Wired for Wellness
More than half of US adults use wearables - and it’s silently influencing what ends up in their shopping carts.
The majority of adults in the US own wearable technology.¹ Health is the #1 reason consumers purchase wearables.² They give users real time data on their health and wellness through biometric sensors. Smart watches are the most popular wearable. Consumers use these devices to monitor mental/social well-being, track lifestyle and habits, manage weight, and support energy. Exercise/movement, food consumption, concentration, and sleep are the most common metrics wearables are used to track.¹
What’s most interesting is that consumers that use wearables:
spend 22% more on personal healthcare.¹
buy 13% more units¹
average 6 more shopping trips¹
This is an interesting link because it presents an opportunity for marketers to create products suited to these customers’ health goals. I can’t be alone in this thinking because there are CPG brands capitalizing off the shift in consumer behaviour.
Let’s explore the rise of wearable tech and its influence on consumer spending. We’ll discuss four trends in wearable tech and their influence on CPG, highlighting brands that are delivering on these trends.
Heart Rate Monitoring - Fuelling Performance Tracking
One of the first biomonitoring tools available in consumer tech was heart rate monitors. Heart rate monitors have been around since the mid 70s. They were popularized in the 80s in athletics, with the popularity of high intensity training. Most wearables use photoplethysmogram (PPG), which is a light to track heart rate through the skin. Fitbit for example offers multi-path optical heart rate sensors on their Versa 4 model. The feature is universal across wearables, Fitbit is one example among many.
Heart rate monitoring can inform about a user’s exercise intensity and fitness level, their recovery and sleep, and even stress. Consumers often use their heart rate to measure the effectiveness of their workouts. Especially during cardio workouts, where the goal is maintaining a specific heart rate for a sustained period of time.
But tracking heart rate is only half the equation. More and more consumers are turning to cognitive enhancers to support the focus needed to reach their target heart rates during workouts.
Nootropics - Cognitive Enhancers for Fitness Optimization
Consumers have been seeking supplements to support their fitness - nootropics being one of these supplements. Nootropics are medicinal substances that support cognition, learning, and memory by improving the brain’s supply of glucose and oxygen.³ Although the term nootropic may sound new, most consumers are probably already using them. Caffeine and L-theanine, both commonly found in energy drinks, are examples of nootropics. And consumers are looking for more and are the driving force behind the 14.6% CAGR expected in nootropics from 2023 to 2030.⁴ Nootropics are used to boost focus which is a huge benefit to athletes in achieving fitness goals. Nootropics, often in the form of caffeine, can enhance focus allowing consumers to “lock in” to their work outs to achieve their desired sustained heart rates.
Brite Drink
Brite Drink is standing behind this trend by offering consumers naturally derived nootropics in their canned seltzers. Each can touts 100mg l-theanine and 100mg of caffeine to deliver a balanced source of energy and focus without feeling jittery or experiencing a crash.
While consumers are choosing nootropics to enhance focus during workouts, they’re also doubling down on sleep to support recovery.
Measuring Sleep - Restorative Support
Sleep is another metric health-conscious wearable users are tracking using heart rate monitors. The Apple watch is one of many devices on the market that uses photoplethysmogram (PPG) to monitor sleep. Tracking heart rate can determine the quantity and quality of sleep. As the body is drifting into sleep, the heart rate slows to its resting rate. During deep sleep, heart rate drops 20%-30% below resting.⁵ Sleep helps the body recover from activity, giving the body a chance to regenerate and build muscle. It supports hormone regulation in the body, affecting mood. It supports your immune system, breathing, and even your appetite.⁶ It’s no surprise Dr. Huberman suggests sleep is the most powerful tool for well-being.
Sleep Supplements - Functional Ingredients for Recovery
With the rise of devices tracking the quality of sleep, comes the 5.1% CAGR rise in sleep supplements.⁷ Sleep supplements commonly include ingredients such as melatonin, valerian root, chamomile, and magnesium. The body produces melatonin naturally. Melatonin naturally rises in the body to promote sleep - it doesn’t actually make the body fall asleep. Melatonin is best used short term, especially to help overcome jet lag.⁸
Som Sleep
Som Sleep is delivering on the rising demand for sleep support by offering powder drink mixes formulated with functional ingredients like vitamin B6, magnesium, l-theanine, GABA, and melatonin. This combination is designed to help consumers relax, unwind, and improve sleep quality.
While sleep tracks how well we recover, hydration tells us how well we’re performing in the moment.
Sweat Sensing - Hydration Intelligence
Sweat is a newer innovation in biomonitoring. Joseph Wang and his team at UC Berkeley developed the first flexible, wearable sweat monitor in 2013.⁹ Sweat provides data to the user on their hydration levels, which could be why there’s an increased focus on hydration as a functional benefit in CPG. NIX is a wearable brand using biosensors to track users' hydration to provide personalized recommendations to optimize performance. Devices like NIX use electrodermograph technology, measuring the electricity passing through the skin which is influenced by sweat and moisture, to track wearers’ hydration levels.
Electrolytes - Riding the Hydration Data Wave
Electrolytes are minerals that help the body distribute water throughout the cells. More than half of the body is made of water, making electrolytes essential for regulating hydration.¹⁰ Electrolyte drinks are booming and are expected to grow 5.7% CAGR between 2024 and 2034.¹¹
LMNT
Brands like LMNT are behind this surge. LMNT launched with a water soluble drink mix that boasts 1000mg of sodium, 200mg of potassium, and 60mg of magnesium - delivering essential minerals to rehydrate active lifestylers.
