Health and Wellness in Australia

Health and Wellness in Australia
Euromonitor International
April 2022
HEALTH AND WELLNESS IN AUSTRALIA Passport i
LIST OF CONTENTS AND TABLES

EXECUTIVE SUMMARY .............................................................................................................. 1
Health and wellness in 2021: The big picture ........................................................................... 1
2021 key trends ........................................................................................................................ 1
Competitive landscape ............................................................................................................. 1
Retailing developments ............................................................................................................ 2
What next for health and wellness? .......................................................................................... 2
MARKET DATA ............................................................................................................................ 2
Table 1 Sales of Health and Wellness by Type: Value 2016-2021............................ 2
Table 2 Sales of Health and Wellness by Type: % Value Growth 2016-2021 ........... 2
Table 3 Sales of Health and Wellness by Category: Value 2016-2021 ..................... 3
Table 4 Sales of Health and Wellness by Category: % Value Growth 2016-
2021 ............................................................................................................. 4
Table 5 Sales of Health and Wellness by Prime Positioning: Value 2016-2021 ........ 4
Table 6 Sales of Health and Wellness by Prime Positioning: % Value Growth
2016-2021 .................................................................................................... 5
Table 7 NBO Company Shares of Health and Wellness: % Value 2017-2021 .......... 5
Table 8 LBN Brand Shares of Health and Wellness: % Value 2018-2021 ................ 6
Table 9 Distribution of Health and Wellness by Format: % Value 2016-2021 ........... 8
Table 10 Distribution of Health and Wellness by Format and Category: % Value
2021 ............................................................................................................. 8
Table 11 Forecast Sales of Health and Wellness by Type: Value 2021-2026 ............. 9
Table 12 Forecast Sales of Health and Wellness by Type: % Value Growth
2021-2026 .................................................................................................... 9
Table 13 Forecast Sales of Health and Wellness by Category: Value 2021-
2026 ............................................................................................................. 9
Table 14 Forecast Sales of Health and Wellness by Category: % Value Growth
2021-2026 .................................................................................................. 10
Table 15 Forecast Sales of Health and Wellness by Prime Positioning: Value
2021-2026 .................................................................................................. 11
Table 16 Forecast Sales of Health and Wellness by Prime Positioning: % Value
Growth 2021-2026 ..................................................................................... 11
DISCLAIMER ............................................................................................................................. 12
SOURCES.................................................................................................................................. 12
Summary 1 Research Sources ...................................................................................... 12
© Euromonitor International
HEALTH AND WELLNESS IN AUSTRALIA Passport 1
HEALTH AND WELLNESS IN

AUSTRALIA
EXECUTIVE SUMMARY
Health and wellness in 2021: The big picture

Following a slight pandemic-induced slowdown in growth in 2020, health and wellness
recovered to a higher current value growth rate in 2021, as Australian consumers began to
emerge from lockdown. Consumers were more health-conscious than prior to the pandemic,
with a greater awareness of their own mortality. The lockdowns, and consequent lack of
physical activities, also had consequences for consumers’ health, with the result that many
Australians were drawn to health and wellness products in order to return to their previous
physical shape. The concerns of Australians with their own wellness were not confined to their
physical self, as the pandemic was also mentally and psychologically straining. This provided an
additional incentive for consumers to embrace health and wellness products that provide stress-
reducing characteristics, such as fruit/herbal teas.
2021 key trends

Health and wellness packaged food experienced solid growth in 2020 and 2021, with free
from performing particularly well. The most dynamic growth rates were seen amongst foods
promoted as being free from meat, as a growing number of younger Australians have embraced
vegetarianism and veganism, largely due to concerns about the carbon emissions produced by
meat and dairy production. Organic packaged food and beverages also recovered, particularly
in hot drinks, with brands such as Unilever’s Pukka making gains in fruit/herbal tea, capitalising
on consumers’ need for soothing beverages during stressful times.
Fortified/functional experienced a strong comeback in 2021, after an absence of growth
during the first year of the pandemic. Fortified/functional beverages is predominately made up of
energy drinks and sports drinks, both of which are largely sold through on-the-go channels,
which were largely closed in 2020. They recovered over 2021, however, as many younger
consumers – particularly those in the gaming community – embraced energy drinks as a key
component of their pandemic lifestyle. BFY reduced sugar beverages also performed well, as
major players in soft drinks took measures to meet their Sugar Reduction Pledge of reducing
sugar content by 20% between 2015 and 2025.
Competitive landscape
Coca-Cola Europacific Partners remained the largest player in health and wellness in 2021,
as it – and other major soft drinks companies, such as Schweppes Australia – attempted to
meet the Sugar Reduction Pledge, to reduce the sugar content of their beverages by an
average of 20% between 2015 and 2025. Meeting this pledge requires either the reformulation
of the full-sugar variants, or a resolute effort to focus their marketing on their reduced sugar
SKUs, with most manufacturers choosing the latter.
Major players in the fortified/functional category include Groupe Danone, due to its strength in
milk formula, and Frucor Suntory Australia, due to its strength in energy drinks, specifically with
the V brand. Major players in breakfast cereals, such as Kellogg (Australia) and The Sanitarium
Health Food Co (Australasian Conference Association), also have a strong presence, although
one that is fading as Australians pivot away from eating breakfast.
Retailing developments
Health and wellness was buffeted by the COVID-19 pandemic and associated lockdowns, as
several previously popular retail channels were effectively closed for long periods of time across
much of the country, particularly the highly populated areas of Sydney and Melbourne. On-the-
go channels were particularly impacted, as consumers were spending more time at home and
consequently had less need for on-the-go snacks or beverages. Thus, it was supermarkets and
e-commerce that saw major gains.
Given the wider range of products offered by supermarkets and e-commerce, the pandemic
gave smaller brands greater exposure than usual, leading to fluctuations in the competitive
landscape. Many of the new up-and-coming brands promoted themselves as health and
wellness products. Companies such as Nexba Beverages (which offers sugar-free products),
Vegie Chip Co (which offers gluten-free products) and Soda Press Company (which offers
organic products) consequently made significant gains.
What next for health and wellness?

