doctor to answer queries.
Comparing global 2007 retail value to 2017, a number of industries are set to hit the $1 trillion mark. These include: Food intolerance (such as gluten and lactose), growing from about $5,7 billion to over $1 trillion; Organic from about $5,6 billion to just over $1 trillion; and ‘better for you’ products from $5,5 billion to $1 trillion. – Euromonitor.
China & Brazil
2011 Saw living standards and disposable income rise for Latin America and China. Between 2012 to 2017 Brazil and China alone are expected to add $103 billion in new sales to the global health and wellness market. – Euromonitor
Some 60% of South Africans are overweight, even though that same number agreed it’s important to stay in good shape. Although 62% of consumers read up on health, wellness and nutrition, call to action is low as only 30% commit to exercise and 42% blame their busy lifestyles for not taking better care of themselves. – The Target Group Index 2012
Thinking Ahead. Business Ideas of the Future