For leaders in the CPG sector, a big question in health today is this: why is the nation getting less and less healthy, despite knowing more about diet and lifestyle than ever before?
Since the 1970s, obesity has been rising steadily. We now have endless products, advice, and tools for healthier living. Yet the nation continues to get sicker.
This is what we call “The Health Paradox”.
Conventional wisdom says each of us must take responsibility for our health. That’s true, but and we also need help from the government, retailers, and manufacturers. And here lies the uncomfortable truth: the biggest profits are likely to come from processed products.
The Pharmaceutical Shortcut
One of the most common questions from the consumer goods industry is: How will Ozempic and other weight-loss drugs affect food and drink sales and CPG innovation?
Right now, there’s more money going into drugs and surgery than tackling the real issue: how and what people eat. Foods high in fat, salt, and sugar are cheap, available everywhere, and are consumed in excess. The excess consumption is a normal response by normal people in an abnormal food environment.
Self-regulation by manufacturers hasn’t worked. Governments have stepped in with measures such as the Soft Drinks Sugar Tax and HFSS legislation. Retailers argue they can self-police. However, history shows “marking your own homework” rarely works. The best way forward is a mix of legislation and self-governance.
Why Healthy Products Struggle
For healthier products to succeed, CPG manufacturers face one major challenge: taste. This is a significant hurdle for product innovation. Remove fat, sugar, or salt, and something else must replace it. Consumers won’t compromise on flavour.
Launching healthier products (NPD) is hard for two reasons:
- Shoppers only buy about 1% of the products a supermarket stocks. Getting into the basket is tough.
- Most new products fail because:
– They aren’t meaningfully different.
– They don’t taste good.
– They don’t get enough time or investment to gain awareness.
– They lack physical availability on shelves or in mental availability marketing.
A clear example: Mondelez scrapped its 30% less sugar Dairy Milk bar after only four years. Yet the WHO has long urged people to cut sugar intake by half. The direction was right, but not enough time was given to help consumers adapt.
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The consumer perspective
From the shopper’s point of view:
- What makes a product healthy?
- Who decides?
- Who can I trust?
- How do I thrive when health advice is so confusing?
From a trust perspective, two in five of UK 16-34s learn about healthy eating from wellness creators on social media vs 8% for 45+ adults.
People want brands and retailers to help them make better choices. But too often, the healthiest option is also the least profitable. For example, a week’s worth of jacket potatoes costs pennies. A branded “meal solution” costs 10–20 times more.
Lessons from the industry
- McDonald’s: The Big Mac never pretended to be healthy. But McDonald’s introduced salads in 2005, giving customers healthier options without changing its core products.
- Coca-Cola and Fanta: Reformulating Fanta to reduce sugar worked because taste was preserved, and sales grew. Lucozade lost sales when reformulation hurt flavour. The lesson: reduce calories, keep flavour.
Fads vs. Trends
New products and diets appear constantly — keto, coconut, protein powders. Most are fads: short-lived, high-risk, sometimes high-reward, and often fleeting.
True trends are different. They are long-term, low-risk, and tied to deep societal shifts:
- Health
- Sustainability
- The environment
- An ageing population with disposable income
These aren’t short-lived crazes. They are predictable in their movement, impactful and impossible to ignore without predictable reward long long-term consequences.
The Way Forward
The food industry cannot self-regulate itself. There are too many players and too many conflicting interests.
- Legislation: Clear rules from government.
- Innovation: Healthier products that still deliver on taste.
- Education: Helping shoppers understand and choose better options.
By combining legislation, innovation, and education, the food industry and policymakers can work together to reverse the health decline and build a healthier future.
Is your brand navigating The Health Paradox successfully?
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