During the peak of economic recession, most industries felt the pinch badly. However certain segments of health and nutrition industry continued to thrive. There were reasons for optimism in certain sections of health products. It is not just during the economic recession of 2008, the health product market has a history of performing well despite the dips in the economy. Several Investment companies did an extensive research on the reasons for this anomaly and formulated a report based on the findings.
In a survey conducted by a reputed market research firm, the findings say that 98% of American households spend at least a small portion of their household income on healthy foods. According to that report an average consumer spends over 50% of his food budget on healthy foods. This trend has remained the same during the ups and downs in the economy. Based on the research the market research company lists 3 prime reasons for this anomaly. These reasons will help the companies in the nutrition industry to position their products in a better way.
1) Spending Money in Health is a Wise Investment: For most Americans health is of paramount importance, the study showed that people are giving more importance to health, especially preventive health as an area to put their dollars. People have reached a stage where they realize that better health is important for the advancement of their careers too. Better health, better physical appearance and more energy are essential to succeed any area, and hence people are willing to spend on this segment irrespective of the economic scenario.
2) People Believe that they can control their health: During the 2008 recession the sales of organic foods was not declining like other segments, it in fact witnessed a robust growth. The reason for the robust performance of organic food was because of the consumer perception. According to the consumers purchasing healthy organic food was a simple way of having a feel of control over their lives and health. Unlike several other factors in their life that are beyond their control, spending on healthy organic foods helped them to have a sense of control over their health.
3) Guilt Free Indulgence: Unlike spending on luxuries like big vacations, high end sports car and gadgets, spending in healthy foods will not cause any guilt. Even during a very tight budget, consumers cut down spending on several other areas, but continued to spend in healthy foods. These healthy foods are often considered as a guilt free indulgence even during the economically tight situations.