New research from Nextin has revealed that consumers are increasingly choosing functional foods, drinks and supplements based on the specific ingredients they contain, rather than the brand selling them.
The Nextin Functional Ingredient Insights Report, based on a survey of 1204 US consumers, covered 191 individual ingredients and examined consumer preferences, purchasing behaviours and future market opportunities.
Traditionally, consumers might choose a particular protein bar, energy drink, or supplement because they recognise and trust the brand; however, this new research suggests consumers now look at ingredients to decide whether products are worth buying.
The report found that 66% of US adults had consumed a supplement, functional food, or functional beverage in the previous three months.
Nineteen per cent of these consumers had identified the product brand as one of their most important purchase factors, compared with 33% who said a specific ingredient or ingredient brand was among their most important purchase factors.
However, the research also showed that price (49%) and taste (39%) still remain more influential than ingredients overall.
“In a market that’s flooded with new brands and new consumers, the functional nutrition space is ripe for growth and disruption,” said Nicole Hill, VP of Strategy, Insights and Innovation at MarketPlace, the company behind Nextin Research.
The mainstreaming of functional nutrition is rerouting the path to purchase, with consumers looking to ingredients to evaluate quality and efficacy.
"When the maxxing trend starts to max out, we’ll see products that didn’t make it into consumer regimens fall out of the category. Brands and ingredients that have invested in human studies will rise to the top.”
A shift towards specific ingredients
Nextin said that consumers are increasingly engaging with individual ingredients rather than relying on broad categories such as nootropics, adaptogens or functional mushrooms.
For example, they will seek L-theanine rather than nootropics and Lion's mane rather than functional mushrooms.
“Consumer expectations have risen alongside consumer education,” Hill explained. “Today, consumers are engaging with ingredients individually rather than categorically."
When there are a few hundred functional beverage options available in a single store, it’s no longer differentiating to highlight broad ingredient categories like ‘adaptogens’ on pack.
With consumers becoming more knowledgeable about individual ingredients and their perceived benefits, brands may need to be more specific about formulations and communicate the rationale for including particular ingredients.
More educated consumers could also benefit ingredient suppliers — if a branded ingredient has a recognisable name, supporting research and a clearly communicated benefit, it could help differentiate a finished product in a crowded marketplace.
Clinical evidence as a competitive advantage
Nextin also found that 30% of consumers surveyed prioritised clinically validated ingredients when choosing functional nutrition products.
This rose to 45% among consumers who use at least two types of functional nutrition products. 
For those in the nutraceutical space, this points to the potential value of human studies and evidence-backed ingredient positioning.
Using clinical evidence as a differentiator helps supplement brands build trust and stand out in an increasingly crowded market. Nextin identified a sub-category of consumers — Branded Ingredient Insiders — that comprised 16% of consumers in the study.
These consumers were more likely to consume functional foods and beverages, but also more likely to "trial and churn" than average, with 37% starting a new supplement (1.57 times the market) and 26% discontinuing supplement use (1.77 times the market) in the past 12 months.
Ingredient awareness may help companies attract consumers, but won't guarantee long-term retention. Thus, products still need to meet expectations around perceived efficacy, quality, taste and overall experience.
Ingredient opportunities: protein and sustainability
Half of the consumers surveyed said that they were trying to increase the amount of protein in their diet.
When asked about preferred protein source, 57% said they would prefer egg, versus 52% for poultry and 51% for beef.
Nextin said that egg protein remains underutilised in the broader packaged food and beverage market, despite its established role in sports nutrition.
This suggests an opportunity for manufacturers to explore egg protein in a wider range of products; for example, they might investigate egg protein for high-protein snacks, meal replacements, or other packaged foods where the formulation, taste, texture and intended use make sense.
Sustainable sourcing also played a large role in consumer purchasing decisions. Sixty-three per cent said sustainable sourcing positively influences their purchasing and more than one in four (26%) said they would pay a premium for products containing sustainably sourced ingredients.
Sustainable sourcing could therefore also be a way to differentiate products and support premium positioning. For ingredient suppliers, this could strengthen the commercial case for demonstrating traceability and responsible sourcing practices.
For manufacturers, it suggests that sustainability credentials may influence consumer choice alongside functionality and scientific evidence.
Key takeaways
As consumer demand changes, retailers, brands, manufacturers, suppliers and investors are looking for ways to mitigate risk and plan for the future.
Nextin's findings suggest ingredient transparency and scientific substantiation could become increasingly important differentiators in the functional nutrition space.
However, higher supplement discontinuation rates among ingredient-engaged consumers highlight the importance of meeting their expectations to encourage long-term use.
“Purchase data reflects where the market has been; Nextin Research focuses on where it is going,” said Tracy Landau, MarketPlace’s founder and President.
Innovators, investors and business leaders need to plan beyond what’s selling today. With proprietary consumer intelligence and a one- to three-year outlook, Nextin clarifies the growth opportunities of tomorrow.
The Nextin Functional Ingredient Insights Report is available for licensing now.
