Health and wellness is a massive and growing consumer market, especially when it comes to food. Forecasting shows this food segment growing by an impressive 9.4% CAGR from 2024 to 2030 as consumers continue to become more aware of the health impact of foods and beverages and change spending habits to reflect an interest in functional benefits.
For B2B food services, one major pain point lies in having two clients. Not only are you catering to the businesses you supply, but also to their consumer base. It can be challenging to create and market products that meet the goals and desires of both groups.
A good place to start is evaluating the health and wellness trends currently influencing the food and beverage landscape — and how you can successfully incorporate them into your B2B operation.
Mood and Immune Boosters
The health and wellness market has several segments, but two gaining a lot of attention are adaptogens and functional foods. What advances are dominating these segments, and how are brands excelling in their niche?
Adaptogens
Plant-based adaptogens are substances that have the potential to positively influence the body’s reaction to stressors. These active compounds, found in herbs, roots, mushrooms, and other plant materials, have become a popular addition to health and wellness foods and beverages.
Adaptogenic beverages featuring ingredients like ginseng, ashwagandha, and rhodiola are particularly popular. You can find coffee substitutes, teas, and elixirs touting these ingredients, often paired with vitamins, antioxidants, and nootropics.
MUD\WTR products, branded as a gentle alternative to coffee, typically feature a base of chai tea paired with adaptogens like ashwagandha, turmeric, cinnamon, and reishi. The company, which launched in 2018, has continued to expand its product line, with recent additions like matcha and turmeric drink mixes.
As of December 2024, the brand boasted 54 employees across three countries and an annual revenue of $3.8 million.
Related: New Year’s Health Reset: Detox Foods and Clean-Eating Plans
Functional Foods
The market for functional foods is ever-changing. While some products are geared toward specific health and nutrition goals like improved hydration, sleep, or athletic performance, the current trend seems to focus largely on boosting energy and performance in daily life. Of course, they also have to taste good.
A number of brands excel at striking this balance. Nestlé, PepsiCo, Kellogg Company, and General Mills are at the top of the list. Although these brands are better known for sugary candy, sodas, and cereals, they all have a history of product diversification.
Today, these brands offer products like beverages that improve joint function and mobility (Nestlé), a low-sugar, low-calorie version of Gatorade called G2 (PepsiCo), All-Bran Immune Care cereal to support immune health (Kellogg Company in partnership with Kirin Holdings), and high-protein cereals (General Mills in partnership with sports nutrition brand Ghost).
Diverse Applications
In addition to updating known products to include adaptogens and functional ingredients, businesses in the B2B market could see some traction by experimenting with new applications.
The global functional beverage market alone is expected to grow to $339.6 billion by 2030, a CAGR of roughly 8.6% from 2023, so there’s still a lot of room for competition in this category. Healthy snacks and grab-and-go foods are predicted to see a CAGR of 6.2% during the same period — from about $95.6 billion in 2023.
One area that has yet to be fully explored, however, is entrées. Although mains tend to inherently feature some balance of nutrients, increasing functional appeal could be a game-changer in the health and wellness B2B market.
Gaining Ground in a Growing Market
The health and wellness market isn’t new, but it’s always gaining consumer converts and is a segment of the food and beverage market that thrives on innovation. Keeping up with advances and client/consumer expectations and tapping into new applications is an ideal way to remain at the forefront of this expanding arena.
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