Health and wellness is set to continue to see current value growth over the forecast period,
with a higher increase coming from HW beverages. Consumers concerned about their health
are less likely to purchase HW packaged food over the forecast period, as they are instead
migrating towards fresh food. HW packaged food was preferred prior to the pandemic, as
consumers valued the convenience that it offered. As more Australians work from home over
the forecast period, and thus avoid the wasted time of commuting, they will have more time to
cook their own meals, hampering growth for HW packaged food. Meanwhile, HW beverages will
continue to perform solidly, as major players in soft drinks attempt to meet their Sugar
Reduction Pledge, to reduce sugar content by 20% between 2015 and 2025. Accomplishing this
will require significant growth in BFY reduced sugar beverages.
Consumers’ concern for their health will continue to rise, as they attempt to get in shape after
stagnating during the pandemic. However, some lifestyles that were gaining ground prior to the
pandemic may find it difficult to pick up their previous momentum. Interest in veganism, for
example, inspired by Extinction Rebellion and concern about the carbon emissions of meat and
dairy production, may slow as consumers are distracted by other troubling world events.
MARKET DATA
Table 1 Sales of Health and Wellness by Type: Value 2016-2021
AUD million
2016 2017 2018 2019 2020 2021
Better For You (BFY) 3,145.0 3,201.5 3,259.6 3,294.7 3,411.0 3,529.8
Fortified/Functional (FF) 5,072.6 5,349.0 5,582.2 5,911.8 5,947.4 6,245.7
Free From 920.2 987.8 1,061.5 1,130.2 1,210.8 1,269.6
Naturally Healthy (NH) 5,579.7 5,705.5 5,822.2 5,914.2 6,086.9 6,198.8
Organic 938.8 970.3 1,082.9 1,089.1 1,118.8 1,160.1
Health and Wellness by 15,656.2 16,214.1 16,808.5 17,339.9 17,775.0 18,404.0
Type
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Sales of Health and Wellness by Type: % Value Growth 2016-2021
% current value growth

2020/21 2016-21 CAGR 2016/21 Total
Better For You (BFY) 3.5 2.3 12.2

Fortified/Functional (FF) 5.0 4.2 23.1
Free From 4.9 6.6 38.0
Naturally Healthy (NH) 1.8 2.1 11.1
Organic 3.7 4.3 23.6
Health and Wellness by Type 3.5 3.3 17.6
Table 3 Sales of Health and Wellness by Category: Value 2016-2021
AUD million
2016 2017 2018 2019 2020 2021
- HW Packaged Food by 10,162.8 10,444.7 10,820.7 11,145.8 11,510.7 11,856.5

Type
- HW Beverages by Type 5,493.3 5,769.4 5,987.8 6,194.1 6,264.3 6,547.6
HW Beverages 5,493.3 5,769.4 5,987.8 6,194.1 6,264.3 6,547.6
- HW Hot Drinks 379.7 401.1 412.4 436.7 483.4 541.1
- HW Soft Drinks 5,113.6 5,368.3 5,575.4 5,757.4 5,780.9 6,006.5
HW Packaged Food 10,162.8 10,444.7 10,820.7 11,145.8 11,510.7 11,856.5
- HW Baby Food 840.2 922.0 1,071.5 1,148.4 1,024.1 1,047.9
- HW Baked Goods 1,500.9 1,532.4 1,573.5 1,615.7 1,696.2 1,744.1
- HW Breakfast Cereals 1,257.2 1,270.3 1,285.8 1,297.0 1,362.1 1,403.3
- HW Chilled Processed 31.7 38.4 46.1 54.6 63.3 84.2
Meat and Seafood
- HW Confectionery 515.7 533.2 536.7 538.0 534.0 543.4
- HW Dairy 3,068.0 3,100.2 3,132.0 3,200.1 3,322.3 3,405.1
- HW Edible Oils 350.0 362.6 374.5 388.6 417.4 432.8
- HW Frozen Meat, 37.3 39.7 42.2 44.5 48.4 50.6
Seafood, Fruit and
Vegetables
- HW Ice Cream and 177.2 179.6 195.8 197.6 208.3 205.5
Frozen Desserts
- HW Ready Meals 279.1 291.6 303.1 318.9 350.8 368.2
- HW Rice, Pasta and 86.7 94.2 100.1 107.2 119.6 125.1
Noodles
- HW Sauces, Dressings 83.6 82.9 78.6 72.8 72.1 71.1
and Condiments
- HW Savoury Snacks 583.5 618.9 666.0 703.3 757.1 801.4
- HW Shelf Stable Meat, 22.9 23.7 24.6 25.3 26.2 27.0
Seafood, Fruit and
Vegetables
- HW Soup 48.3 46.4 45.1 45.3 47.9 49.2
- HW Spreads 220.9 227.4 226.5 225.6 236.6 242.7
- HW Sweet Biscuits, 1,044.4 1,067.1 1,104.9 1,148.5 1,208.8 1,238.4
Snack Bars and Fruit
Snacks
Category
Table 4 Sales of Health and Wellness by Category: % Value Growth 2016-2021

