Vitafoods Europe 2025 – KHNI Lunch & Learn: From Nutraceutical Niche to Mass Market

Kerry Health and Nutrition Institute sponsored a sold out ‘Lunch and Learn’ session at Vitafoods Europe, held in Barcelona on 21st May 2025. Key experts from the industry discussed the journey of bringing nutraceuticals from niche positionings to the mass market.

The opening keynote was impactfully delivered by Teddy Levenfiche, Co-Founder of the UK’s fastest growing energy drink, PerfectTed. Teddy urged those who are building a nutrition centric brand to start small and go deep into a market niche, before trying to expand the solution to the masses. For PerfectTed, this meant making matcha more accessible and appealing with positive energy, both within the canned drink, and through their product positioning. Key milestones for the £300million brand were also shared with the audience, from supermarket listings, to securing funding on the TV show ‘Dragons Den’, explaining the power of community, clarity and conviction when developing the product. PerfectTed is now the largest matcha brand in Europe, setting a clear example of moving from niche to mass market and this set the tone for the KHNI sponsored Lunch & Learn.

The 3 hour session then switched to a panel of subject matter experts, each sharing their unique experiences in the nutraceuticals industry bringing a diverse viewpoint to the day.

Panelists:

• • David Lemley, President & Head of Strategy (Retail Voodoo). Expertise: Brand strategy, storytelling, launches/failures, consumer-brand alignment
  • Johan Hellmor, Commercial lead, Supplements (Kerry). Expertise: Supplements, regulatory strategy, European market experience and expansion, scientific substantiation, product development
  • Riccardo Accolla, Director of Innovation (Thimus). Expertise: Sensory neuroscience, product testing, consumer emotional response, adoption psychology•
  • Rick Miller, Associate Director, Specialised Nutrition (Mintel). Expertise: Consumer data, trend forecasting, scientific nutrition & dietary knowledge, market entry strategy
  • Lucy Whittaker, Senior Content Producer (Vitafoods Europe)

Nutraceutical market trends & consumer demand

Rick Miller from Mintel opened the session with market trends leading to consumer demand for functional food and supplements, highlighting that nearly 70% of consumers are actively seeking function-specific nutrition. Regarding category specific growth, Rick pointed out that functional drinks, yoghurt and cereals are saturated in the functional foods market, whereas spreads, confectionary and daily staples e.g. baked goods are showing potential as breakout categories for innovation with functional ingredients. Trends with huge opportunity for growth are Hormonal health, Edible Beauty, Personalised Nutrition to tailor supplementation.

Furthermore only 1 in 5 niche products that try to scale to the mainstream achieve measurable market share. Common blind spots in these scaling attempts include poor pricing strategy, lack of efficacy, and under innovation. Brands sometimes respond too literally to trends and don’t creatively customize to their product to their consumer. Transparency and authenticity of products and brands are needed to connect with consumer.

Brand strategy & communications

Next David Lemley, President & Head of Strategy (Retail Voodoo), discussed the power of brand strategy and communications. David has helped build breakthrough brands like KIND, Essentia, and Starbucks. According to Gartner, 45% of new innovations fail due to poor market fit. What truly separates successful brand breakthroughs from those that flop is building a brand that resonates with consumers, choosing a consumer category and going narrow and deep with that message.

Mission-led messaging is in high demand but is often overplayed. To authentically build brand stories around values like sustainability or clean label, without greenwashing or virtue signalling, it’s about people, ensuring the employees and buyers believe in the purpose before the consumer does. This was demonstrated through the example shared of Perfect Ted at the start of the session.

