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Consumer demand for holistic health solutions is shaping trends in functional nutrition. Discover how functional nutrition aligns with McKinsey’s wellness area, offering new innovation opportunities.
McKinsey’s Future of Wellness research has been tracking the biggest growth areas of the wellness industry for the past five years. In six of these areas—women’s health, healthy aging, weight management, fitness, gut health, and sleep1—functional nutrition solutions are highly relevant, indicating significant opportunity for food and beverage brands.
In some cases, like women’s health products for menopause, the market is lagging. In other instances, the landscape has changed rapidly due to technological advancements, such as the use of GLP-1 medicines like Ozempic and Wegovy for weight loss. In all areas, we see ways functional nutrition can address these health needs across demographics.
Women's Health Iron, B vitamins, protein, calcium, dairy bioactives, adaptogens | Healthy Aging Protein, collagen, curcumin, BCAAs, leucine, calcium, dairy bioactives | Weight Management Protein, fiber, dihydrocapsiate, dairy bioactives, MCTs, B vitamins, zinc |
Fitness Protein, creatine, BCAAs, leucine, caffeine, electrolytes | Gut Health Fiber, prebiotics, vitamin C, vitamin D | Sleep Tryptophan or melatonin, magnesium, L-theanine, botanicals |
The functional nutrition trends of functional fortification, personalized nutrition, clean label, and nutraceuticals in food highlight different approaches that brands can take in product innovation. Regardless of the approach, ensuring the scientific backing of claims is critical to providing the transparency and effectiveness that today’s health-focused consumers expect from wellness products.
Functional nutrition focuses on using ingredients to promote optimal health and wellness, going beyond basic nutrition to target specific outcomes. This could be a functional beverage with tryptophan and chamomile that supports restful sleep or a healthy aging protein bar with collagen for joint health. Consumer demand for holistic health solutions drives the interest in functional nutrition products in the US and worldwide.
In Europe, 28% of consumers have become more self-sufficient in the care of their own health over the past three years,2 with getting adequate sleep, exercising regularly, and eating a healthy nutritious diet among the top five approaches.3 Additionally, for one in four, health and wellbeing is a top spending priority after living essentials.4
Q: Which function that a food or beverage might offer are most desirable to you?
| Gen Z | Millenials | Gen X | Boomers | |
|---|---|---|---|---|
| #1 | Hydrating (31%) | Boosting immunity (32%) | Boosting immunity (19%) | Improving gut health (18%) |
| #2 | To de-stress (30%) | Improving sleep (31%) | Improving gut health (18%) | Improving gut health (18%) |
| #3 | Improving sleep (29%) | Improving gut health (30%) | Improving sleep (17%) | Help age me well (16%) |
In China, around 40% of consumers say they are proactive in preventing health issues.5 Interest in functional foods and beverages is the highest overall for immunity, sleep, and gut health products, although Gen Z prioritizes hydration and stress relief benefits. 6
The functional nutrition landscape is evolving, with several key trends shaping the industry:
Functional fortification is on the rise, with brands enhancing products with vitamins, minerals, and protein to deliver targeted health benefits. This strategy expands the narrative around added nutrients by highlighting the benefits of a star ingredient—for example, “B vitamins for energy” rather than “essential vitamins.”
Personalized nutrition is also gaining momentum, offering tailored dietary and functional solutions based on individual health data, genetics, and lifestyle factors. Continued advances in wearable technologies, health apps, and low-cost lab tests will help drive this trend forward.
Consumers increasingly seek clean label products—those made with natural, recognizable ingredients free from additives. In the functional food and beverage space, clean label offerings reinforce the perception of health and transparency, with non-GMO and organic appealing to a smaller, niche group.
Nutraceuticals in food products are becoming more popular. An uptick in product launches like nutrition bars with ashwagandha and chocolate with reishi mushroom shows that mood and stress relief positioning is not limited to functional beverages. An indulgent snack may actually be the perfect format for a feel-good product.