2020/21 2016-21 CAGR 2016/21 Total
- HW Packaged Food by Type 3.0 3.1 16.7

- HW Beverages by Type 4.5 3.6 19.2
HW Beverages 4.5 3.6 19.2
- HW Hot Drinks 11.9 7.3 42.5
- HW Soft Drinks 3.9 3.3 17.5
HW Packaged Food 3.0 3.1 16.7
- HW Baby Food 2.3 4.5 24.7
- HW Baked Goods 2.8 3.0 16.2
- HW Breakfast Cereals 3.0 2.2 11.6
- HW Chilled Processed Meat and Seafood 33.1 21.6 166.0
- HW Confectionery 1.8 1.0 5.4
- HW Dairy 2.5 2.1 11.0
- HW Edible Oils 3.7 4.3 23.7
- HW Frozen Meat, Seafood, Fruit and 4.5 6.3 35.8
Vegetables
- HW Ice Cream and Frozen Desserts -1.3 3.0 16.0
- HW Ready Meals 5.0 5.7 31.9
- HW Rice, Pasta and Noodles 4.6 7.6 44.4
- HW Sauces, Dressings and Condiments -1.3 -3.2 -14.9
- HW Savoury Snacks 5.8 6.6 37.3
- HW Shelf Stable Meat, Seafood, Fruit 3.0 3.4 18.0
and Vegetables
- HW Soup 2.8 0.4 2.0
- HW Spreads 2.6 1.9 9.9
- HW Sweet Biscuits, Snack Bars and 2.4 3.5 18.6
Fruit Snacks
Health and Wellness by Category 3.5 3.3 17.6
Table 5 Sales of Health and Wellness by Prime Positioning: Value 2016-2021
AUD million
2016 2017 2018 2019 2020 2021
Beauty From Within 34.4 37.9 39.8 41.8 41.6 43.4

Bone and Joint Health 209.9 204.8 187.5 180.7 178.5 176.0
Brain Health and Memory 73.2 83.1 94.9 108.4 97.8 100.8
Cardiovascular Health 267.1 260.1 253.3 246.8 249.4 249.3
Digestive Health 2,537.8 2,593.0 2,660.2 2,715.7 2,840.2 2,929.5
Endurance 563.7 586.5 613.9 658.7 607.9 598.8
Energy Boosting 1,063.8 1,235.9 1,394.2 1,558.7 1,710.6 1,907.7
Free From 920.2 987.8 1,061.5 1,130.2 1,210.8 1,269.6
General Wellbeing 6,580.1 6,752.6 6,918.0 7,098.4 7,251.2 7,420.1
Immune Support 151.6 151.7 130.3 116.5 65.8 61.1
Oral and Respiratory 222.4 230.2 230.1 226.9 219.2 220.9
Health
Urinary Tract Health - - - - - -
Vision Health 56.5 79.1 96.1 130.0 78.2 85.8
Weight Management 2,882.7 2,934.2 2,992.4 3,032.3 3,146.6 3,268.1
Health Wellness by 15,656.2 16,214.1 16,808.5 17,339.9 17,775.0 18,404.0
Prime Positioning
Table 6 Sales of Health and Wellness by Prime Positioning: % Value Growth 2016-2021

2020/21 2016-21 CAGR 2016/21 Total
Beauty From Within 4.2 4.8 26.2

Bone and Joint Health -1.4 -3.5 -16.2
Brain Health and Memory 3.0 6.6 37.7
Cardiovascular Health -0.1 -1.4 -6.7
Digestive Health 3.1 2.9 15.4
Endurance -1.5 1.2 6.2
Energy Boosting 11.5 12.4 79.3
Free From 4.9 6.6 38.0
General Wellbeing 2.3 2.4 12.8
Immune Support -7.2 -16.6 -59.7
Oral and Respiratory Health 0.7 -0.1 -0.7
Urinary Tract Health - - -
Vision Health 9.7 8.7 51.7
Weight Management 3.9 2.5 13.4
Health Wellness by Prime Positioning 3.5 3.3 17.6
Table 7 NBO Company Shares of Health and Wellness: % Value 2017-2021
% retail value rsp

Company 2017 2018 2019 2020 2021
Coca-Cola Europacific - - - - 8.6

Partners plc
Schweppes Australia Pty 5.4 5.3 5.4 5.5 5.5
Ltd
Aldi Stores 4.6 4.7 4.8 5.1 5.1
Supermarkets Pty Ltd
Nestlé Australia Ltd 3.8 3.6 3.6 3.6 3.6
Woolworths Group Ltd 3.4 3.3 3.3 3.4 3.4
Frucor Suntory 2.8 3.0 3.1 3.1 3.1
Australia Pty Ltd
Sanitarium Health Food 2.8 2.8 2.7 2.8 2.8
Co, The
Lion Pty Ltd 5.6 5.5 5.2 4.9 2.6
Bega Cheese Ltd 0.7 0.7 0.6 0.6 2.4
Kellogg (Australia) Pty 2.6 2.5 2.4 2.4 2.3
Ltd
Parmalat Australia Pty 2.6 2.5 2.4 2.3 2.3
Ltd
Goodman Fielder Ltd 2.2 2.1 2.1 2.2 2.1
Nutricia Australia Pty 1.9 2.1 2.3 2.0 2.0
Ltd
Red Bull Australia Pty 1.8 2.0 2.0 2.0 2.0
Ltd
Coles Group Ltd - - 1.7 1.7 1.8
George Weston Foods Ltd 1.6 1.6 1.6 1.6 1.6
Mars Australia Pty Ltd 1.5 1.5 1.4 1.4 1.3
Monde Nissin 0.7 0.7 0.8 1.0 1.1

