Generation Next Thinking: Winning in the new age of health and wellness
“You have a million problems until you have a health problem. Then you have one problem.”
This saying captures a hard-hitting truth: nothing is more important than our health. As health and wellness takes centre stage, it’s no longer about chasing the latest diet craze, juice cleanse or fitness fad. Now, consumers of all ages are embracing a more holistic approach to well-being—one that spans everything from gut health and muscle building to mental health and weight loss. This shift presents a significant opportunity for grocery retailers. After all, what better place for products and services that support overall health than the grocery store?
The numbers reflect the growing importance of this trend. Globally, the health and wellness market was estimated at US$6.8 trillion in 2024 and is expected to increase to nearly $9 trillion by 2028, according to Statista. A 2024 report by Dunnhumby, Better for You (Customer), You (Brand) and You (Retailer), reveals that health-conscious shoppers account for about 20% of the $1.7-trillion grocery industry in the United States. Previous research from Dunnhumby found nearly two-thirds (64%) of U.S. consumers rank physical health as their most important need—ahead of mental health (46%) and their long-term financial future (32%). In Canadian Grocer’s 2025 GroceryIQ Study, 73% of Canadian shoppers identified as being health-conscious—a five-point increase from the previous year.
READ: Consumers are seeking food and beverage products that marry wellness and decadence
“Health and wellness is definitely a growing opportunity and likely a faster-growing need state for consumers compared to the general grocery market,” says Erich Kahner, director of competitive strategy and insights at Dunnhumby. “So, it’s a [key area] for growth. That’s true in the U.S., Canada and globally, but the growth rates in the Americas are even higher than in other countries.”
Damon Tanzola, senior vice-president, real estate and health & wellness at Calgary Co-op, notes that people of all ages are embarking on health and wellness journeys at different stages of their lives. “That’s partly because there is so much education available, whether people are getting it online, through shopping at stores or speaking with nutritionists,” he says. As consumers become more educated about health and wellness, Tanzola adds, “the focus isn’t just on nutrition and supplements—there’s a massive movement towards mental and physical health.”
Retailers aiming to lead in this space must embrace every aspect of the health and wellness journey. “The rules have changed,” says Patrick Rodmell, partner and president at retail consultancy and creative agency Rodmell & Company. “Grocers have to stop thinking of themselves as just a warehouse of sustenance and indulgence. You want to own the knowledge and solutions for customers because food is such a key part.” Leaders in this space, he adds, will be retailers that “develop a comprehensive strategy that includes products, services and solutions for people to get healthy and stay healthy—both physically and mentally.”
The evolving health-product landscape
As the demand for holistic health and wellness grows, the grocery sector is seeing both the continuation of established trends and a shift toward addressing emerging health needs. According to Dunnhumby’s Kahner, these longstanding priorities remain: “Eating food that is less processed, more natural and organic because consumers recognize it’s better for the body and better for the planet. That’s been a trend for a while.”
Ran Goel is CEO of Mama Earth, an independent online grocer that focuses on local, sustainable, organic groceries. He started out in the urban farm and delivery space 15 years ago with Fresh City Farms, which acquired Mama Earth in 2022. One major shift Goel has noticed over the years is there is much broader consciousness and knowledge around what is truly healthy.
“The idea that we need to eat more whole foods, real foods and less processed foods, I think people really understand that now,” Goel says. “It’s less of an education for the customer now and more about how we can help them act on that knowledge.”
Another trend he has observed is a focus on functional foods. “People are becoming more sophisticated in drawing specific connections between food and gut health, food and brain health, and food and muscle building,” says Goel. “There is much more of a focus on getting specific kinds of foods for specific kinds of objectives. There’s always been a niche market for that, but it’s becoming more mainstream.”
For gut health, for example, Mama Earth customers are buying products such as raw turmeric, sourdough and other fermented foods. Goel notes, however, that there is one aspect of healthy eating that hasn’t changed: “It’s always good to eat your fruits and vegetables,” he says, noting that fresh produce accounts for more than half of Mama Earth’s revenue.
