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Leading brands like PepsiCo are responding by trialing sunflower oil and palmolein as replacements for palm oil in their popular Lay’s chips. This move addresses health concerns and reflects a growing trend where consumers seek transparency in product ingredients. It is essential for brands to communicate these changes effectively, as Mintel’s latest consumer data indicates that 50% of metro-dwelling consumers consider snacks made with palm oil unhealthy, and 39% of palm oil-free claim seekers are willing to pay more for such products. This clearly indicates that the palm oil-free claim will likely gain more traction in the future.

Social media influencers are playing a pivotal role in this shift by inspiring consumers to scrutinize product labels and reduce their intake of unhealthy fats. Influencers like Revant Himatsingka, known as Food Pharmer, highlight the ubiquity of palm oil in packaged foods and urge consumers to cut down on its usage for health and environmental reasons.

Mintel Global New Products Database (GNPD) highlights that this trend is further evidenced by the increase in launch activity for palm oil-free snacks, which has grown from a near non-existent 0.1% of launches five years ago to 2.4% of total launches in the last 12 months. Smaller brands are currently leading the way in leveraging this claim to differentiate themselves as providers of healthy snacks.

Looking ahead, the palm oil-free claim is expected to become more prevalent in the Indian snacks market. As the focus on preventive healthcare grows, and with the prevalence of non-communicable diseases on the rise, consumers are taking steps towards healthier eating habits. This includes a growing interest in foods with healthy fats, which could drive brands to introduce more palm oil-free options and highlight healthier oils in their products.

In terms of alternatives, rice bran and groundnut oils are leading the way as replacements for palm oil in the Indian snack space. Other oils like mustard, sunflower, and coconut oil are also considered healthier options by consumers. Brands are also seen responding by calling out the type of oil used on the front of the pack, which not only strengthens the palm oil-free claim but also helps build consumer awareness about healthier alternatives.

As the trend continues to grow, it’s crucial for brands to educate consumers about the types and benefits of healthier oils. There is a need to build awareness, as some consumers still opt for refined oil, not realising that it is not a specific type of oil and that any oil, including palm oil, can be refined.

Here are five strategies for brands to capitalize on these trends:

Highlight Healthier Oil Alternatives: Brands like Let’s Try and WellBe have successfully used groundnut and rice bran oils, respectively, and have communicated this on their packaging. This not only strengthens the palm oil-free claim but also educates consumers about healthy oil options.

Target Metro Dwellers: Metro city dwellers are more concerned about the health impact of palm oil and are driving the demand for palm oil-free salty snacks. Brands should focus on this demographic, as 50% of metro consumers believe snacks made with palm oil are unhealthy, and 39% are willing to pay more for palm oil-free products.

Explore Regional Preferences: Different regions in India have varying familiarity with cooking oils, which can influence consumer choice for palm oil alternatives. Understanding these preferences can help brands tailor their products to regional tastes.

Address Pricing Concerns: While there is a willingness to pay more for healthier options, the majority remains undecided. Brands need to find a balance between health benefits and cost-effectiveness to convert interest into purchase.

Educate Consumers: There is a lack of clarity among consumers regarding healthier oil alternatives. Brands have an opportunity to build trust by educating consumers on the types and benefits of healthier oils used in place of palm oil.

In conclusion, the palm oil-free movement in India’s snacks market is gaining momentum, driven by health-conscious consumers and influencer advocacy. As awareness increases and more brands enter the space, we can expect this trend to become a significant factor in consumer purchasing decisions, with a range of healthier oil alternatives taking centre stage in product formulations.

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Cheese is a versatile food that fits into both the savoury and sweet categories. It can be used for sandwiches, entrees as well as desserts. It can also be a snack for kids and adults alike. The cheese industry has many offerings for different ages and taste profiles. Cheese is consumed by one-third of Indians; Gen Z (39%), Millennials (34%) and women (33%) are the core users according to Mintel research. While cheese shares a strong association with taste, it is perceived to be expensive by users and non-users alike.

When it comes to preferences for different types of cheese, 63% of Indian cheese consumers enjoy processed cheese, while 19% like cheese sauce and 15% savour the taste of cream cheese.

The cheese landscape in India is undergoing an evolution driven by the growing sense of food adventure among Indian consumers, whether it is dining out or preparing special meals at home. Though processed cheese dominates the category, it is interesting to note that 37% of cheese consumers have indulged in one or more types of specialty cheese. Moreover, as consumers’ tastes evolve, they tend to switch from processed to specialty cheese.