(Australia) Pty Ltd
Smiths Snackfoods Co 0.8 0.9 0.9 1.0 1.0
Pty Ltd, The
Bead Foods Pty Ltd 0.8 0.8 0.9 0.9 1.0
Danone Murray Goulburn 0.6 0.7 0.8 0.9 1.0
Pty Ltd
Jalna Dairy Foods Pty Ltd 1.0 1.0 1.0 1.0 0.9
Bellamy's Australia Ltd 1.0 1.3 1.1 0.9 0.9
Heinz Co Australia Ltd, 1.8 1.4 1.3 0.9 0.8
HJ
Vesco Foods Pty Ltd - - 0.8 0.8 0.8
Freedom Foods Group Ltd 0.7 0.7 0.8 0.8 0.8
Aspen Pharmacare 0.8 0.8 0.9 0.8 0.8
Australia Pty Ltd
Manassen Foods 0.7 0.7 0.7 0.7 0.7
Australia Pty Ltd
Carman's Fine Foods Pty 0.6 0.6 0.6 0.7 0.7
Ltd
Capilano Honey Ltd 0.7 0.7 0.6 0.6 0.6
Coca-Cola Amatil Ltd 10.9 10.5 10.2 9.4 -
Wesfarmers Ltd 1.8 1.7 - - -
Artisanal 3.6 3.5 3.4 3.5 3.5
Other Private Label 2.5 2.5 2.5 2.6 2.6
Others 27.8 28.4 28.2 29.1 30.5
Total 100.0 100.0 100.0 100.0 100.0
Table 8 LBN Brand Shares of Health and Wellness: % Value 2018-2021
% retail value rsp

Brand (GBO) Company (NBO) 2018 2019 2020 2021
Coca-Cola No Sugar Coca-Cola Europacific - - - 3.2

(Coca-Cola Co, The) Partners plc
Woolworths (Private Woolworths Group Ltd 2.4 2.4 2.4 2.4
Label)
Pepsi Max (PepsiCo Schweppes Australia Pty 2.1 2.3 2.3 2.3
Inc) Ltd
V (Suntory Holdings Frucor Suntory 1.8 1.9 1.9 1.9
Ltd) Australia Pty Ltd
Coles (Private Label) Coles Group Ltd - 1.6 1.7 1.7
Red Bull (Red Bull Red Bull Australia Pty 1.7 1.7 1.6 1.4
GmbH) Ltd
Nutricia Aptamil Nutricia Australia Pty 1.5 1.6 1.5 1.4
(Danone, Groupe) Ltd
Powerade (Coca-Cola Coca-Cola Europacific - - - 1.4
Co, The) Partners plc
Monster (Monster Coca-Cola Europacific - - - 1.2
Beverage Corp) Partners plc
Daily Juice Bega Cheese Ltd - - - 1.2
Uncle Tobys (Cereal Nestlé Australia Ltd 1.1 1.1 1.1 1.1
Partners Worldwide
SA)
Yoplait (General Lion Pty Ltd 1.2 1.1 1.1 1.1
Mills Inc)
Nudie (Monde Nissin Monde Nissin 0.7 0.8 1.0 1.1
Corp) (Australia) Pty Ltd
Gatorade (PepsiCo Schweppes Australia Pty 1.3 1.3 1.1 1.1