On the packaged-food front, Rodmell points to a new development that will make it easier for shoppers to identify healthier options: Canada’s upcoming front-of-pack nutrition labelling requirements. Under the new rules—taking effect in January 2026—prepackaged foods and beverages high in sugar, sodium and/or saturated fats must display a clear and concise nutrition symbol on the front of the package. “The baseline for retailers is going to be to have a better range of products that address specific dietary needs—for example, gluten-free, lowsodium and low-sugar items,” he says. “Many of these products are already in stores, but they need to showcase them much more, obviously, in this new environment.”
Getting a boost with supplements
In the world of supplements, people are discovering ways to elevate their physical and mental well-being. Calgary Co-op, which offers more than 5,000 natural health products in its Natural Choice store-within-a-store, is seeing rising demand for creatine—a substance naturally found in muscle cells and known for enhancing exercise performance and boosting muscle mass. While creatine was once primarily associated with bodybuilders, Tanzola says new research shows it can support cognitive function as well. This has sparked greater interest among women, who naturally produce less creatine than men.
READ: A look at what’s helping drive the vitamins and supplements boom
Alongside creatine, protein powders are seeing an uptick, which Tanzola attributes to more options featuring cleaner ingredient decks, less sugar, fewer fake ingredients and more plant-based options. “People are supplementing more because they understand what they’re missing throughout the day—whether they missed a meal or didn’t get all the nutrients they needed in that last meal,” he says. “Again, it comes down to being educated. They understand how many milligrams they had of something per day. And that’s exciting—it’s almost like a little science test every day. Did I get enough carbs and proteins and all the other things that I need?”
This includes young consumers, who are jumping on the macro-tracking bandwagon. “Even my teenagers are now questioning what we’re serving for dinner, asking, ‘What’s the carb and protein ratio? I have to go to the gym later and I need to fuel up,’” says Tanzola. “When we were growing up, it was consumption for pleasure more than consumption for fuel.”
Gen Z: No to artificial colours, yes to healthy guts
While their gen-X parents may have grown up on sugary cereals and processed foods, generation Z is much more mindful about what they put in their bodies.
Sherry Frey, vice-president of total wellness at NIQ, points out that generation Z’s buying habits are evolving in fascinating ways. The demographic, who are currently 12 to 27 years old (NIQ tracks 18 to 27), index high on attributes such as no artificial colours, flavours and ingredients, along with being humane and cruelty-free. “We have also seen them index high on health-related products with claims around the microbiome, eye health and mental health,” Frey notes.
For Frey, that generation Zers are already prioritizing wellness-focused products, despite having relatively limited disposable income, speaks volumes, especially as they will continue to move into their peak earning years.
“We’re hypothesizing that there is a higher level of awareness than any other demographic ever had,” she says. “They’re already thinking about aging and they’re aware of rising cancer rates among young people, especially colorectal cancers. They’re asking, ‘What can I do today, proactively and preventatively?’ We think this will continue to grow dramatically as they start earning more and have more discretionary income to spend where their priorities are in health.”
Jo-Ann McArthur, president of Nourish Food Marketing, notes there is an opportunity for food and beverage manufacturers to develop products aimed at gen-Z women’s health. “Generation Z is just not accepting of their needs not being met, so they’re demanding more,” says McArthur. “They’re also the tech-first generation, so they’ve got the wearables, the continuous glucose monitors, the Apple watches. They know where they’re at in their menstrual cycles. So, they’re expecting food and beverage companies to support them in those journeys as well. And they’re going to be more demanding than boomers who went through menopause unassisted.”
GLP-1 drugs: Grocers must do more with consumers eating less
A major trend reshaping consumer behaviour is the rising popularity of GLP-1 (glucagon-like peptide 1) drugs. Originally developed to treat diabetes, these medications are gaining attention for their appetite-suppressing effects and ability to aid weight loss.