Product development & scientific validation

The biggest challenge facing the industry in the next five years was identified as balancing the speed of innovation with scientific and regulatory integrity. Johan Hellmor from Kerry delved into the importance of regulatory and scientific validation of nutraceutical products. Kerry’s research shows 64% of consumers trust products with clinically validated ingredients. Clinical validation isn’t optional anymore, it’s the price of entry for long-term success. It should be viewed as both a credibility driver and an innovation enabler. Building a framework where R&D, regulatory, and commercial are aligned from day one, allows creation of novel formats and ingredient combinations without falling into the ‘post-launch substantiation scramble’ that derails many innovations.

Regarding the EU regulatory landscape, Europe is one of the most challenging markets for health claims. For companies to navigate the fine line between science-backed claims and regulatory approval when developing new products it is recommended to involve regulatory experts in R&D early on in the process, not as gatekeepers, but co-creators. Cross-functional teams are critical. R&D, legal, and marketing must work hand-in-hand from idea to launch to avoid costly reformulations or retractions. In Europe, scepticism around functional claims is higher, therefore building consumer trust through education and proof of efficacy is vital. The discussion highlighted the novel food and ingredients assessment processes from EFSA and the limited resources that could potentially slow down approval times and limit growth.

With regards to the trends that are currently shaping innovation pipelines, the convergence of personalization, cognitive wellness, and proactive aging, are areas with potential to go from niche to mainstream. Taste and texture are also scaling fast as differentiators in supplements. If a product doesn’t taste great, it won’t become mainstream, no matter how effective it is. Taste masking and flavour innovation is one example of how we scale sensory science alongside efficacy.

Sensory science in product development

Riccardo Accolla, Director of Innovation (Thimus), discussed how he uses neuroscience and biometric testing to decode how consumers emotionally and physically respond to products. According to Innova, 70% of consumers are more likely to repurchase products that deliver a memorable sensory experience. Neuroscience is intrinsically involved in product consumption and purchase. Sensory cues e.g. taste, smell, and emotional memory define whether a consumer likes the product, driving consumption and repurchase. Increasing quality of consumer neuroscience insights reduces the product failure rate, reducing time to market.

Learning from failure, scaling & continuous innovation

What are some of the most common causes of failure brands face when moving from niche to mass market?

• • Underfunding and moving too quickly without understanding the consumer. Due diligence is more important than speed to market.
  • We can often over rely on trend analysis rather than authenticity and connection to consumers.
  • One common cause of failure is the lack of regulatory foresight. Brands often overlook the importance of early regulatory consultation, leading to delays and additional costs. Integrate regulatory strategy from the outset to avoid these pitfalls. Importance of cross-functional “go/no-go” checkpoints early in product development.
  • Compliance doesn’t have to be a constraint; it can be a catalyst. When science and storytelling are in sync, it unlocks real innovation.
  • Consumer education is always key here and having consumer facing websites showcasing the strength of the science is a key advantage.

Future Nutraceutical Market Outlook

• • The session wrapped up exploring the future market outlook with advice for brands aiming to scale from niche to mass market in the next 3–5 years.
  • Invest in clinical validation early on. This not only builds consumer trust but also strengthens your market position. Evidence, transparency, and taste matter more than ever.
  • One emerging trend or consumer segment that’s underhyped but ripe for breakout, is the integration of nutraceuticals with digital health tools, offering personalized nutrition solutions.
  • The greatest challenge facing the industry in next 5 years is balancing innovation speed with scientific and regulatory integrity, especially as AI, synthetic biology, and personalized nutrition explode.
  • “In 2030, consumers will demand nutraceuticals that…”
    … are not only effective but also personalized to their unique health profiles, are clinically proven, taste amazing, and align with their personal values.

The ‘Lunch and Learn’ session at Vitafoods Europe provided a wealth of insights and strategic advice for industry professionals. By addressing common pitfalls, exploring future market opportunities, identifying upcoming challenges, and envisioning the future of nutraceuticals, the session offered a comprehensive guide for brands looking to scale from niche to mass market. The expert speakers’ insights underscored the importance of authenticity, regulatory foresight, innovation, and consumer education in achieving long-term success in the nutraceutical industry.