Inc) Ltd
Up&Go (Australasian Sanitarium Health Food 1.1 1.1 1.1 1.1
Conference Co, The
Association Ltd)
Wonder White Goodman Fielder Ltd 1.1 1.1 1.1 1.1
(Wilmar
International Ltd)
Weet-Bix Sanitarium Health Food 0.9 0.9 1.0 0.9
(Australasian Co, The
Conference
Association Ltd)
Jalna Jalna Dairy Foods Pty Ltd 1.0 1.0 1.0 0.9
Dairy Farmers (Bega Lion Pty Ltd - - - 0.9
Cheese Ltd)
Chobani (Chobani LLC) Bead Foods Pty Ltd 0.8 0.8 0.9 0.9
Mother (Monster Coca-Cola Europacific - - - 0.9
Beverage Corp) Partners plc
Nobby's (PepsiCo Inc) Smiths Snackfoods Co 0.8 0.8 0.9 0.9
Pty Ltd, The
Bellamy's Organic Bellamy's Australia Ltd - - 0.9 0.9
(China Mengniu
Dairy Co Ltd)
Lean Cuisine Vesco Foods Pty Ltd - 0.8 0.8 0.8
(Nestlé SA)
Goldenvale (Private Aldi Stores 0.7 0.7 0.8 0.8
Label) Supermarkets Pty Ltd
Pauls (Lactalis, Parmalat Australia Pty 0.8 0.8 0.8 0.8
Groupe) Ltd
Bakers Life Aldi Stores 0.7 0.7 0.8 0.8
(Private Label) Supermarkets Pty Ltd
Golden Circle Heinz Co Australia Ltd, 0.9 0.8 0.8 0.8
(Kraft Heinz Co) HJ
S-26 (Lactalis, Aspen Pharmacare - 0.9 0.7 0.7
Groupe) Australia Pty Ltd
Mount Franklin Coca-Cola Europacific - - - 0.7
(Coca-Cola Co, The) Partners plc
Coca-Cola No Sugar Coca-Cola Amatil Ltd 1.2 2.6 3.1 -
(Coca-Cola Co, The)
Powerade (Coca-Cola Coca-Cola Amatil Ltd 1.6 1.7 1.5 -
Co, The)
Daily Juice (Kirin Lion Pty Ltd 1.2 1.2 1.2 -
Holdings Co Ltd)
Mother (Monster Coca-Cola Amatil Ltd 1.1 1.2 1.1 -
Beverage Corp)
Diet Coke (Coca- Coca-Cola Amatil Ltd 1.6 1.5 1.0 -
Cola Co, The)
Dairy Farmers Lion Pty Ltd 0.9 0.9 0.9 -
(Kirin Holdings Co
Ltd)
Mount Franklin Coca-Cola Amatil Ltd 1.1 1.0 0.8 -
(Coca-Cola Co, The)
Coca-Cola Zero Coca-Cola Amatil Ltd 1.7 0.1 0.0 -
Sugar (Coca-Cola
Co, The)
Bellamy's Organic Bellamy's Australia Ltd 1.3 1.1 - -
Coles (Private Label) Wesfarmers Ltd 1.7 - - -
S-26 (Aspen Aspen Pharmacare 0.8 - - -
Pharmacare (Pty) Ltd) Australia Pty Ltd
Lean Cuisine Simplot Australia Pty Ltd 0.7 - - -
(Nestlé SA)
Artisanal Artisanal 3.5 3.4 3.5 3.5

Other Private Label Other Private Label 2.5 2.5 2.6 2.6
(Private Label)
Others Others 56.6 56.6 57.2 57.4
Total Total 100.0 100.0 100.0 100.0
Table 9 Distribution of Health and Wellness by Format: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Store-Based Retailing 96.1 96.1 96.0 95.9 95.8 95.7

- Grocery Retailers 95.1 95.1 95.1 95.0 95.0 94.8
-- Modern Grocery 81.8 82.2 82.4 82.8 82.9 83.1
Retailers
--- Convenience Stores 6.7 6.7 6.8 6.8 6.0 6.3
--- Discounters 1.4 1.4 1.5 1.5 1.6 1.6
--- Forecourt Retailers 5.1 5.1 5.1 5.2 3.9 4.5
--- Hypermarkets - - - - - -
--- Supermarkets 68.6 68.9 69.0 69.2 71.4 70.7
-- Traditional Grocery 13.3 12.9 12.7 12.2 12.1 11.7
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small 6.8 6.7 6.6 6.5 6.6 6.6
Grocers
-- Other Grocery 6.5 6.2 6.1 5.7 5.5 5.1
Retailers
- Non-Grocery Specialists 1.0 1.0 1.0 0.9 0.8 0.9
Non-Store Retailing 3.9 3.9 4.0 4.1 4.2 4.3
- Vending 1.0 1.0 1.0 1.0 0.8 0.9
- Homeshopping 0.5 0.5 0.5 0.5 0.5 0.5
- E-Commerce 2.2 2.3 2.3 2.5 2.7 2.9
- Direct Selling 0.1 0.1 0.1 0.1 0.1 0.1
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 10 Distribution of Health and Wellness by Format and Category: % Value 2021
% retail value rsp

Better Fortified/ Free From Naturally Organic
For You Functional Healthy
(BFY) (FF) (NH)
Store-Based Retailing 96.5 95.6 92.4 96.4 93.0

- Grocery Retailers 96.0 94.1 91.2 95.9 92.6
-- Modern Grocery 85.9 85.0 70.4 85.8 63.8
Retailers
--- Convenience Stores 5.3 7.9 4.5 6.3 3.0
--- Discounters 1.5 1.5 0.5 1.9 1.5
--- Forecourt Retailers 3.8 7.5 0.4 3.2 1.7
--- Hypermarkets 0.0 0.0 0.0 0.0 0.0
--- Supermarkets 75.3 68.1 65.1 74.4 57.6
-- Traditional Grocery 10.1 9.1 20.8 10.1 28.8
Retailers
--- Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0
specialists
--- Independent Small 5.7 6.3 4.0 6.4 14.1
Grocers
-- Other Grocery 4.4 2.8 16.8 3.7 14.7
Retailers
- Non-Grocery Specialists 0.4 1.4 1.1 0.6 0.4
Non-Store Retailing 3.5 4.4 7.6 3.6 7.0
- Vending 1.5 1.4 0.1 0.1 1.2
- Homeshopping 0.2 0.3 1.4 0.6 1.4
- E-Commerce 1.8 2.6 6.1 2.8 3.9
- Direct Selling 0.0 0.2 0.1 0.0 0.5
Total 100.0 100.0 100.0 100.0 100.0
Key: BFY = better for you; FFU = fortified/functional; FFRM = free from; NH = naturally healthy; ORG =
organic
Table 11 Forecast Sales of Health and Wellness by Type: Value 2021-2026
AUD million
2021 2022 2023 2024 2025 2026
Better For You (BFY) 3,529.8 3,589.4 3,647.5 3,703.6 3,756.7 3,807.4
Fortified/Functional (FF) 6,245.7 6,445.9 6,643.4 6,841.7 7,044.1 7,244.7
Free From 1,269.6 1,318.3 1,374.6 1,435.3 1,500.3 1,569.1
Naturally Healthy (NH) 6,198.8 6,257.3 6,313.0 6,372.8 6,433.2 6,497.4
Organic 1,160.1 1,204.6 1,245.3 1,292.3 1,342.3 1,396.8
Type
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 12 Forecast Sales of Health and Wellness by Type: % Value Growth 2021-2026
% constant value growth