The consumption of processed cheese is lower among specialty cheese users as compared to the total average (29% vs 63%). Mozzarella is the most consumed specialty cheese among these consumers (52% vs 19% of the total sample) followed by feta cheese (36% vs 13% of the total sample).

Mintel research further reveals that Indian consumers are willing to pay a premium for select features in cheese made for kids, including health benefits. Among parents of children under 18 years old, who have consumed cheese in the last three months through May 2023, nearly half (47%) said they would pay for all-natural cheese. Other features they would pay a premium for are high protein content, creamier texture, added vitamins and minerals, good for brain/cognition, and cheese with fruit filling.

In India, cheese is more popular as a flavour enhancing ingredient in local foods such as dosa and pav bhaji, but not as a snack option. Only 19% of cheese users (and 10% of the total sample) think of cheese as a good snack option, presenting an untapped opportunity for brands to explore. Brands can position cheese as a wholesome snack that is both tasty and nutritious. For this, they can target millennials, metro dwellers and those living in the western region of India as they are more inclined to consume cheese as a snack.

Another avenue for growth is leveraging the indulgence aspect of cheese. With 67% of Indian snackers saying that having a stressful life has made it more important to treat themselves, cheese can offer comfort as an indulgent treat. Mintel’s 2023 Food and Drink Trend Unguilty Pleasures highlights how brands can position pleasurable food and drink as essential comforts in difficult times, as opposed to guilty pleasures.

Insights from social listening platform Infegy reveal that conversations around mozzarella cheese peaked in India during the pandemic, with 97% overall positivity. This interest is expected to persist as Indian consumers become more exposed to global cuisines and increasingly influenced by social media. Artisanal cheese, often featuring fruits and nuts and enjoyed with a glass of wine, has been cropping up in the Indian market recently. The demand for mozzarella primarily comes from Gen Z. Data from Mintel Global New Products Database (GNPD) shows that mozzarella cheese launches have risen gradually, albeit from a small base, over the last five years to June 2023. There is an opportunity to ride on the popularity of mozzarella cheese in India and diversify its applications beyond pizza.

Indian consumers are increasingly focused on boosting their protein intake to lead healthier lifestyles and brands are responding by offering greater value through high protein claims. Notably, in India, food launches featuring high/added protein have increased from 5% to 9% over the last five years to May 2023 as per data from Mintel GNPD. In contrast, the global market has seen only a marginal growth of nearly 1% in such launches during the same period.

Cheese, while known to be high in fat, is considered a good source of protein by over a third (36%) of Indian cheese consumers, while 40% agree that cheese is a better source of protein than milk.

Affordability is a key factor influencing consumers’ food choices. Given that cheese users perceive cheese as a premium product, making it accessible to a wider consumer base poses a challenge. With India being a price-sensitive market, 74% of consumers who claim to be financially tight haven’t consumed cheese in the last three months.

Brands have various opportunities to make cheese more appealing to Indian consumers, not only in terms of taste but also in nutrition and affordability. Cheese can be made a part of a healthy snack routine when working from home. When cooking, cheese can add an umami flavour to food because of its high glutamate content. Cheese can also be the hero ingredient of special meals enjoyed at home. After all, it hits a sweet spot between taste and nutrition

The writer is Food and Drink Analyst, Mintel Reports India

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According to Mintel research, vegetables, fruits, and proteins are the top ingredients of interest in functional foods. Not only are these ingredients familiar to consumers, but they also have an inherent health halo around them. This makes them the most suitable candidates to incorporate into foods with health benefits.

As the post-pandemic interest in health and wellness continues to influence consumers’ food purchases, there is traction for functional foods catering to various benefits, from energy and immunity boosts and sleep aids to digestive health improvement and mood and beauty enhancement.

The growing awareness of the importance of good health has led consumers to scrutinize product labels, seeking information on ingredients, nutrition content, and health claims. In fact, Mintel research shows that 52% of Indian consumers expect a brand offering healthy food/drink to provide healthy ingredients, and 46% are keen on ingredient transparency.

As consumers become discerning about their food purchases, especially regarding products with health benefits, it is crucial to understand the ingredients that captivate consumer interest. This can inspire new product development and guide brands in spotlighting key ingredients on the packaging.