As tech becomes more advanced, we’re seeing the next wave of biomonitoring expand beyond fitness into metabolic health.
Glucose Monitoring - Mainstream Metabolics
Glucose monitoring is being integrated into wearables too. Devices like Garmin are beginning to offer integration with continuous glucose monitoring (CGM) devices like DexCom, offering users a new way to monitor their blood sugar. Historically, CGM were prescribed to patients with diabetes to track blood sugar levels but now these devices are beginning to crack into the mainstream. Users are now able to get CGM devices without prescriptions to monitor their blood glucose levels. These devices use electrochemical biosensors to measure the glucose level in interstitial fluid, the fluid surrounding cells. They empower users with real-time data about their glucose levels to help manage blood sugar effectively - whether managing a health condition or optimizing daily wellness. 56% of GLP-1 users, a medication that treats diabetes and obesity, have reported making better food decisions while on the medication.¹² GLP-1 users are snacking less and choosing lower glycemic foods, causing major shifts in the confectionary category.
Sugar Alternatives - Glucose Conscious Candy
The increased awareness of blood sugar is impacting the way consumers purchase sweeteners. Sugar alternatives are sweeteners that don’t contain sugar and often contain little or no calories. Sugar substitutes can be broken into three categories: artificial sweeteners (like aspartame or sucralose), sugar alcohols (like xylitol and erythritol), and novel sweeteners (like monk fruit and stevia extract).¹³ Although there is some debate about the long term effects of these sweeteners, consumers are choosing these substitutes to reduce calorie intake and manage blood sugar levels.
Smart Sweets
Smart Sweets is targeting glucose-conscious consumers with low sugar confectionery made with stevia extract. Each bag contains only 2-4g of sugar - a stark comparison to the 37g of sugar in traditional confectionery.
Proactive Wellness and Predictive Spending - What’s Next for Functional CPG?
Wearable tech is ubiquitous at this point. With the cost of entry decreasing, I expect them to continue to rise in popularity. Biomonitoring offers consumers the ability to track their workouts, sleep, hydration, and glucose levels. The metrics consumers are now able to monitor are shaping what they’re choosing to buy. Categories like nootropics, electrolytes, sleep supplements, and sugar alternatives are growing. As the population becomes more predictive and proactive to healthcare - not just reactive – we’ll see more functional products launch to support preemptive healthcare.
As consumers gain more control over their health, what functional categories will emerge next?
Sources:
1: Circana. (2024). The Digital Health Consumer: How U.S. Consumers Take Charge of Personal Wellness. https://www.circana.com/intelligence/reports/2024/the-digital-health-consumer/
2: PwC. (n.d.) The Wearable Life 2.0. https://www.pwc.com/ee/et/publications/pub/pwc-cis-wearables.pdf
3: Malik, M. and Tlustos, P. (August 17, 2022). Nootropics as Cognitive Enhancers: Types, Dosage and Side Effects of Smart Drugs. https://pmc.ncbi.nlm.nih.gov/articles/PMC9415189/
4: Grand View Research. (2023). Nootropics market size, share & trends analysis report by form (capsules/tablets, powder, drinks), by distribution channel (online, offline), by region, and segment forecasts, 2023 – 2030. https://www.grandviewresearch.com/industry-analysis/nootropics-market
5: Corliss, Julie. (January 29, 2021) How Does Sleep Affect Your Heart Rate? Harvard Health Publishing. https://www.health.harvard.edu/blog/how-does-sleep-affect-your-heart-rate-2021012921846
6: News in Health. (April 2013). The Benefits of Slumber: Why You Need A Good Night’s Sleep. https://newsinhealth.nih.gov/2013/04/benefits-slumber
7: Allied Market Research. (2024). Sleep aid supplement market size, share, competitive landscape and trend analysis report, by product type, by source, by dosage form, by distribution channel: Global opportunity analysis and industry forecast, 2024-2034 https://www.alliedmarketresearch.com/sleep-aid-supplement-market-A323764#:~:text=The%20global%20sleep%20aid%20supplement,5.1%25%20from%202024%20to%202034.
8: Johns Hopkins Medicine. (n.d.) Melatonin for Sleep – Does it Work? https://www.hopkinsmedicine.org/health/wellness-and-prevention/melatonin-for-sleep-does-it-work
9: Wang, Joseph et. al. (July 1, 2013) Electrochemical Tattoo Biosensors for Real-Time Noninvasive Lactate Monitoring in Human Perspiration. Analytical Chemistry Volume 85 Issue 14. https://pubs.acs.org/doi/10.1021/ac401573r
10: Cleveland Clinic. (n.d.) Electrolytes. https://my.clevelandclinic.org/health/diagnostics/21790-electrolytes
11: Precedence Research. (2024). Electrolyte drinks market size to reach USD 74.19 billion by 2034. Retrieved from https://www.precedenceresearch.com/electrolyte-drinks-market
12: PwC. (2024). From molecules to milestones: Reinventing for the future of weight loss drugs. https://www.pwc.com/us/en/services/consulting/business-model-reinvention/glp-1-trends-and-impact-on-business-models.html
13: Johns Hopkins Medicine. (n.d.). Facts about sugar and sugar substitutes. https://www.hopkinsmedicine.org/health/wellness-and-prevention/facts-about-sugar-and-sugar-substitutes
