09.01.20
One of the definitive trends in the functional foods and nutraceuticals space over the past near-decade has involved consumers seeking out certain ingredients to improve their memory, focus, attention, and energy levels, and, particularly during the pandemic, to manage their mood and wellbeing.
“Over the last few years industry has introduced a new buzzword to describe this space – nootropics – and a growing segment of business is paying attention to it,” Julian Mellentin, the director of New Nutrition Business, said.
Nootropics are substances known to benefit the areas of cognitive function or mental performance in healthy people, which is a wide ranging function that “everyone wants,” Mellentin said. According to a recent survey conducted by the International Food Information Council (IFIC), a third of American consumers are looking for memory, focus, and cognition benefits from their food and drink. While the strong demand exists, Mellentin said that most nootropic brands fail to satisfy consumers.
“I wrote this strategy briefing because nootropics is a very high-risk area which is difficult for companies to navigate, and it’s important to see past the misleading hype that dominates this area,” he said. “The challenge of delivering a product that both tastes good and delivers a ‘feel-the-benefit’ effect, and is convenient, has been a major barrier to success in this category. Products such as Arepa’s blackcurrant beverage in New Zealand, which delivers on these two requirements, are rare. Several products usually use ingredients that consumers understand and accept, from caffeine to B vitamins.”
“If you choose ingredients such as cordyceps mushrooms or tulsi, you have a major challenge of low consumer familiarity,” Mellentin continued. “That makes it hard for anyone but a niche of health-active people to believe in the benefit your product is offering. Using cordyceps mushrooms, for example, is a strategy choice to either be a niche brand or, if your ambitions are bigger, to commit commercial suicide.”
In the strategy briefing, Mellentin highlights six strategies for success in this emerging area, and explores common pitfalls. The report outlines which ingredients to use, and includes a review of 16 ingredients and their benefits. Additionally, it outlines which consumer benefits to target, which can be largely dependent on the demographic group, and which ingredients and benefits are shown to garner the most attention on social media.
“Over the last few years industry has introduced a new buzzword to describe this space – nootropics – and a growing segment of business is paying attention to it,” Julian Mellentin, the director of New Nutrition Business, said.
Nootropics are substances known to benefit the areas of cognitive function or mental performance in healthy people, which is a wide ranging function that “everyone wants,” Mellentin said. According to a recent survey conducted by the International Food Information Council (IFIC), a third of American consumers are looking for memory, focus, and cognition benefits from their food and drink. While the strong demand exists, Mellentin said that most nootropic brands fail to satisfy consumers.
“I wrote this strategy briefing because nootropics is a very high-risk area which is difficult for companies to navigate, and it’s important to see past the misleading hype that dominates this area,” he said. “The challenge of delivering a product that both tastes good and delivers a ‘feel-the-benefit’ effect, and is convenient, has been a major barrier to success in this category. Products such as Arepa’s blackcurrant beverage in New Zealand, which delivers on these two requirements, are rare. Several products usually use ingredients that consumers understand and accept, from caffeine to B vitamins.”
“If you choose ingredients such as cordyceps mushrooms or tulsi, you have a major challenge of low consumer familiarity,” Mellentin continued. “That makes it hard for anyone but a niche of health-active people to believe in the benefit your product is offering. Using cordyceps mushrooms, for example, is a strategy choice to either be a niche brand or, if your ambitions are bigger, to commit commercial suicide.”
In the strategy briefing, Mellentin highlights six strategies for success in this emerging area, and explores common pitfalls. The report outlines which ingredients to use, and includes a review of 16 ingredients and their benefits. Additionally, it outlines which consumer benefits to target, which can be largely dependent on the demographic group, and which ingredients and benefits are shown to garner the most attention on social media.
