How wellness brands can capitalise on the ‘Roaring 2020s’
Written by Marie Allen-Moyo
A hundred years ago, the ‘Roaring Twenties’ was a decade of prosperity. It was a time of economic, technological, and societal progress. From art deco to flappers, to the birth of mass consumer advertising and women’s right to vote! A hundred years later and there’s another boom predicted for the 2020s.
Bring. It. On.
Despite a rocky start (ahem, pandemic, ahem), the light at the end of the tunnel is becoming brighter. Some real positives have emerged. For example, over the last 18 months, we’ve seen an increased importance placed on our personal and collective wellbeing, escalating the opportunity for an already burgeoning industry. For example, while working with Headspace, we educated consumers on how mental health is just as important as physical health. During a year of draining bad news, learning the value of slowing down and enjoying the little things was the silver lining. Wellness is now firmly front and centre within the news agenda and the brands who get it right will be major benefactors of this boom.
McKinsey estimates the global wellness market is worth more than $1.5 trillion, with annual growth of 5-10%. A rise in both consumer interest and purchasing power presents tremendous opportunity. In contrast, the yearly revenue of the global market size of alcoholic beverages (worth $1.49 trillion) decreased by 13.4%.
To capitalise on the opportunity, brands need to consider a number of factors, so here is a whistle-stop tour of the top trends to be mindful of (pun intended.).
Consumers’ preference for personalisation has trickled through from other industries into the wellness space. An influx of information online and on social media has educated consumers on their individual needs. They know their skin, hair and body best and want their requirements to be catered for. As they realise that one size does not fit all, customisation offers a solution for people who have traditionally not be catered for by mass-market products. Technology allows wellness brands to offer personalised experiences, whether it’s access to a PT, spinning class at home or wearable tracking habits.
Despite being digital natives, Gen Z still wants a mix of digital and in-person experiences from brands, according to a report by Bain and Depop. Personalisation presents the opportunity to give brick-and-mortar stores a new lease of life by turning them into spaces where consumers can experiment with products and new technologies – from simple diagnostic quizzes to sophisticated technology that analyses skin type, tailoring recommendations to customer needs.
The shift to digital channels is happening at speed. The majority of categories continue to project more growth in e-commerce than through other channels over the next few years. Creating campaigns that translate across different platforms will ensure that you meet your consumers where they are. Our client Noom, the behaviour change programme, provides the accessibility of a digital app with the support of coaches. It is challenging the traditional models that use methods like in-person weigh ins. Lululemon is tapping into the lucrative YouTube market via a partnership with Joe Wickes. The brand recently announced the nation’s favourite online PE teacher as their global ambassador in line with other activity to boost their virtual presence. Lululemon has also launched a virtual community called Community Carries On, allowing customers to stay connected with the brand now there’s less footfall on the high street.
CBD is a fast-growing sector in the industry and one that presents an exciting prospect. The current value of the CBD market in the UK has reached £300 million, larger than the total UK Vitamin D (£145m) and Vitamin C market (£119m) combined. This number is expected to triple by 2027.
At present, more than 8 million Brits take CBD, either for health concerns or relaxation purposes, and demand continues to increase. CBD can be helpful for a range of health issues including anxiety, inflammation, acne, and psoriasis.
There has been a lot of buzz and media conversation around CBD products, but no brand has fully claimed this space and capitalised on the opportunity it provides. CBD’s potential for integration and product collaboration is essentially limitless, given the right positioning and product innovation.
There has been a fusion of personal, social, and environmental wellbeing. Many consumers want greater transparency in the products they purchase and want to know where they come from and how they’re made. A combination of environmental awareness and greater knowledge of wellness is driving the demand for natural products.
This is true across all areas of wellbeing from activewear made with organic, sustainable materials to natural beauty products, free from synthetic chemicals. This trend shows no sign of slowing down with established brands releasing natural product lines to keep up with challengers.
The 2020s are set to be the decade where wellness comes into its own. The lessons of slowing down during a global pandemic will reverberate through all areas of life. Brands that can get the balance between digital and physical, personal and accessible, will be the winners in this exciting sector.