Understanding Better For™ You Consumer Trends
Keeping up with changing consumer habits is more important than ever. Our recent webinar, “Consumer Trends in Better For™ You,” hosted by Cara Golberg with NIQ, highlighted how these habits are evolving, especially in the beverage and snacking sectors. To truly grasp the Full View™, it’s crucial to understand what defines a product as Better-For™.
What does Better-For™ Mean?
NIQ’s Better For Segment™ introduces the first algorithm that identifies brands based on product characteristics, positioning, sales, and distribution within food and beverage categories. This automated definition ensures scalability and updates us on the latest Better For™ trends.
Leveraging robust item-level coding and NPI attributes, NIQ qualifies brands by evaluating the range of claims and certifications on their packaging. This broader definition resonates strongly with younger generations like Gen Z and millennials, who prioritize products that align with their values.
Better For™ YOU
- Healthier – Organic and Natural
- Trending Diets
- Plant-Based
- & more…
Better For™ THE ENVIRONMENT
- Eco friendly
- Bio-based
- Regenerative Agriculture
- & more…
Better For™ SOCIETY
- Fair Trade
- Fair Wages
- Animal Welfare
- & more…
The Impact on Emerging Brands
Significantly, 62% of growth in the Better For™ category comes from smaller and emerging brands that drive innovation. For instance, 16% of the beverage category and 14% of the salty snacks category in the omniverse are powered by Better For™ products from these brands, compared to only 8% in traditional trade.
Better For™ products are distributed across all retail channels, not just natural food stores. In fact, 46% of the Better For™ market share comes from conventional grocery stores. This highlights the importance of a broad market approach for emerging brands, as focusing solely on natural outlets can result in missed opportunities in conventional grocery, mass merchandisers, and other channels. With 90% of sales occurring outside the natural channel, there is vast potential in conventional grocery and other outlets, making it crucial for brands to leverage a wide distribution network for success in the Better For™
Understand Consumer Panel Data
Consumer panel data is a critical resource in market research, providing insights that go beyond simple sales figures to reveal the underlying reasons behind fluctuations in sales volumes. By examining consumer panel data, brands can identify shifts in consumer behavior driven by changing shopping habits, brand preferences, and competitive dynamics. This comprehensive understanding empowers brands to address challenges effectively and capitalize on emerging opportunities in the market.
One of the key strengths of consumer panel data is its ability to quantify the composition of market categories and track how consumer preferences evolve over time. By analyzing demographic and geographic trends within the panel, brands can better adapt their marketing strategies and product offerings to meet consumer demands.
Integrating consumer panel data with point-of-sale (POS) data (or scan data) provides a holistic view of consumer purchasing behavior. This integration highlights the impact of distribution strategies, pricing tactics, and product innovations on actual buying decisions. With demographic and behavioral insights from consumer panels, brands can develop targeted marketing campaigns that resonate with specific consumer segments, attracting new customers, retaining loyal ones, and effectively competing in the market.

Ultimately, consumer panel data offers actionable insights that drive growth and innovation. By understanding consumer preferences and market dynamics, brands can navigate competitive landscapes with agility and foresight, laying the groundwork for successful strategies in the Better For™ You product market. This ongoing data collection from consumer panels ensures businesses stay informed about evolving consumer behaviors, preferences, and trends, enabling them to make informed decisions that align with their strategic objectives and consumer expectations.
Buying Power Across Generations
It’s a common assumption that millennials and Gen Z are the primary targets due to their significant influence in today’s market. But when looking at the data, we see that boomers currently lead in total store dollar volume, followed closely by millennials and Gen X, with Gen Z contributing a smaller but rapidly growing percentage. This growth trend among Gen Z, with a notable 29% increase in spending compared to last year, highlights their emerging economic influence despite their smaller initial footprint.
The shift in spending patterns also reflects broader demographic and lifestyle changes. Boomers, now transitioning into empty nesters, are adjusting their purchasing behaviors, while millennials and Gen Z are shaping trends with their preferences for products that align with health, environmental, and societal values.
In terms of Better For™ products, millennials and Gen Z show a strong affinity, significantly outpacing other generations in their adoption and spending. This demographic preference is evident in the higher index values for better-for-you items across food and beverage categories, indicating a market ripe for innovation and targeted marketing efforts.
Exploring Better For™ Trends in Snacking and Functional Beverages
Consumers increasingly gravitate towards better-for-you options in snacking and functional beverages, driven by a dual focus on personal health and alignment with broader environmental and societal values. This shift is reshaping the landscape across food and beverage categories, influencing everything from product innovation to consumer preferences.
Better For™ Trends in Snacking:
There’s a notable uptick in demand for healthier choices across various snacking categories. Innovations in snack mixes and yogurt cater to health-conscious consumers seeking nutritious yet enjoyable snacking experiences. Traditional favorites like cookies and crackers face challenges as consumer interest shifts towards options that offer health benefits alongside taste.
Consumer acceptance varies widely across categories, with some, like sugar-free chocolates and revamped gummies, gaining popularity faster than others. This diversity underscores the complexity of consumer behavior and the varying market readiness for better-for-you products. These trends present opportunities for brands to innovate and capture market share. Categories lacking Better For™ options offer room for new products that meet health and taste expectations. Conversely, in categories where healthier choices dominate, there’s potential to expand offerings and cater to evolving consumer preferences.

Exploring Functional Beverages:
Functional beverages extend beyond essential hydration, offering specific health benefits such as energy boost, metabolic support, or enhanced hydration with electrolytes. This category leads innovation, reflecting emerging consumer wellness priorities such as food, medicine, and vitamin supplementation.
Consumers, particularly millennials, favor functional beverages for convenience and health-focused attributes. This demographic shift underscores a preference for products that support busy lifestyles while addressing health concerns beyond traditional beverages.
Demographically, functional beverage consumers tend to be higher-income individuals, often younger parents managing hectic schedules. While millennials dominate this space, there’s also engagement from Gen X and interest from boomers, albeit declining.
Regarding market dynamics, functional beverages show robust performance compared to total food and beverage categories. Growth is driven by attributes like digestive health, metabolism support, and mental wellness, indicating a shift towards products addressing specific health needs beyond basic nutrition.
Retention rates within the functional beverage category are high, with 96% of buyers retained annually, reflecting strong consumer trust and brand affinity. This loyalty underscores the category’s ability to meet ongoing consumer needs for health and wellness solutions.

Implications and Strategic Insights:
Navigating these dynamics requires a deep understanding of consumer insights and market data. Leveraging consumer panel data allows brands to uncover valuable insights into purchasing behaviors, demographic trends, and marketing strategies impact across snacking and functional beverages. This knowledge informs product development, market positioning, and customer engagement strategies.
These insights pave the way for continued innovation and strategic growth in the Better For™ snacking and functional beverage sectors. By remaining attuned to consumer preferences and market dynamics, brands can forge meaningful connections with their audience and drive sustainable growth in an increasingly health-conscious marketplace.
Key Takeaways
In conclusion, the landscape of consumer preferences within the Better For™ sector reveals a dynamic marketplace shaped by shifting health and wellness priorities. Consumers, particularly millennials and Gen Z, are increasingly drawn to products that support personal health and align with environmental and societal values. This trend underscores the importance for brands to innovate and cater to these evolving preferences, leveraging insights from consumer panel data to inform strategic decisions. By focusing on product innovation, effective marketing strategies, and broad market penetration, brands can attract new buyers and foster loyalty among existing consumers in a competitive and rapidly growing market. Understanding and adapting to these trends will be essential for brands aiming to thrive in the evolving landscape of health-conscious consumerism.
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