Key Trends in Functional Foods for 2024 – SpaChina
Annual Health Trends Research Series One, Reported by Fifi Kao
According to the latest consumer research from the American publication “New Nutrition Business,” approximately 21% of Americans claim to be taking food that can improve their emotional and mental health. The research report states that young people are more inclined to seek functional foods that are beneficial to their mood and mental well-being. Among them, the age group with the highest number of consumers is 25-34 years old, accounting for 30%, while the demand from other age groups is not significant. In fact, only 12% of people aged 65 and above, who need to further improve their nutritional status, choose such functional foods.
SpaChina’s research on nutritional supplements and functional foods at the end of 2023 also shows that Chinese people in the age range of 25-40 are increasingly eager to obtain health benefits from functional foods. Unlike the health products that were prevalent in the past 20 years designed for preventing disease, today’s Chinese consumers have a high interest in foods that aim to improve emotional states and help cope with stress and anxiety, and improve metabolism and sleep issues. The top preferences include probiotics, whitening products, and collagen.
Survey participants believe that these needs are urgent and are prioritized high in their daily to-do lists. However, SpaChina also learned that 66% of them value the brand endorsement of these functional foods and nutritional supplements. 83% believe that having new technological advancements and expert patents to aid in the effective absorption and enhancement of product efficacy is crucial. Nevertheless, efficacy remains the ultimate goal, as 99% consider it the final objective. 42% are willing to obtain products from acquaintances with experience, and 34% are willing to purchase from offline channels such as fitness centers and SPA businesses they frequently visit.
Interestingly, the number of customers willing to purchase functional foods and nutritional supplements directly online is less than expected, standing at only 48%. But among all survey participants, 94% express a willingness to continue purchasing online if they first experience the product offline before making a repeat purchase online.
Gut health plus
Unlocking the potential of probiotics
The connection between probiotics and the gut-brain axis has been widely discussed in mainstream and social media, establishing probiotics with a widely accepted health halo. Consequently, many fermented dairy brands are now focusing on probiotics, digestive health, and immunity. We believe that, beyond products with digestive benefits, the addition of products offering mood-enhancing and cognitive benefits will be a future trend for many probiotic brands to enhance their appeal.
A notable example is Yakult 1000, introduced in 2021 by Japan’s Yakult Honsha. This beverage contains Lactobacillus casei strain Shirota, the same strain used in the original Yakult probiotic dairy drink. However, Yakult 1000 has the highest concentration among all Yakult drinks and is claimed to alleviate temporary stress, improve sleep quality, and, of course, provide the essential gut-regulating effects of probiotics.
Yakult, a globally successful probiotic dairy drink producer and marketer, has been in operation since 1935. With an annual sales revenue exceeding 2.5 billion USD, it is a major brand in Asia and South America, with sales in the United States surpassing 130 million USD and continuously rising. Yakult (China) Group has been present in mainland China for 21 years, with 52 subsidiaries and 7 production bases. One of their most successful products in the past two years, Yakult 1000, has achieved global sales exceeding 8.5 billion USD.
While some may attribute the success of Yakult 1000 to the company’s strength and robust marketing, it underestimates Yakult’s understanding of health trends and the health knowledge of its local Japanese consumers. Japan has traditionally been a leader in the health industry, and consumers have been familiar with probiotics and their benefits since the 1950s.
The main controversy surrounding the product is its claimed effects on “mood and mind,” which is challenging to evaluate without firsthand data from users. However, the remarkable growth and strong repurchase rates seen on Japanese social media suggest that consumers highly value these additional benefits. The only guarantee for repurchase lies in the “actual effects” produced and a “reasonable price” suitable for long-term consumption by consumers. https://www.yakult.co.jp/english/inbound/yakult/
Another company driving health industry transformation based on scientific principles is Probi, headquartered in Sweden. The company recently launched a product called Probi® Sensia, claiming to address mood, sleep, and stress issues. According to the company, this market has grown by 30% in the past five years.
