Exploring Next-Generation Functional Foods – Daymon Retail Insights

By Editorial
Share this article
Exploring Next-Generation Functional Foods – Daymon Retail Insights

The functional foods segment offers some stellar examples of how private brands can offer differentiation, according to Daymon.

During periods of instability, retailers can utilise private brands as a means to not just fulfil immediate customer requirements, but to cultivate fresh consumer habits that can be sustained into the future.

For every challenge, there’s an opportunity, and with this in mind, private brands should think strategically, concentrating on changing customer expectations in order to redefine their offers accordingly.

As shoppers re-evaluate their brand preferences, retailers are expanding their offerings to include private brands that meet their customers’ lifestyle needs, such as plant-based, functional, and more sustainable products.

In recent editions of its Innovation Report, Daymon has followed several industry trends that are gaining traction, using its expertise to explore how private brands are capitalising on these concepts and winning favour with shoppers. In this month’s Daymon Retail Insights, we look at some of the trends taking place in the functional foods segment.


Mushroom Snacks

Mushrooms are a popular choice for those seeking to consume more nutritious products, with the health benefits of shiitake and reishi mushrooms contributing to this trend. With this in mind, mushroom snacks have seen growth in Asia in recent years, offering a more natural alternative to traditional fare.

This trend is now extending to other markets, with US-based Trader Joe’s recently introducing Crispy Crunchy Champignon Mushroom Snacks (pictured), sourced from Pennsylvania, to its offering.

Sourdough Slices

Sourdough bread – known for its healthy-gut benefits and lower gluten composition – has been a phenomenon in recent years, as consumers seek healthier options from the bakery segment.

Capitalising on this trend, several retailers have launched private-brand sourdough bread in a sliced format, offering customers the convenience of traditional bread with the added benefits of sourdough.


Activated-Charcoal Drinks

With close to a quarter of consumers believing that charcoal can have a positive effect on their health, food and beverage manufacturers are increasingly exploring ways to incorporate this ingredient into products.

Activated charcoal, created by applying intense heat to organic materials such as bamboo and coconut husk, is known for its detoxification and digestive-aid properties. When combined with cold-pressed fruits, such as in the case of the Hacendado Carbón/Carvão shots from Spanish retailer Mercadona, the charcoal triggers the senses and provides additional health benefits to consumers.

Functional Iced Tea

The trend of adding functional benefits to food and drinks has gained traction in recent years, and the iced-tea category is no exception. With the addition of vitamins and minerals, the category can be positioned as a functional drink with added health-and-wellness characteristics.

In 2020, Jumbo rolled out a range of iced teas promising specific benefits: Good Energy (pomegranate and cranberry flavour), Feel Immune (with mango and jasmine), and Inner Beauty (with raspberry, mint and açai).


As new trends evolve, products and ideas that have the potential for success are being embraced by private-brand retailers and their manufacturing partners, offering a point of difference that is aligned with consumers’ constantly changing needs.

To learn more about how Daymon can help you, contact [email protected].

© 2023 European Supermarket Magazine – your source for the latest private-label news. Sponsored content. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.