Aligning functional nutrition offerings with the fast-growing wellness segments identified by McKinsey is a significant opportunity to address consumers’ greatest health needs. Choosing the right ingredients is essential.
Iron and B complex vitamins, especially vitamin B12, are extremely valuable in women’s health products, considering two in five women report struggling with their energy levels.7 In addition, adaptogens and other mood-associated botanicals are a good fit for younger women since mental health and stress are the top reported health concerns.8
"Mental health and stress is the top health concern for Gen Z and Millennial women."
— Niki Kennedy, Director of Insights & Content, Glanbia Nutritionals
| Women Ages 18-45 | Women Aged 46-75 | |
|---|---|---|
| #1 | Mental health | Overall physical health |
| #2 | Managing stress | Heart health |
| #3 | Weight | Weight |
50% of women are currently trying to lose weight. Protein and active women bioactives can play a powerful role in weight management and exercise support at all ages. There is also a big need for products focused on different life stages, such as adolescence, reproductive years, menopause, and post-menopause, with calcium a key nutrient at most stages.
Functional nutrition products can also support healthy aging in several ways—particularly those focused on mobility, strength, energy, immunity, or cognition. 49% of consumers have already made changes to what they consume to help with the aging process.9
Besides regular exercise and a balanced diet, consumers seeking to age healthily can benefit from products with added protein and healthy aging bioactives, such as dairy bioactives that provide immune and cognitive support. Collagen tripeptides, calcium, and curcumin can be used for joint and bone health positioning, while BCAAs and leucine are useful for muscle recovery.
For the 52% of US consumers trying to lose weight,10 increasing protein and fiber in the diet is essential. Innova reports how participants in a recent one-year dietary education program with higher protein and fiber intakes lost the most weight.11 Among the 7% of Americans using GLP-1 medications, protein and hydration are top of mind.12
"In any successful weight loss regimen, changes to nutritional patterns are imperative."
— Niki Kennedy, Director of Insights & Content, Glanbia Nutritionals
Brand can also fortify with zinc, due to its role in appetite and metabolism, and B vitamins for energy support. Weight management bioactives like whey protein-derived Prolibra® and dihydrocapsiate offer another approach. Furthermore, including essential vitamins and minerals in a meal replacement product and MCTs in a keto product will help meet consumer expectations for those products.
McKinsey’s research highlights a notable shift in people’s approach to fitness. For a growing number of consumers, especially Gen Z consumers, fitness is “moving from a hobby to a core part of people’s identities,” with spending expected to increase for personal training and onsite fitness classes.13 Weight loss is the main exercise driver for Gen Z women, while muscle and strength building is the top motivation for Gen Z men.14
| Men | Women | |
|---|---|---|
| Gen Z | Muscle/Strength (25%) | Lose weight (32%) |
| Millennials | Heart health (25%) | Lose weight (34%) |
| Gen X | Heart Health (35%) | Lose weight (39%) |
| Boomers | Heart Health (39%) | Heart health (37%) |
This means an increased market for traditional workout support products like ready-to-mix protein shakes and convenient workout bars and snacks. Key athletic and sports performance nutrition solutions include protein, BCAAs, and leucine for muscle building and recovery, creatine and caffeine for pre-workout energy, and hydration and electrolytes during exercise and post-workout.
Gut health is important to more than 80% of consumers in the US, UK, and China, reports McKinsey.15 Probiotics for a healthy gut microbiome balance are especially popular in the US and China,16 but prebiotic fibers like inulin are gaining ground as a way to nourish the natural gut microflora.
Fiber is a widely recognized gut health ingredient for promoting regularity and is important to nearly one in three consumers globally.17 Functional products for gut health can also include vitamin C, vitamin D, and zinc for their various roles in protecting the gut lining and reducing inflammation.