2021/2022 2021-26 CAGR 2021/26 Total
Better For You (BFY) 1.7 1.5 7.9

Fortified/Functional (FF) 3.2 3.0 16.0
Free From 3.8 4.3 23.6
Naturally Healthy (NH) 0.9 0.9 4.8
Organic 3.8 3.8 20.4
Health and Wellness by Type 2.2 2.2 11.5
trade sources
Table 13 Forecast Sales of Health and Wellness by Category: Value 2021-2026
AUD million
2021 2022 2023 2024 2025 2026
- HW Packaged Food by 11,856.5 12,046.1 12,234.6 12,433.0 12,640.9 12,855.7

Type
- HW Beverages by Type 6,547.6 6,769.4 6,989.1 7,212.6 7,435.6 7,659.6

HW Beverages 6,547.6 6,769.4 6,989.1 7,212.6 7,435.6 7,659.6
- HW Hot Drinks 541.1 575.8 606.1 634.9 662.0 687.9
- HW Soft Drinks 6,006.5 6,193.6 6,383.0 6,577.8 6,773.7 6,971.8
HW Packaged Food 11,856.5 12,046.1 12,234.6 12,433.0 12,640.9 12,855.7
- HW Baby Food 1,047.9 1,090.3 1,137.7 1,192.3 1,249.4 1,308.6
- HW Baked Goods 1,744.1 1,764.2 1,784.9 1,806.0 1,823.4 1,839.2
- HW Breakfast Cereals 1,403.3 1,398.7 1,392.8 1,388.0 1,386.0 1,383.3
- HW Chilled Processed 84.2 93.1 104.1 117.0 132.0 149.3
Meat and Seafood
- HW Confectionery 543.4 542.4 541.5 540.1 539.0 538.9
- HW Dairy 3,405.1 3,439.1 3,473.4 3,510.0 3,549.6 3,591.8
- HW Edible Oils 432.8 449.6 457.4 464.5 471.2 477.0
- HW Frozen Meat, 50.6 52.7 54.9 56.2 57.8 59.7
Seafood, Fruit and
Vegetables
- HW Ice Cream and 205.5 210.2 215.8 222.3 229.0 236.7
Frozen Desserts
- HW Ready Meals 368.2 376.3 384.0 391.1 397.7 404.8
- HW Rice, Pasta and 125.1 131.7 138.7 145.0 151.1 156.2
Noodles
- HW Sauces, Dressings 71.1 69.4 67.7 66.2 64.7 63.1
and Condiments
- HW Savoury Snacks 801.4 837.0 874.8 911.9 951.4 991.5
- HW Shelf Stable Meat, 27.0 27.2 27.3 27.3 27.4 27.5
Seafood, Fruit and
Vegetables
- HW Soup 49.2 48.9 48.5 48.1 47.7 47.4
- HW Spreads 242.7 246.2 245.9 245.4 244.5 243.5
- HW Sweet Biscuits, 1,238.4 1,252.2 1,267.9 1,283.8 1,300.3 1,318.2
Snack Bars and Fruit
Snacks
Category
trade sources
Table 14 Forecast Sales of Health and Wellness by Category: % Value Growth 2021-
2026

2021/2022 2021-26 CAGR 2021/26 Total
- HW Packaged Food by Type 1.6 1.6 8.4

- HW Beverages by Type 3.4 3.2 17.0
HW Beverages 3.4 3.2 17.0
- HW Hot Drinks 6.4 4.9 27.1
- HW Soft Drinks 3.1 3.0 16.1
HW Packaged Food 1.6 1.6 8.4
- HW Baby Food 4.0 4.5 24.9
- HW Baked Goods 1.2 1.1 5.5
- HW Breakfast Cereals -0.3 -0.3 -1.4
- HW Chilled Processed Meat and Seafood 10.5 12.1 77.3
- HW Confectionery -0.2 -0.2 -0.8
- HW Dairy 1.0 1.1 5.5
- HW Edible Oils 3.9 2.0 10.2
- HW Frozen Meat, Seafood, Fruit and 4.1 3.4 18.0
Vegetables
- HW Ice Cream and Frozen Desserts 2.3 2.9 15.2
- HW Ready Meals 2.2 1.9 9.9

- HW Rice, Pasta and Noodles 5.2 4.5 24.8
- HW Sauces, Dressings and Condiments -2.4 -2.3 -11.2
- HW Savoury Snacks 4.5 4.4 23.7
- HW Shelf Stable Meat, Seafood, Fruit 0.8 0.4 1.8
and Vegetables
- HW Soup -0.7 -0.8 -3.7
- HW Spreads 1.4 0.1 0.3
- HW Sweet Biscuits, Snack Bars and 1.1 1.3 6.5
Fruit Snacks
Health and Wellness by Category 2.2 2.2 11.5
trade sources
Table 15 Forecast Sales of Health and Wellness by Prime Positioning: Value 2021-2026
AUD million
2021 2022 2023 2024 2025 2026
Beauty From Within 43.4 27.9 27.9 28.0 28.1 28.2

