TL;DR: The data says yes—the Better-For movement is not a fad. Consumer demand, cultural shifts, and market growth all point to a lasting transformation in FMCG.
In recent years, the "Better-For" category has emerged as a transformative force in the fast-moving consumer goods (FMCG) industry. But for some, a key question lingers: Is this movement truly reflective of widespread consumer values, or is it just a fleeting trend? Let’s delve into the data and consumer behaviours to determine whether the Better-For category is here to stay.
What Defines the Better-For Category?
The Better-For category is characterised by products that deliver benefits across three primary dimensions:
- Personal Health: Items that are organic, plant-based, non-GMO, or free from artificial additives resonate strongly with health-conscious consumers.
- Environmental Impact: Products leveraging eco-friendly materials, sustainable packaging, and practices like regenerative agriculture tap into the demand for environmental responsibility.
- Social Responsibility: Consumers are drawn to brands with fair trade certifications, ethical sourcing, and commitments to societal well-being.
This holistic approach has positioned Better-For products as a preferred choice for shoppers seeking to make more conscious decisions.
Is the Better-For Movement a Fad?
The notion that Better-For products might be a passing trend stems from scepticism about whether the bulk of consumers truly prioritise these values. However, evidence suggests otherwise:
- Consumer Spending Patterns: Data shows that shoppers are increasingly allocating more of their budgets to products that align with health, sustainability, and ethical standards. For example, organic food sales have consistently outpaced the growth of conventional food markets.
- Long-Term Cultural Shifts: The rise of climate awareness, dietary changes, and wellness trends signals a broader cultural movement. These shifts are reinforced by younger generations, like Millennials and Gen Z, who are shaping future market dynamics with their purchasing power.
- Cross-Demographic Appeal: While early adopters of Better-For products were often health and environment enthusiasts, these products now resonate across demographics, including families seeking healthier options and older adults prioritising wellness.
The Data Speaks: Growth and Mainstream Adoption
Several key indicators highlight that the Better-For movement is more than just a niche:
- Market Expansion: Emerging Better-For brands account for 62% of growth in the category, and 46% of sales are happening in mainstream grocery stores—not just specialty or health-focused retailers. Brands like Proper Crisps and Oatly exemplify this shift, reaching consumers through both health stores and supermarkets.
- Consumer Willingness to Pay More: Studies reveal that a significant portion of consumers are willing to pay a premium for products perceived as healthier or more sustainable. For instance, eco-friendly household items like Ecostore’s cleaning products show consistent growth.
- Product Innovation and Longevity: Major players in the FMCG space are investing heavily in Better-For product lines, reflecting confidence in the category’s staying power. Consider companies like Whittaker’s, which have introduced sustainable practices and fair trade chocolate options, appealing to conscious consumers.
Implications for FMCG Brands
For brands in the FMCG space, it’s clear that the Better-For movement isn’t just a passing phase but a shift in consumer expectations. Brands should consider the following:
- Innovation is Non-Negotiable: Staying competitive means continuously improving product offerings to align with Better-For values.
- Transparency Is Critical: Consumers expect clear labelling and honest communication about product benefits and sourcing.
- Broader Reach: Better-For products are no longer limited to niche markets. Brands must adapt their distribution strategies to reach mainstream consumers effectively.
The Verdict: A Movement, Not a Moment
The Better-For category reflects a long-term transformation in how consumers think about their purchases. Far from being a fad, it’s driven by deep-seated cultural, environmental, and health-conscious values that are unlikely to fade. For FMCG brands, embracing these principles isn’t just an opportunity—it’s a necessity for future growth.
At Calico, we specialise in helping FMCG brands craft compelling stories and designs that connect with today’s conscious consumers. Whether you’re looking to refresh your packaging or launch a new Better-For product line, our team is here to guide you every step of the way. Let’s create something better—together.