With so many factors that can negatively impact sleep—from screen time to stress—it may be no surprise that consumers are looking for support in this area. One in three Americans is getting under seven hours of sleep daily,18 with female Gen and Millennial women reporting the most trouble (followed by Gen Z men).19
Lack of sleep impacts learning, memory, and mood, and longer-term sleep disruptions are linked to several chronic diseases. Beverages and foods positioned for sleep support can include tryptophan or melatonin, magnesium, L-theanine, or botanicals such as chamomile and valerian. Effective messaging centers on improved sleep quality, overall wellness and health, and feeling focused and alert for the day.
Consumer data on functional nutrition purchases confirms the strong interest in these wellness areas. In the past twelve months, over a quarter of consumers globally have purchased functional food and beverage products for gut health (28%), weight management (27%), and energy and stamina (26%).20 About one in five have bought products for healthy aging and bone or joint health.21
As brands explore innovation to meet these varied consumer needs, using a needs framework can help simplify the process. Based on consumer insights from our Active Nutrition Consumer U&A Study, we consolidated consumer motivations for using particular products to derive a Holistic Health Needs Framework.
Using nutritional products to support steady progress toward health goals (“Build a Better Me”) accounts for the highest number of usage occasions, followed by performance and wellness optimization (“Maximize my Potential”).22 Nearly one in four occasions could be considered “Daily Health Hacks”—choosing products to help function well today.23
Mapping the market based on need spaces can also help guide brands in the choice of functional ingredients—for example, energy drinks and multivitamins for daily needs, probiotics and collagen for longer-term health goals, and creatine and protein powders for optimizing performance. Since ingredients can often fit multiple needs, there is ample room for product innovation.
To develop winning products, brands can use trends in functional nutrition and top wellness growth areas to inspire new product development. They can focus on science-backed ingredients to provide real benefits and build consumer trust. Furthermore, using the needs framework can help marketers target broader consumer segments and guide ingredient choice.
“Regardless of the format, it has to taste good. And it has to meet the consumer need on the occasion.”
— Niki Kennedy, Director of Insights & Content, Glanbia Nutritionals
Beyond providing functional support for consumers’ goals, a product also must taste delicious and be in a format that fits their lifestyle to drive repeat purchase. Offering multiple formats can expand opportunities. A ready-to-mix protein powder may be perfect for the cost-conscious consumer, but a ready-to-drink beverage or a bar may be best for someone on the go.
To learn more about functional nutrition needs and how to develop products for holistic health-minded consumers, contact Glanbia Nutritionals.
Protein fortification aligns with many top health trends by supporting weight management, muscle building and strengthening, active lifestyles, and healthy aging. Protein-fortified products also appeal to consumers of popular diets like keto and vegan diets.
Consumers’ interest in products that offer health and wellness benefits is driving the use of bioactives in foods, beverages, and supplements. This includes bioactives for immunity, energy, gut health, mood, and sleep support, aligning with the increasing focus on preventive health and personalized nutrition.
Tryptophan is an essential amino acid that the body uses to produce serotonin, a neurotransmitter that regulates mood, appetite, sleep, and other processes. Additionally, some serotonin is converted to melatonin, which specifically governs the body’s circadian rhythm, helping to regulate sleep cycles.
Custom premixes are used in many product categories to boost nutritional profiles and add functional benefits. Key applications are dairy and dairy alternatives, fortified and functional beverages, breakfast cereals, bakery products, snacks, nutrition bars, supplements, and products for sports performance, active and healthy lifestyles, and early life nutrition.
Custom premixes are blends of vitamins, minerals, botanicals, and other functional ingredients precisely formulated to meet a product's specific nutritional and functional benefit goals. They are used in dietary supplements, fortified and functional foods, and beverages.
Bioactive ingredients deliver health benefits by influencing biological processes in the body, such as supporting immune function, heart health or bone health. These compounds, found in foods, botanicals, and other sources, work at the cellular level to help promote wellness.