Bone and Joint Health 176.0 161.3 157.5 153.8 150.1 146.6
Brain Health and Memory 100.8 114.5 115.1 116.7 118.2 119.8
Cardiovascular Health 249.3 240.5 237.4 234.4 231.9 229.7
Digestive Health 2,929.5 2,913.3 2,936.9 2,957.7 2,980.4 3,001.4
Endurance 598.8 628.9 658.5 686.8 713.9 740.2
Energy Boosting 1,907.7 2,039.7 2,162.9 2,289.0 2,418.0 2,549.1
Free From 1,269.6 1,318.3 1,374.6 1,435.3 1,500.3 1,569.1
General Wellbeing 7,420.1 7,493.6 7,600.1 7,709.6 7,819.6 7,931.2
Immune Support 61.1 65.0 64.6 64.8 65.2 65.7
Oral and Respiratory 220.9 218.7 216.3 213.8 211.4 209.4
Health
Urinary Tract Health - - - - - -
Vision Health 85.8 182.4 194.1 206.7 220.9 236.1
Weight Management 3,268.1 3,329.9 3,390.5 3,449.4 3,505.3 3,558.5
Health Wellness by 18,404.0 18,815.5 19,223.7 19,645.6 20,076.6 20,515.4
Prime Positioning
trade sources
Table 16 Forecast Sales of Health and Wellness by Prime Positioning: % Value Growth
2021-2026

2021/2022 2021-26 CAGR 2021/26 Total
Beauty From Within -35.7 -8.3 -35.1

Bone and Joint Health -8.4 -3.6 -16.7
Brain Health and Memory 13.7 3.5 18.9
Cardiovascular Health -3.5 -1.6 -7.9
Digestive Health -0.6 0.5 2.5
Endurance 5.0 4.3 23.6
Energy Boosting 6.9 6.0 33.6
Free From 3.8 4.3 23.6
General Wellbeing 1.0 1.3 6.9
Immune Support 6.4 1.5 7.6
Oral and Respiratory Health -1.0 -1.1 -5.2
Urinary Tract Health - - -
Vision Health 112.7 22.4 175.2

Weight Management 1.9 1.7 8.9
Health Wellness by Prime Positioning 2.2 2.2 11.5
trade sources
DISCLAIMER
Forecast and scenario closing date: 29 November 2021
Report closing date: 6 April 2022
Analysis and data in this report give full consideration to consumer behaviour and market
performance in 2021 and beyond as of the dates above. For the very latest insight on this
industry and consumer behaviour, at both global and national level, readers can access
strategic analysis and updates on www.euromonitor.com and via the Passport system, where
new content is being added on a systematic basis.
SOURCES
Sources used during the research included the following:
Summary 1 Research Sources

Official Sources ABARES
ABS - Australian Bureau of Statistics
ACCC
Agriculture Australia
Allergy & Anaphylaxis Australia
Anaphylaxis Australia
Australian Bureau of Statistics
Australian Competition & Consumer

Commission
Australian Government
Australian Olives
Australian Taxation Office
Biological Farmers of Australia
Coeliac Australia
CSIRO Food & Nutritional Sciences
Department of Agriculture, Fisheries &

Forestries
Department of Agriculture, Fisheries &

Forestry
Department of Foreign Affairs & Trade
Food Standards Australia
Food Standards Australia New Zealand
Future Food Systems
George Institute for Global Health
Heart Foundation of Australia
Lactation Resource Centre
National Center for Biotechnology Information
National Food Industry Strategy
National Health & Medical Research Council
NSW Department of Health
Rural Industries Research & Development

Corp
Senate Economics References Committee
UN Comtrade
US department of Agriculture
Victorian Government Department of Primary

Industries
World Health Organization
Trade Associations Agribusiness Association of Australia
AP News
Australasian Association of Convenience

Stores
Australasian Specialty Coffee Association
Australasian Specialty Tea Association
Australian Association of Convenience Stores
Australian Beverages Council Ltd
Australian Bottled Water Institute Inc
Australian Chicken Meat Federation
Australian Coffee Traders Association Inc
Australian Dietitian's Association
Australian Dried Fruit Association
Australian Food & Grocery Council
Australian Green Tea Growers Association
Australian Olive Association
Australian Organic
Australian Retailers Association
Australian Soft Drinks Association (ASDA)
Baking Industry Association of Queensland
Baking Industry Association of Victoria
Biological Farmers of Australia Cooperative
Canegrowers Association
Canned Food Org - Ardagh Group (Australia)
China International Tea Cultural Institute
Choice (Australian Consumers Association)
Dairy Australia
Dairy Industry Association of Australia
Drinks Association, The
Fair Trade Association Australia & New

Zealand
Fair Trade Association of Australia & New

Zealand
Frozen Food Information Bureau
Fruit Growers Victoria Ltd
Grains & Legumes Nutrition Council
Hort Innovation
Independent Vending Machine Operators

Association of Australia Inc
Instant Noodles Global Association
International Bottled Water Association
International Federation of Fruit Juice