Probi® was born out of a research project at Lund University in Sweden, initially focused on developing and exploring whether special probiotics could improve treatment outcomes and enhance the recovery chances of critically ill patients. The project, which began in the mid-1980s, was successful, leading to the filing of a patent application for the most researched strain to date—Lactobacillus plantarum 299v (LP299V®). In 1991, Probi® was officially established.
In 1994, Probi® developed a fruit drink called ProViva, based on the LP299V® strain, which entered the commercial market in Sweden. In 2005, the company introduced Probi® Digestis, a concept product for gut health. In 2010, they launched Probi® Defendum, an immune health concept product. A year later, they signed the first dietary supplement agreement with the United States, officially commencing rapid expansion in the North American market. In 2016, after repeated clinical studies on the impact of probiotics on iron absorption, the company launched Probi® Iron Absorption.
After the acquisition of the American company Nutraceutix in 2016, Probi® truly became a vertically integrated company involved in probiotic research, fermentation, production, quality control, regulation, marketing, and sales. In 2018, Probi® entered a new health field, developing and launching a clinically validated probiotic concept product, Probi® Osteo, beneficial for bone health. The latest product, Probi® Sensia, once again draws attention to the booming probiotics market post-pandemic.
China’s first probiotic company listed on the A-share GEM in 2020, Kanger Biotech’s brand “Probiotics and Beauty,” has established the largest lactic acid bacteria strain library in Asia. Based on Chinese dietary habits, living environment, and metabolic levels, the company has developed a diverse range of probiotic products addressing gut health, sleep, immunity, oral and skin care, and chronic diseases. Actively collaborating with the spa and beauty industry, they provide personalized products through individual testing, receiving widespread acclaim. https://www.probi.com/solutions/probiotic-portfolio/probi-sensia/
Neuro-immune boost
The mushroom craze
An increasing variety of mushroom species seem poised to play a significant role in the emerging market focused on mood and mental well-being.
One of the recent stars is Lion’s Mane mushroom (Hericium erinaceus), a fungus with a distinctive appearance deeply rooted in traditional Chinese medicine. Among its highlighted health benefits is its potential to promote neural health. Lion’s Mane is believed to be beneficial for the nervous system, aiding in memory improvement and cognitive function. It contains Nerve Growth Factor (NGF), a protein that supports the growth and maintenance of nerve cells. Additionally, its polysaccharides hold the potential to enhance the immune system, helping combat infections and diseases. The presence of polyphenols and phenolic compounds also contributes to its antioxidative properties. Some studies suggest that Lion’s Mane may have a regulatory effect on blood sugar levels, potentially aiding in the prevention and management of diabetes.
SpaChina’s research indicates that consumers in the 25-40 age group, who actively seek information from various sources on functional health foods, are primarily motivated by mood and mental well-being. Social media is a crucial platform for information exchange among these young and informed consumers. A noteworthy finding is that 95% of these consumers have already decided on the product ingredients and benefits they are seeking before making a purchase.
In a market driven by mood and mental well-being, it is not the market that propels it forward but rather consumers autonomously influencing each other. The founder of Forij, a brand that produces oatmeal with Lion’s Mane, shares a sentiment similar to traditional Chinese medicine practitioners: “We want to inform everyone about the benefits of Lion’s Mane, but our efforts to educate have seen little attention. However, end buyers usually come in reverse, looking for nutritional supplements that support brain and nerve health, finding Lion’s Mane, and ultimately purchasing oatmeal with added Lion’s Mane or seeking other foods related to Lion’s Mane.”
Forij, based in Seattle, is a startup that has created oatmeal with a more palatable texture by incorporating Lion’s Mane. Launched in 2020, the product is available in stores like Sprouts and Albertsons in the United States. https://www.forij.co/pages/our-mushrooms
SpaChina’s research further reveals that the most trusted mushrooms among Chinese consumers are Lingzhi (Reishi) and Cordyceps. These two highly regarded medicinal mushrooms are popular across all age groups. While various health supplements flood the market, with some commanding high prices, functional foods incorporating mushrooms are relatively scarce. Research suggests that this is often linked to Chinese dietary habits, where hot meals remain a primary focus compared to the more snack-oriented preferences in Western cultures. However, 33% of individuals in the 20-40 age group express a willingness to have such breakfast options, 27% are open to snacks for energy replenishment during physical activities, and 40% hope for afternoon tea snacks with similar health benefits.
