NEW YORK — Consumers are increasingly seeking functional products that go beyond just hydration and energy, with a particular interest in products that can help improve sleep quality, according to new research.
A recent consumer survey conducted by market researcher Knit identified a significant gap in innovation opportunities in the market, particularly in areas where existing products are not meeting consumer needs effectively.
Out of the 509 US consumers surveyed, 33.5% identified sleep as the most challenging need to address, while 45% expressed a strong desire to improve their sleep quality.
The survey found that a melatonin-free sleep gummy priced at $29.99 garnered the highest appeal among respondents, with 80% expressing interest, 65% indicating purchase intent, and 72% perceiving credibility.
Aside from better sleep, consumers also prioritized managing everyday stress, feeling energized without jitters, and maintaining focus and mental sharpness.
According to Liam Hickey, Knit’s head of research, younger consumers, in particular, are increasingly focused on addressing these needs due to the evolving nature of the world around them.
The survey highlighted two key areas of opportunity for CPG manufacturers to innovate: restoration and mental performance. Hickey emphasized the importance of addressing the root causes of consumer needs in developing effective product solutions.
One of the main shortcomings identified by the survey was the perceived lack of value and tangible benefits from functional products. Consumers expressed concerns about high prices, unclear effects, and skepticism about product claims.
The survey categorized consumers into three groups based on their approach to functional products: Reactive relievers, Biohacker optimizers, and Skeptical casuals. Each group exhibited different preferences in product formats, with bars and snacks being popular among Reactive relievers and Biohacker optimizers.
As consumer awareness of the relationship between diet and well-being grows, the demand for functional products is expected to increase. However, Hickey stressed the ongoing need for education to help consumers make informed choices.
For brands looking to enter or compete in the functional products market, understanding consumer needs and offering holistic solutions may be key to success. Hickey suggested that addressing specific consumer problems and providing interconnected solutions could help brands stand out in a crowded market.
Knit’s survey revealed that a majority of respondents had purchased food or drinks with added health benefits and supplements in the past two months, indicating a strong interest in functional products among consumers.
The study sample consisted of a diverse age group, with respondents from Gen X, baby boomers, millennials, and Gen Z, highlighting the broad appeal of functional products across different generations.