How the CPG Sector is Confronting Health Concerns

For leaders in the CPG sector, a big question in health today is this: why is the nation getting less and less healthy, despite knowing more about diet and lifestyle than ever before?

Since the 1970s, obesity has been rising steadily. We now have endless products, advice, and tools for healthier living. Yet the nation continues to get sicker.

This is what we call “The Health Paradox”.

Conventional wisdom says each of us must take responsibility for our health. That’s true, but and we also need help from the government, retailers, and manufacturers. And here lies the uncomfortable truth: the biggest profits are likely to come from processed products.

One of the most common questions from the consumer goods industry is: How will Ozempic and other weight-loss drugs affect food and drink sales and CPG innovation? 

Right now, there’s more money going into drugs and surgery than tackling the real issue: how and what people eat. Foods high in fat, salt, and sugar are cheap, available everywhere, and are consumed in excess. The excess consumption is a normal response by normal people in an abnormal food environment.

Self-regulation by manufacturers hasn’t worked. Governments have stepped in with measures such as the Soft Drinks Sugar Tax and HFSS legislation. Retailers argue they can self-police. However, history shows “marking your own homework” rarely works. The best way forward is a mix of legislation and self-governance.

For healthier products to succeed, CPG manufacturers face one major challenge: taste. This is a significant hurdle for product innovation. Remove fat, sugar, or salt, and something else must replace it. Consumers won’t compromise on flavour.

Launching healthier products (NPD) is hard for two reasons:

A clear example: Mondelez scrapped its 30% less sugar Dairy Milk bar after only four years. Yet the WHO has long urged people to cut sugar intake by half. The direction was right, but not enough time was given to help consumers adapt.

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From the shopper’s point of view:

From a trust perspective, two in five of UK 16-34s learn about healthy eating from wellness creators on social media vs 8% for 45+ adults.

People want brands and retailers to help them make better choices. But too often, the healthiest option is also the least profitable. For example, a week’s worth of jacket potatoes costs pennies. A branded “meal solution” costs 10–20 times more.

New products and diets appear constantly — keto, coconut, protein powders. Most are fads: short-lived, high-risk, sometimes high-reward, and often fleeting.

True trends are different. They are long-term, low-risk, and tied to deep societal shifts:

These aren’t short-lived crazes. They are predictable in their movement, impactful and impossible to ignore without predictable reward long long-term consequences.

The food industry cannot self-regulate itself. There are too many players and too many conflicting interests.

By combining legislation, innovation, and education, the food industry and policymakers can work together to reverse the health decline and build a healthier future.

Is your brand navigating The Health Paradox successfully?

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