Sleep and joy
Natural functional gaba and anthocyanins
Ensuring a joyful mood ranks high in research findings, with 97% expressing a desire to eat in a pleasurable and stress-relieving manner. This quest for pleasure has permeated various snack categories, with chocolate and sweets being popular choices for boosting mood. In the realm of functional products, chocolate stands out as a high-quality ingredient, with 46% of surveyed consumers understanding the nutritional and health benefits of dark chocolate. Chocolate has evidently become a food that makes people feel better.
In Japan, confectionery giant Ezaki Glico revamped and introduced its GABA chocolate brand in 2019, claiming to alleviate stress. GABA (Gamma-Aminobutyric Acid), a neurotransmitter, naturally occurs in low levels in chocolate. The recommended consumption of GABA in the chocolate is 28 mg, known for its calming effect on the nervous system to alleviate anxiety.
Ezaki Glico’s promotional strategy emphasizes the natural presence of GABA in chocolate as a completely natural functional ingredient. The company recently increased the proportion of this ingredient in their latest “Mental Balance” chocolate to further assist consumers in realizing these benefits. While the brand was first introduced in 2005, it saw a significant surge in success after a rebranding and product line expansion in 2019, coinciding with the emotional lows and depression caused by the pandemic. Today, this mood-enhancing chocolate can be found in every convenience store and supermarket in Japan. https://www.glico.com/global/
SpaChina’s research also indicates a growing preference for chocolate among the younger population due to the sweet and joyful sensations it brings. Pierre Marcolini, hailing from Belgium, entered China in 2016 and rapidly gained a fan base with his perfect textures and artistic designs. Presently, with 10 stores successfully established in Shanghai, Hangzhou, Nanjing, Beijing, Chengdu, Shenzhen, and Sanya, he was invited to be the dessert chocolate partner for the 2023 SpaChina Summit, promising unforgettable highlights. https://eu.marcolini.com/en/
Another brand leveraging the advantages of natural functional ingredients is Ārepa, headquartered in New Zealand. Grounded in neuroscience, they collaborated with top neuroscientists and food technology experts to develop the Ārepa formula, introducing a beverage with active ingredients including New Zealand blackcurrant, a specific variety with very high anthocyanin content, Enzogenol® pine bark extract, and L-theanine from green tea. The company invested in researching the cognitive health benefits of its ingredient combination, branding its functional drink as “The Brain Drink,” aiming to “maintain clear thinking” and “help alleviate brain fog, enhance attention, reduce stress, and overcome mental barriers.”
Ārepa stands as a testament to commercial success. Five years after introducing its beverage, it now graces the shelves of supermarkets, gas stations, and convenience stores in Australia and New Zealand. The brand’s triumph is attributed to the noticeable differences’ consumers experience when drinking this beverage, coupled with the alluring appeal of its entirely natural formula.
The brand’s success is rooted in its commitment to “all-natural” ingredients, exceptional taste, outstanding packaging, and a clever marketing approach infused with scientific elements. This winning combination propelled Ārepa into the markets of Singapore and Japan at a rapid pace.
Explore more about Ārepa’s offerings and journey on their official website: https://drinkarepa.com.au
Maintaining youth
Collagen, proteins, and amino acids
Women of all age groups, especially Generation Z and the younger Millennials, have shown a keen interest in the benefits of collagen, recognizing its positive effects on skin, hair, and nails. Many young individuals adhering to a vegetarian lifestyle also describe it as a plant-based nutritional supplement. Collagen has become a staple for many in their morning routine, and even Nestlé has joined the collagen business.
Collagen, a valuable protein, also holds promising growth prospects. Consumers worldwide, driven by the desire for “something that works for me,” are open to innovations related to collagen.
