Business opportunities amidst challenges
Notwithstanding the challenges of a higher-cost, health-focused market, businesses can turn these into opportunities for innovation, customer loyalty, and competitive advantage. It is clear that price is increasingly trumping brand loyalty and that consumers have the means to independently seek out those products that they believe provide the best balance of quality and affordability. In these circumstances, businesses that successfully identify their brands with good value for money can gain market share at the expense of rival products which are perceived to be more costly.
Furthermore, businesses that can meet the health and affordability needs of consumers will be among the winners in the coming years. Once again, innovation has a role to play with low-salt and sugar products likely to become more popular as will those with positive health aspects such as cholesterol-reducing ingredients. However, against a backdrop of affordability concerns, there is unlikely to be a significant price premium available for such innovation. The reward will mainly come in the form of retained or increased market share while maintaining current price points.
A recent EY survey highlights a significant opportunity for Ireland's healthcare sector to adopt digital technologies, addressing public concerns over healthcare costs. With 87% of consumers worried about rising healthcare expenses, there's a strong appetite for digital health solutions that could lower costs and enhance access to quality care.
Summary
With affordability still very much on households’ radar, businesses will need to adapt their product and service offering to meet this reality while simultaneously exploring the opportunities offered by the rise of the health-conscious consumer.