Over the past decade, Australian consumers have become increasingly health-conscious, and this shift is reshaping the FMCG landscape in powerful ways. It’s no longer enough for a product to taste good or be convenient. Shoppers are actively seeking options that support their wellbeing, fit into their lifestyle choices, and align with their values.
This growing demand has fuelled the rise of the “better for you” category, a broad umbrella spanning everything from organic produce to functional foods fortified with protein, probiotics, or other nutritional benefits. For FMCG brands, the message is clear: adapt to these preferences or risk being left behind.
Why Consumers Are Driving Change
Australian shoppers are more informed and proactive about their health than ever before. Whether it’s managing dietary restrictions, boosting immunity, or simply wanting to feel better day-to-day, the demand for healthier alternatives is strong across all demographics. COVID-19 accelerated this shift, with more people prioritising immunity, mental health, and sustainable eating habits.
Importantly, being health-conscious doesn’t mean cutting out indulgence—it’s about finding balance. That’s why the “better for you” movement resonates so strongly. Consumers want snacks, treats, and meal options that still deliver on taste but with added functional or nutritional benefits.
What We Saw at Fine Food Australia 2025
This year’s Fine Food Australia event in Sydney offered a clear snapshot of where the industry is heading. One of the biggest shifts we noticed? The focus is no longer about what’s been taken out of food; less sugar, fewer additives, no gluten. Instead, the conversation has moved toward what’s being added back in.
Brands are investing in premium ingredients, smarter processes, and equipment innovations that elevate the end product. It’s about value creation, not just value extraction.
Sam Watson from Proud as Punch Studio summed it up perfectly when it comes to packaging and branding:
“What really stood out for me this year was the need to be different. The hall was full of similar products, familiar claims, and recycled USPs—and in that sea of sameness, the brands that cut through did so because they were bold enough to be clear, distinctive, and unique. The strongest players knew exactly why they were there, who they were there for, and how to show up for them. They didn’t need the biggest stall or the flashiest spend—just sharp positioning and a clear story.”
From our perspective at Consult Group, three key takeaways emerged:
- It’s not enough to make a product. Customers need to see and feel the value in the product, the brand, and the experience.
- We’re in the age of out-differentiating, not out-spending. Clarity, courage, and creativity are the real differentiators.
- Investing in execution, from formula to packaging to positioning – pays off when the whole experience tells a compelling story.
“Seeing brands put love back into their offerings, charge a fair price, and proudly own their space was a powerful sign of where the industry is heading.”
The Growth of Sub Categories
We’ve seen firsthand how “better for you” positioning attracts new shoppers into entire sub-categories. It’s not just about stealing share from existing products—it’s about expanding the category itself.
Take bakery, for example. Traditionally dominated by white loaves and sweet treats, it has now evolved to include high-protein bread, gluten-free options, and products with added fibre. These innovations don’t just compete with existing lines – they invite new customers into the category who may have previously avoided it.
The same is happening in frozen foods, where health conscious consumers are embracing plant-based meals, portion controlled snacks, and fortified frozen desserts. Sub-categories are growing because “better for you” options are expanding the shopper base, not just trading shoppers within the aisle.
Functional Foods are No Longer Niche
Closely tied to this is the explosion of functional foods, products offering benefits beyond basic nutrition. Probiotics, prebiotics, fortified cereals, vitamin enriched beverages, and protein packed snacks are now mainstream and growing fast.
One of the clearest examples is the rise of protein across almost every category. Once the domain of powders and shakes, protein now shows up everywhere:
- Protein chips
- Protein waters
- Protein ice creams
- Protein-enhanced bakery items
Consumers have embraced protein as a shorthand for satiety, strength, and better nutrition. Retailers, in turn, are expanding shelf space to meet this demand.
How Brands Are Adapting
Forward-thinking brands are responding to these shifts in several ways:
- Reformulating classics: Adding protein, fibre, or reducing sugar without compromising taste.
- Launching new ranges: Developing entirely new product lines that align with health-conscious values (organic, vegan, allergen-friendly).
- Smarter packaging: Highlighting functional benefits clearly on pack—“high in protein,” “with probiotics,” or “low GI”- to make the shopper decision easy.
- Cross-category innovation: Not limiting functional benefits to traditional categories, but applying them broadly (think protein in ice cream or probiotics in juice).
These strategies are helping brands capture not just attention, but long term loyalty from health conscious shoppers.
The Retailer’s Perspective
Retailers have quickly realised that “better for you” products grow the pie. By adding these options, they attract new shoppers, increase basket size, and stay relevant in a changing market. That’s why we’re seeing entire sections of shelves being redesigned—with “healthier choice” callouts, secondary displays, and even new category structures.
For brands, this creates opportunities – but only if you can clearly demonstrate how your product brings incremental growth, not just substitution.
What This Means for FMCG Brands
If you’re a brand looking to enter or expand in the Australian market, the rise of health-conscious consumers cannot be ignored. The “better for you” movement is no longer a trend, it’s a core driver of FMCG growth. The question to ask yourself is: where does my product fit into this shift?
- Does your product deliver on a functional benefit that resonates with consumers?
- Can you credibly play in the “better for you” space without losing taste appeal?
- Are you ready to pitch your product as a category growth driver, not just another option?
How Consult Group Can Help
At Consult Group, we specialise in helping FMCG brands position themselves for success in this evolving landscape. Whether it’s refining your product story, identifying the right retailer opportunities, or building the data to prove consumer demand, we guide you through every step.
The rise of health-conscious consumers is reshaping shelves—but it’s also creating some of the biggest opportunities we’ve seen in years. If you can deliver authentic, “better for you” products with functional benefits, the rewards are significant.
Is your brand ready to tap into Australia’s growing appetite for health and functionality? Let’s talk. Our team can help you refine your strategy and get your product where it belongs, in the hands of health conscious shoppers.