Some brands are beginning to realize this potential. For instance, norwegian bone broth brand freja, in its product line of chicken and bone broths, not only highlights the benefits of collagen for skin, hair, nails, and joints but also introduces consumers to broader advantages such as reducing inflammation and improving gut health, along with the potential emotional and cognitive benefits provided by amino acids. For example, freja explains how glycine can promote better sleep, and the importance of amino acids as building blocks for proteins in supporting gut health. Glutamine is an essential amino acid the body needs to support intestinal mucosa. Evidence suggests that glycine and proline help improve digestion, reduce inflammation, and promote the growth of beneficial gut bacteria. Https://frejafoods.Com
The demand for collagen is unlikely to diminish. Spachina, through tiktok keyword searches and data, has found that collagen remains at the top in terms of search frequency. This indicates that people constantly seek things that make them feel good about themselves and enhance their well-being, leading to repeated purchases after witnessing the effectiveness. As more benefits of collagen are discovered, it is predicted that future market demand will continue to grow.
Ketogenic diet
A healthy metabolism revolution
Metabolic syndrome, a combination of overweight, high fat levels, high blood sugar, and high blood pressure, is now becoming prevalent, especially among the younger generation. It can be considered more of an epidemic than a chronic disease.
A new term, “metabolic health,” has emerged in Europe and the United States. While many people may not precisely understand what it refers to, they are aware that they don’t want to be overweight, diagnosed with diabetes, or have high blood pressure at a young age.
Over the past decade, research on the link between metabolic health and various mental disorders has increased. The field known as metabolic psychiatry or nutritional psychiatry suggests that mental health is closely related to the body’s metabolic status, to some extent. Metabolic syndrome can affect emotions and mental well-being, leading to profound harm, with each influencing the other, creating a worsening situation.
Improving mental well-being is crucial, but in such cases, nutritional intervention for metabolic syndrome becomes even more important. One significant and effective dietary approach gaining popularity over the last decade is the ketogenic diet. Originally designed in the 1920s as a medical diet for individuals with epilepsy, the ketogenic diet reduced seizure occurrence by 85%, and it is still prescribed in medical settings. Today, it is widely used in dietary plans for weight and sugar reduction.
Researchers are extensively studying the potential beneficial effects of a low-carbohydrate, high-fat diet on various mental health conditions. One advanced area is the treatment of Alzheimer’s disease, an increasingly threatening epidemic with the aging population. There is ample literature supporting the role of brain insulin resistance in Alzheimer’s disease, to the extent that some researchers refer to Alzheimer’s disease as “Type 3 diabetes.” Hence, dietary intervention becomes increasingly important.
While the topic may seem specialized and medical, SpaChina found that 98% of the surveyed individuals expressed a preference for understanding more nutritional knowledge from a medical and professional perspective, applying it more or less effectively to their daily diets. Of these individuals, 37% mentioned following health-related platforms on social media, similar to “Dingxiang Doctor,” for health knowledge relevant to their daily lives.
Blood sugar impact
Interconnected relationships among blood sugar, mood, and weight
The trend of “better mood plus healthy weight” in dietary choices has seen rapid growth due to consumer interest in better blood sugar management. This is a hot topic on social media, with influencers like the Glucose Goddess leading the way. With over 2.8 million followers, Glucose Goddess is a serious and trustworthy influencer with degrees in biochemistry and molecular cell biology. Her website’s slogan is “Magic starts here. And it’s all science.”
She began researching the relationship between what you eat and how you feel, driven by her own struggles with poor mood. She shares perspectives on different food combinations to help manage blood sugar fluctuations, ultimately leading to better mood by managing these fluctuations. As a result, she has become a credible source for many young consumers seeking help and reliable information, making her social media platforms highly popular.
Regarding the interconnected relationships among blood sugar, mood, and weight, SpaChina found that 78% of the surveyed individuals in China are significantly concerned about these three aspects. It seems that the surveyed individuals, compared to the previous generation, are more prone to appearance and health anxiety. Additionally, the trend of younger individuals experiencing high blood sugar and high blood pressure is becoming more evident.
Many food companies are planning to launch products for better blood sugar management, with some even developing improved meal replacements for diabetics. There is indeed a vast market space to create functional food formulations that contain fats or proteins, but minimal or reduced sugar, allowing for delicious consumption without causing blood sugar spikes and deriving health benefits, whether in weight maintenance or mental health. Overall, proteins, especially dairy, have a competitive advantage due to their low impact on blood sugar.
