Nestlé has seen sustained growth over the pandemic period, largely driven by selective acquisitions and divestments that have allowed the company to foster its premium and specialized product lines. The acquisition of Essentia in March 2021 is a prime example, the move having come off the back of the Nestlé Waters North America divestment and saw Nestlé branch into the targeted functional bottled water market: a move that will garner favor with 31% of health-conscious consumers in North America that are always influenced by a products’ health credentials*, according to a survey by GlobalData.
Nestlé has also sought continuous premium development of its pet care brands. This focus has allowed it to capitalize on the ‘pandemic puppy’ boom, which, as of March 2021, has seen nearly a third (31%) of global consumers adopt or buy a pet over the last year*.
Carmen Bryan, Consumer Analyst at GlobalData, comments: “Nestlé’s household name, Purina, is positioned as nutritionally enriched, tailored to specific needs, and responsibly sourced – the same claims we see in human products. This has built strong brand loyalty and ‘expertise’. Consumers are increasingly conscious of what their pets consume, thus designing tailored and nutritious premium pet foods will go a long way in reassuring these new pet owners.”
During the COVID-19 pandemic, many consumers are trading up for products they deem to be better quality or have added health benefits. GlobalData’s research reveals that two in five (38%) global consumers want information on a product’s health credentials or effectiveness of the ingredients from brands*, while 37% agree that high-quality products are ‘good value for money’*2.
Bryan concludes: “Consumers are willing to pay more for products they deem to be good quality. Whether for its pet care range or beverage acquisitions, Nestlé has leveraged ‘better-for-you’ claims to deliver premium products that will continue to safeguard the company against ongoing COVID-19 uncertainty.”
*All data is from GlobalData’s 2021 Consumer Survey, March 2021
*2- Refers to all surveyed consumer categories across: food, beverages, pet care, personal care, household products, baby care and tobacco
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