Producers
Meat & Livestock Australia
National Baking Industry Association
Packaging Council of Australia
Private Label Manufacturers Association
Product of the Year
Ricegrowers Association of Australia
South Australia Farmers Federation
Tea Industry Forum
UNESDA & CISDA
Trade Press ABC Australia
ABC News
Adelaide Now
AdNews
AFR
Age, The
Appliance Retailer
Aqua Botannical
Aus Food News
AusFoodNews
Australian Broadcasting Corp News
Australian Financial Review
Australian Financial, The
Australian Food News
Australian, The
B&T Magazine
B&T Weekly
Bakery & Snacks
Bean Scene Mag
BeanScene Magazine
Bertocchi Smallgoods
Beverage Daily
Beverage Industry
Beverage Net
Beverage World
Bite Magazine
Bloomberg
Business Insider
Business Insider Australia
Business Review Australia
Business Review Weekly
Business Spectator
C&I Retailing
Caffe Culture
Confectionery News
Consumable
Convenience & Impulse Retailing
Convenience Store News
Convenience World
Courier Mail
C-store
Daily Telegraph
Dairy News
Dairy Reporter
Essential Baby
Fairfax Media
Farmonline
FarmWeekly
Food & Beverage Industry News
Food & Drink Business
Food & Drinks Business
Food & Drinks Magazine
Food Dive
Food Frontier
Food Ingredients First
Food Magazine
Food Magazine, The
Food Navigator
Food Processing
Food Works
Foodanddrink Business
Foodbev Media
FoodBev.com
Foodmag
FoodNavigator Asia
foodnavigator-asia
Fox FM
Fresh Plaza
Global Convenience Stores Focus
Good Food
Gourmet Traveller
Healthy Food Guide
Herald Sun
Hospitality Magazine
Huffington Post
Illawarra Mercury
Inside FMCG
Inside Small Business
ITWire
Just Food
Just Food Online Magazine
Marketing Magazine
Maternal & Child Health Journal
Milk value
Natural Health Magazine
News Mail
News.com.au
Nine Digital Pty Ltd
Packaging News
PepsiCo Australia Pty Ltd
PR Newswire
PR Week
Prime Creative Media Pty Ltd
Retail World
Retailworld
Sky News
Smart Co
Soft Drinks International
STiR
Strats Times, The
Sydney Morning Herald
The Age
The Australian
The Chronicle
The Conversation
The Daily Mail
The Daily Telegraph
The Herald
The New Daily
The Weekly Review
The Weekly Times
Vegconomist
Verdict Media Ltd
Weekly Times, The
Source: Euromonitor International

Health and Wellness in Australia

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LIST OF CONTENTS AND TABLES

HEALTH AND WELLNESS IN

Health and wellness in 2021: The big picture

2021 key trends

What next for health and wellness?

Table 2 Sales of Health and Wellness by Type: % Value Growth 2016-2021

% current value growth

Better For You (BFY) 3.5 2.3 12.2

Table 3 Sales of Health and Wellness by Category: Value 2016-2021

- HW Packaged Food by 10,162.8 10,444.7 10,820.7 11,145.8 11,510.7 11,856.5

Table 4 Sales of Health and Wellness by Category: % Value Growth 2016-2021

% current value growth

- HW Packaged Food by Type 3.0 3.1 16.7

Table 5 Sales of Health and Wellness by Prime Positioning: Value 2016-2021

Beauty From Within 34.4 37.9 39.8 41.8 41.6 43.4

% current value growth

Beauty From Within 4.2 4.8 26.2

Table 7 NBO Company Shares of Health and Wellness: % Value 2017-2021

% retail value rsp

Coca-Cola Europacific - - - - 8.6

Monde Nissin 0.7 0.7 0.8 1.0 1.1

Table 8 LBN Brand Shares of Health and Wellness: % Value 2018-2021

% retail value rsp

Coca-Cola No Sugar Coca-Cola Europacific - - - 3.2

Gatorade (PepsiCo Schweppes Australia Pty 1.3 1.3 1.1 1.1

Artisanal Artisanal 3.5 3.4 3.5 3.5

Table 9 Distribution of Health and Wellness by Format: % Value 2016-2021

% retail value rsp

Store-Based Retailing 96.1 96.1 96.0 95.9 95.8 95.7

% retail value rsp

Store-Based Retailing 96.5 95.6 92.4 96.4 93.0

Table 11 Forecast Sales of Health and Wellness by Type: Value 2021-2026

% constant value growth

Better For You (BFY) 1.7 1.5 7.9

Table 13 Forecast Sales of Health and Wellness by Category: Value 2021-2026

- HW Packaged Food by 11,856.5 12,046.1 12,234.6 12,433.0 12,640.9 12,855.7

- HW Beverages by Type 6,547.6 6,769.4 6,989.1 7,212.6 7,435.6 7,659.6

% constant value growth

- HW Packaged Food by Type 1.6 1.6 8.4

- HW Ready Meals 2.2 1.9 9.9

Beauty From Within 43.4 27.9 27.9 28.0 28.1 28.2

% constant value growth

Beauty From Within -35.7 -8.3 -35.1

Vision Health 112.7 22.4 175.2

Summary 1 Research Sources

ABS - Australian Bureau of Statistics

Allergy & Anaphylaxis Australia

Australian Bureau of Statistics

Australian Competition & Consumer

Australian Taxation Office

Biological Farmers of Australia

CSIRO Food & Nutritional Sciences

Department of Agriculture, Fisheries &

Department of Agriculture, Fisheries &

Department of Foreign Affairs & Trade

Food Standards Australia

Food Standards Australia New Zealand

Future Food Systems

George Institute for Global Health

Heart Foundation of Australia

Lactation Resource Centre

National Center for Biotechnology Information