General Mills’ Good Measure snack brand offers a variety of nutrient-rich snacks marketed as “Blood Sugar Friendly Snacks,” which are delicious and contribute to maintaining stable blood sugar. https://allingoodmeasure.com
Additionally, there’s NotCo, a plant-based company that uses artificial intelligence (AI) to design its products. They have launched a precisely calculated energy bar marketed as “helpful in regulating blood sugar” while showcasing its plant protein content. Although it might be somewhat ahead of its time, considering the growing trend of vegetarianism in Europe and the United States, NotCo’s concept addresses the needs of many vegetarians. https://notco.com
Embracing fat
Holistic beauty and mind-body benefits
SpaChina’s research results reveal that 94% of the surveyed individuals were previously unaware of the interconnectedness between the body and mind. Upon learning about the connection between the mental and physical aspects, 67% of the surveyed individuals expressed a strong interest in understanding functional foods and nutritional supplements that could simultaneously benefit both the body and mind.
SpaChina’s research also discovered that, despite “slimming down and losing weight” remaining key health keywords, the age group of 20-35 is increasingly unconcerned about fat intake. Among 100 individuals in this age group, 64% believe their body shape is good and don’t mind consuming more fat in their diet. They understand the importance of balancing proteins, fats, and carbohydrates in their diet for overall health.
This age group is at the forefront of shedding the fear of fat, as evidenced by research findings from HealthFocus International, a consumer insights company based in the United States. In the U.S., only 21% of those aged 18-29 consider reducing fat as healthy, compared to 47% among those over 65. Young consumers are driving the success of brands like LoveGoodFats, which has grown from zero to $200 million in sales within five years. LoveGoodFats chocolate bars typically contain 13g of fat per 40g serving.
LoveGoodFats plans to integrate weight management and better mood into the same product in the future. Their market commitment involves reducing carbohydrates, increasing the combination of fats and proteins, and providing “better blood sugar” to enhance both physical and mental well-being. Through social media, LoveGoodFats aims to establish strong connections with the health beliefs of many young consumers. Interestingly, these products will not come with weight management guarantees but will focus on making products healthier and more appealing through scientific formulations. https://lovegoodfats.com/
SpaChina observes that emerging scientific and nutritional theories are spreading rapidly through online social media and word of mouth. This phenomenon reflects consumers’ increasingly diverse beliefs about food and health, showcasing how every unique health food and beverage company is driving the process of “conducting its own health research.”
Looking ahead to the next decade, more health-related information will likely be disseminated through social media. According to SpaChina’s research report, the current percentage of obtaining desired products online is 48%, with 60% being consumers aged 20-35. In the United States, 52% of individuals aged 18-34 acquire food and health advice through social media. For them, social media is the mainstream media. This demographic is set to expand in the next 10 years, making online brand marketing, health education, convenient purchasing, and after-sales service indispensable.
Conclusion
Nutritional science is continually evolving, and what were once considered marginal ideas a decade ago are becoming mainstream today. The best examples are the changing perspectives on sugar and saturated fats. When offering consumers the most valuable health advice, new ideas emerge, potentially creating new markets. Most of the successful brands and cases mentioned in this article come from innovative thinking, responding to market demands, and providing scientifically credible health benefits that align with the convenience, diet, and lifestyle preferences of the younger generation. To a large extent, this is also a reinvention and recreation of traditional foods and products.
In the future, many mainstream nutritional rules will likely undergo further changes as science progresses. This change will also bring about a shift in our inherent ways of thinking. Only those willing to maintain an open mind can create businesses that are entirely new, interesting, and adaptable to change.
Survey targeted participants
SpaChina gathered 300 respondents from readers in five cities: Shanghai, Beijing, Chengdu, Hangzhou, and Shenzhen. The participants were divided into three age groups: 20-35 years, 36-45 years, and 46-60 years, with 100 individuals in each group. They all participated in the research on functional foods. The average annual household income per person was a minimum of 250,000 RMB.