Young people have high expectations for brand owners in the early nutrition industry. They want these brands to transition from being viewed as part of the problem to becoming part of the solution. FrieslandCampina Ingredients recently conducted research on the future of this sector, known as “Vision 2030 – Early Life Nutrition: Shining a light on new growth opportunities in a market under pressure.” The findings reveal how the industry is transforming, allowing brand owners to prepare their businesses and innovation pipelines for the next era.
According to Floor van der Horst from FrieslandCampina Ingredients, these changes are primarily driven by generation Z, the young people who will be parents in 2030. Gen Z’s beliefs, attitudes, and priorities differ significantly from previous generations due to the unprecedented circumstances they have faced, such as political unpredictability, climate concerns, a pandemic, and a global recession. These experiences have shaped their future outlook, including their approach to parenting.
However, Gen Z’s focus extends beyond parenting. They are deeply concerned about global issues, including the environment, mental health, and the potential negative effects of technology on children. As a result, these individuals prioritize matters like financial independence, holistic health, emotional well-being, and ethical responsibility.
Gen Z expects brand owners to move away from being part of the problem and become part of the solution. To gain their trust, brands must provide credible and trustworthy claims, especially in terms of sustainability. Vague statements and goals are no longer sufficient; brands must offer clear and evidence-based sustainability claims on their packaging.
Sustainability is already driving significant changes in the food sector, and the early life nutrition space will also be impacted. The demand for alternative proteins, as well as natural and locally-sourced ingredients, will continue to grow. This will result in a rise in hybrid (plant:dairy) and plant-based offerings. However, it is crucial to ensure the safety and digestibility of plant-based infant milk formulas to maintain their nutritional quality.
Technological advancements will play a vital role in the future of early life nutrition brands. Brands will leverage technology to preserve bioactive proteins and native structures during processing, making formulas as close to breastmilk as possible. Cell-based production of human milk components, using precision fermentation and cell culture, is also expected to expand. This approach has already enabled the commercialization of Human Milk Oligosaccharides (HMOs), and further research is exploring the possibilities of producing alternative and futureproof proteins suitable for early life nutrition.
FrieslandCampina Ingredients, in collaboration with Annalise Market Intelligence, has identified three types of markets with distinct characteristics. The US, the UK, and Mexico have more developed early life nutrition markets compared to countries like India, Indonesia, Nigeria, and Vietnam. China stands in a category of its own due to its sheer size. Future trends and propositions need to be tailored to each market’s specific needs.
Successful early life nutrition brands will exhibit six core attributes, including mental health propositions and a focus on sustainability. Hybrid formulations will no longer be niche but will become mainstream, driven by increased awareness of environmental impact. Global market strategies will be less effective, and localized strategies will be necessary to remain relevant. The mid-price segment is likely to disappear, with premium and affordable solutions dominating the Chinese and emerging markets, respectively.
In conclusion, the early nutrition industry is evolving to meet the expectations of Gen Z. Brands must adapt to their priorities and provide credible and sustainable solutions. Technological advancements will help meet the demand for nutrition that closely resembles breastmilk, while market strategies need to be tailored to specific regions. By embracing these changes, early life nutrition brands can succeed in the increasingly complex and competitive market.