Nestlé, the world’s largest food company, has pledged to sell more nutritious products by 2030, aiming to enhance the healthiness of its product range and transform its marketing strategies for some of its offerings.
The company, known for brands like Lean Cuisine and Nescafé, has set a goal to increase the sales of healthier items from 20 billion Swiss francs to 25 billion Swiss francs (approximately $21.8 billion to $27.3 billion) by the end of the decade. This represents a 50% growth compared to its 2022 sales.
Amid consumer and watchdog group pressure to reduce salt, sugar, saturated fat, and artificial ingredients in their products, food and beverage companies worldwide are seeking ways to improve the nutritional content of their offerings.
Nestlé has been notable for its transparency in efforts to boost sales and promote a portfolio with healthier options. In March, Nestlé reported that 37% of its net sales, excluding pet care and specialized nutrition, came from products classified as “healthy” according to the Health Star Rating system. Additionally, 43% of its net sales were from products meant for occasional consumption or needing nutritional improvements.
To achieve its 2030 target, Nestlé plans to invest significantly in renovating existing products and driving innovation. The company will also expand opportunities for micronutrient fortification, enhance affordable options, and grow its portfolio of plant-based ingredient products and recipes.
In a bid to assist consumers in making better choices, Nestlé will adopt more responsible marketing of indulgent products. For confectionery and ice cream portions targeted at children, the company will impose a limit of 110 kilocalories.
These changes will be gradually rolled out over the next three years, starting in the UK in the spring of the following year. This builds upon Nestlé’s earlier decision to voluntarily restrict its marketing to children under 16, a measure initiated in July.
Many food and beverage companies have faced criticism for not doing enough to promote healthier products. A 2022 study by the Access to Nutrition Initiative revealed that about 70% of all food and beverages are considered “less healthy,” and no major consumer packaged goods (CPG) company derives a majority of its sales from “healthier” products.
Earlier this year, over two dozen institutional investors urged Nestlé to set a target for increasing the proportion of sales derived from better-for-you products, citing oversaturation of the market with products detrimental to public health and posing “systemic risks to investor returns.”
While indulgence remains a part of consumer behaviour, there is a growing trend among shoppers to prioritize healthier eating. Nestlé and other food companies are compelled to enhance the nutritional quality of their products or risk losing market share to those that have invested in such improvements.
In recent years, Nestlé has made reducing sugar content a priority. Three years ago, Nestlé discontinued its Milkybar Wowsomes lower-sugar chocolate bar in the UK and Ireland due to poor sales. However, this summer, the company introduced a “versatile and cost-effective” sugar reduction technology that can be applied to various product categories, using an enzymatic process to reduce intrinsic sugar in ingredients like malt, milk, and fruit juices by up to 30% with minimal impact on taste and texture.