A 2024 survey by Dalhousie University’s Agri-Food Analytics Lab and Caddle, found about 10% of the adult population in Canada uses a GLP-1 drug, or between 900,000 to 1.4 million people. Of those, 45.5% said they are eating less, 22% claimed to eat at restaurants less often, and 16% reported buying fewer groceries. Among the items they’re cutting out are sweet bakery goods, packaged cookies, chocolate and candy, salty snacks, carbonated soft drinks and alcohol.
NIQ has also observed declines in consumption; however, Frey spots opportunity for grocers. “The initial reaction [to GLP-1 drugs] was ‘this is terrible because these people are eating less,’” Frey says. Now, retailers understand these are valuable shoppers with a household of people. “You want to support them on their journey. You want them in your stores. So, how do you help them?”
One way is to offer more products that support their digestive health, as many consumers on GLP-1 drugs have digestive challenges such as nausea and constipation. McArthur says soothing teas are one example. “Hydration is also a huge issue with this group, but consumers find water on its own boring,” she adds. An opportunity here is enhanced hydration—adding functional benefits such as adaptogens and electrolytes. “[People on GLP-1 drugs] don’t want juice or soda, so how can you elevate water a bit?” says McArthur.
Water gets a glow up and plant-based finds its groove: Nourish Food Marketing’s 2025 trends
Grocers can also capitalize on GLP-1 users’ shift away from restaurants, with McArthur highlighting an untapped opportunity in the home meal replacement (HMR) area. “If one person is on the drug, it affects the whole family—and food is where we connect and socialize,” she says. “People who are on these drugs are eating at home more, but they’re eating a lot less. How do you have an experience where you’re sharing food and connecting through food in a way that works for couples and families? How do you bring the joy back into that? So, there could be an HMR strategy where a retailer comes up with family meals and small plates—something that’s going to work for everybody.”
Another avenue is supporting consumers when they stop taking GLP-1 drugs. Frey explains that people on these medications tend to lose muscle mass so, if they gain weight, they’re adding fat to that deficit. Whether it’s through in-store dietitians or pharmacists, she recommends retailers “talk about what’s important as part of their weight loss and GLP-1 journey … and help them through the whole process.”
Beyond the aisle: How grocers can tailor health and wellness services
As consumers prioritize health in all aspects of their lives, grocers are recognizing the growing importance of personalized services that go beyond the products on their shelves. Dunnhumby’s report notes retailers are investing in services such as personalized coaching, nutrition, healthcare and fitness classes. In the United States, for example, the retailer Hy-Vee and healthcare technology provider Soda Health launched Smart Benefits, allowing customers to receive personalized benefits in areas such as fresh produce, over-the-counter pharmacy items, clinical services and nutritional counselling. They also receive personalized health support, including reminders about health screenings and prescription refills.
Even smaller retailers and those without pharmacies can offer personalized health advice. “They have a lot of customer data, so they’re able to look at the types of food products people are purchasing … and through personalized offers and communications, they can help people understand what the next best, healthiest product is,” says Dunnhumby’s Kahner.
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Calgary Co-op is putting additional resources behind personalized advice. The retailer has long had Natural Choice advisors in dedicated areas of the stores who educate customers on natural health products. “Natural Choice advisors are solely focused on the Natural Choice area and the products and services we provide there,” explains Tanzola. Now, Calgary Co-op is developing plans to have either nutritionists or dietitians in its stores who can educate customers and create personalized menus and food plans for members, which will span the grocer’s full product offering.
As people are no longer just seeking advice from doctors and pharmacists, Rodmell advises grocers to broaden their view of health and wellness consultation. For grocers, he envisions an app that invites customers to create a health profile by answering a few basic questions. The app would help them choose a food plan and create a shopping list that’s tailored to their health needs. “Grocers can tap into people’s profiles and provide meaningful advice, counsel and even promotions on certain items that align with their health needs,” says Rodmell. “The personalization of health advice combined with the integration of technology ... that’s the Holy Grail for grocers.
Generation Next Thinking is an ongoing series that explores the cutting-edge topics that are impacting grocery retail today and in the future.
This article was first published in Canadian Grocer’s March/April 2025 issue.
