There is a perception that healthy food is more expensive than the regular food. This is not entirely accurate. Healthy prepared food often costs more, but if you cook your own food, you do not need to pay an arm and a leg. Healthy eating requires more time and effort, which is something many people are not willing or able to invest.
This is where the food industry comes in. A study conducted by Nielsen and USA Today on food purchase habits, found that younger consumers are more interested in healthy food. Furthermore, they are willing to spend more to buy healthy food:
“The most health-centric are Generation Z — consumers under age 20 — with 41% saying they would willingly pay a premium for “healthier” products. That compares with 32% of Millennials (ages 21 to 34) and about 21% of Baby Boomers (about 50 to mid-60s).”
You can bet you bottom pantry shelf that food companies are excited about this opportunity. It is hard to increase profits in the food industry. The population does not grow substantially from year to year, and there is only a set amount of calories people can consume per day. By selling products at higher margins, companies can continue to grow their profits.
How can a company increase its revenue on products?