More manufacturers are expected to continue investing in innovative new products that offer consumers healthier product alternatives, as a growing number of Australians are becoming health conscious.
“Australian consumers are showing growing concern for their health and well-being and this concern is increasingly reflected in their purchasing choices,” said Euromonitor Digest, the online publication of the Export Management Bureau of the Department of Trade and Industry (DTI).
The report noted that Australian consumers indicate that products that have a health positioning, such as an “all natural” claim, have an influence on their purchasing decision.
Within beverages, this has translated into the growth of products perceived as healthier alternatives, such as ready-to-drink (RTD) teas.
It said products that provide functional benefits, such as Kombucha, also continued to record significant growth in 2018 as consumers seek out products that are promoted as supporting their wellbeing.
“Growing concern about healthy living, including diet and nutrition,has encouraged consumers to seek out products with functional benefits,” the report said.
It is thus anticipated that product ranges of fortified/functional beverages will become more differentiated as more niche players join the market.
Major players have also committed to reduce sugar content of non-alcoholic drinks, reflecting the growing trend among Australians to limit their sugar consumption.
Both distribution channels, supermarkets and discounters, are expected to continue focusing on providing healthier product alternatives for consumers, driven by growing consumer demand.
In addition to seeking out healthier food and beverage products, the Euromonitor Digest further said convenience will also be a driving trend for Australians, many of whom live a busy lifestyle.