According to Mintel research, vegetables, fruits, and proteins are the top ingredients of interest in functional foods. Not only are these ingredients familiar to consumers, but they also have an inherent health halo around them. This makes them the most suitable candidates to incorporate into foods with health benefits. Working women gravitate towards vegetables and fruits, while metro dwellers show keen interest in proteins. Furthermore, millet and ayurvedic herbs are emerging ingredients of interest.

Fruits and vegetables strengthen the healthy image of functional foods

Indian consumers appreciate fruit and vegetable content for their wholesomeness and the diverse range of health benefits that they can offer.

At least three in 10 consumers link fruit/vegetables with heart, immune, and digestive health. Notably, the association of fruit/vegetables with gut health is stronger than that with fibre and probiotics, and the link with immunity is more pronounced than that with vitamin C and protein.

Indian brands can take inspiration from their counterparts in the Western markets in using fruit and vegetable content to improve the functional quotient of food products. For example, Wholy Greens Glorious Carrot Veggi Pasta from Belgium uses vegetables as a natural source of micronutrients. This product has carrot as a key ingredient, claiming gut, immunity, and energy benefits.

Mintel research also reveals that a combination of vegetables and protein will have a more significant impact, drawing the attention of nearly 3 in 4 consumers.

Fruits can be used as the sole ingredient, or a key ingredient, that contributes to micronutrient content and flavor.

In the US, General Mills Cheerios Apple Cinnamon Cereal has wholegrain oats and apple purée as key ingredients, with added vitamins and minerals. Similarly, Optimel Peach-Passionfruit Yogurt is a high-protein product for weight and muscle gain in Denmark. It has peach and concentrates of passionfruit, lemon, and peach juice to add to its health value and flavor.

Leverage interest in protein

Indians are keen to increase their protein intake, with 34% citing high protein content as one of their top three most important factors when shopping for food. Nearly half of consumers, particularly the young and affluent, want protein as an ingredient in functional foods.

More than a third of consumers enthusiastic about protein as an ingredient seek more information about the amount and source of protein. In offering protein-rich food products, brands can take the next step and highlight this additional information to engage with consumers, particularly metro dwellers.

The Health Factory offers vegan high-protein bread from plant-based sources, and Happy Jars Sprouted Dal & Beetroot Chilla Mix boasts 20g of plant protein with claims of multiple health benefits.

Traditional ingredients are emerging

Ayurvedic ingredients are gaining traction, with over a quarter of Indians saying they intend to spend more on food and drink products with such ingredients. For instance, 34% of consumers, particularly the financially healthy segment and those living in West India, are keen on functional foods with ayurvedic herbs.

In line with Mintel Trend Culturally Connected, traditional food and ingredients, as they would’ve been prepared in ancient times by Indian ancestors, can be used to deliver health benefits and be a source of comfort.

Local brand Vedically offers Ashwagandha Organic Ghee, which is said to have more benefits than regular ghee and claims to reduce stress and anxiety while boosting immunity and vitality. Family Fit Sugar by Guud is made of cane sugar fortified with soluble dietary fibre, a herb blend, Stevia, and magnesium. It claims to positively impact digestive and bone health, detoxing, and blood sugar and weight management.

Millets are making a comeback as consumers begin to recognize the benefits of traditional eating. Grami Superfoods Renergee Spinach Flavoured 9 Millets Instant Soup claims to be the world’s first millet-based soup. It maintains satiety, helps in weight management, and is high in protein and natural dietary fibre, making it a natural energy booster.

Consumers seek scientific validation and trust

Today, consumers rely more on scientific evidence than reviews, brand assurances, and celebrity endorsements. For brands, value in terms of efficacy can be communicated via different routes.

Products that furnish science-based or clinically verified facts and figures are more likely to win consumers’ trust. For example, Cholesterol Lowering Original Spread (New Zealand) is a vegan-friendly spread with plant sterols clinically proven to lower cholesterol by up to 10%.

What’s next

As consumers prioritize holistic wellness, the key to success lies in understanding their preferences and delivering functional foods that cater to their diverse needs.

In the dynamic landscape of functional foods, vegetables, fruits, and proteins take center stage as sought-after ingredients. The fusion of traditional wisdom with modern science is evident in the rise of Ayurvedic ingredients. Brands that provide transparent information and scientifically validated products are poised to thrive in this evolving market. ###

The writer is Food and Drink Analyst, Mintel Reports India

Product image sources: Mintel GNPD

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