Better-for-you offerings: Reformulation, traceability and functional health trends

The F&B industry is under increasing pressure to deliver products that balance indulgence with health, convenience, and sustainability. “Better-for-you” offerings are at the center of this shift, as manufacturers reformulate to reduce sugar, salt, fat, and calories without compromising on taste or quality.

Suppliers are using functional ingredients, emulsifiers, stabilizers, proteins, and fibers that target consumer demands for issues like digestive health and weight management. Increasing supply chain transparency is also helping brands boost their clean label and sustainability credentials.

“People are looking for foods that not only taste good but also support their lifestyle goals, whether that’s reducing sugar and fat, cutting calories, or choosing products made with natural and responsibly sourced ingredients,” Peter Grundtvig Nielsen, global industry marketing manager at Palsgaard, tells Food Ingredients First. 

He explains that three interconnected consumer trends are shaping the demand for better-for-you products. “Health and wellness, sustainability, and transparency are the key drivers. At the same time, manufacturers are under pressure to deliver these benefits without compromising indulgence, convenience, or shelf life. That is where our plant-based emulsifiers and stabilizers play a role, helping balance functionality with consumer-driven health priorities.”

“Our approach is holistic; we combine functionality, sensory quality, and sustainability so manufacturers don’t have to compromise between health, indulgence, and responsible production,” Nielsen emphasizes.

Innova Market Insights data indicates that 78% of global consumers say eating healthy foods is “essential.” Data suggests that from July 2020 to June 2025, global F&B launches featuring health claims grew by 2%, particularly in the Bakery, Dairy, and Soft Drink categories. “No additives” was the top health claim, and hydration claims increased for NPD. Global growth in F&B launches with protein ingredients had a 4% year-over-year increase.

Reformulation without trade-offs

One of the main challenges manufacturers face is the classic trade-off: consumers want healthier profiles, but they are unwilling to accept changes in indulgence. “Our role is to bridge that gap through application expertise and ingredient innovation,” Nielsen explains.

Innova Market Insights data indicates that 78% of global consumers say eating healthy foods is “essential.”He highlights chocolate as a sector where the company’s solutions can make a measurable difference. “Our Palsgaard AMP 4455 emulsifier allows chocolate manufacturers to reduce cocoa butter content significantly. That not only means cutting costs, but also cutting calories and fat without altering taste or mouthfeel.”

Bakery and dairy are also central to reformulation efforts, he shares. “In cakes, our emulsifiers make it possible to reduce fat content and still achieve the same moist, indulgent crumb. And in ice cream, our stabilizer blends support the production of low-fat or low-sugar varieties that deliver the creamy texture consumers expect. These kinds of innovations show how we help manufacturers bring better-for-you products to market without trade-offs.”

Clean label expectations, commercial viability

Transparency around ingredients has become a decisive factor for consumers. “Palsgaard’s emulsifiers are all based on sustainable vegetable oils — primarily palm oil sourced from RSPO-certified (Roundtable on Sustainable Palm Oil) supply chains,” Nielsen explains. “Many of our blends are tailored to support label-friendly formulations, helping manufacturers replace synthetic additives and reduce the length of ingredient lists.”

He adds that the company invests heavily in R&D to ensure its solutions can perform in recipes with fewer additives. “We understand that brands need to meet rising consumer demand for naturalness and transparency. That is why we work closely with customers in our global application centers, tailoring solutions to align with both consumer expectations and technical requirements.”

“Another challenge is ensuring scalability and cost-effectiveness,” says Nielsen. “Ingredients like Palsgaard AMP 4455 are ideal because they support better-for-you credentials through reduced fat levels while also creating significant cost savings by cutting cocoa butter use. That makes healthier options commercially viable, which is critical in today’s market.”

Functional benefits and science-backed claims

The demand for better-for-you is not limited to calorie reduction. Consumers are increasingly looking for functional benefits linked to digestive health, weight management, and even cognitive performance.

“Beyond the established drivers of taste, price and all things natural, over half of global consumers now see low sugar, higher fiber and the provision of specific functional benefits as important to them when it comes to healthier snacks,” says Imen Ouerdiane, sales director EMEA at Beneo.

She highlights digestive health as a leading concern. “Approximately three out of four consumers worldwide believe that digestive health has an influence on their physical well-being, immune system, weight, and energy levels. That is why proven prebiotics, such as our chicory root fibers Orafti Inulin and Oligofructose, are so popular with consumers and producers alike.”

Ouerdiane notes that these ingredients allow for fiber enrichment, partial sugar replacement, and calorie reduction. “With its fat-mimicking properties, Orafti Inulin is a preferred solution for fat reduction and improving texture and mouthfeel. Meanwhile, Orafti Oligofructose offers high solubility and natural sweetness.”Global consumers are demanding sustainability and health credentials in snacks.

Smart carbohydrates and plant-based solutions

Weight management is also set to play a stronger role in product launches, particularly as prescription weight loss drugs fuel consumer focus on controlling blood sugar and metabolism. “Palatinose is unique in its ability to deliver a lower rise in blood glucose, while delivering full carbohydrate energy in a more balanced way,” says Ouerdiane.

She points out that Palatinose has been shown to stimulate the release of gut hormones such as GLP-1 and promote fat burning. “By supporting effective weight management strategies, Palatinose is a valuable tool for healthier formulations.”

Both Palsgaard and Beneo emphasize sustainability as a defining value. “Sustainability is another benefit, as many of our solutions allow manufacturers to reduce ingredients such as cocoa butter that are in short supply or have a high carbon cost,” says Nielsen.

At Beneo, plant-based solutions are being developed with a dual focus on nutrition and sustainability. “Almost one-in-three consumers globally identify as flexitarian, and four-in-five have already adopted, or are on their way to adopting, a meat-reduced lifestyle,” says Ouerdiane. “Our faba bean protein concentrate is a natural, clean label source of plant-based protein that can serve as an alternative to milk and egg.”

Beneo recently opened a new plant in Germany to process faba beans, following an investment of around €50 million (US$55 million). The facility operates with renewable energy and a zero-waste approach.

Gut and brain health

Both spokespeople see science-backed health claims becoming increasingly important. “With over one-in-three consumers already saying they always or often consider specific health-promoting ingredients when buying snacks, we can expect health claims to play an even greater role in the future,” notes Ouerdiane.

She points to emerging research on the gut-brain axis. “Scientific attention has turned to how the microbiota can become the target of nutritional and therapeutic strategies for improved brain health and well-being. This opens opportunities for prebiotics not only in digestive health but also in supporting mood and cognitive performance.”

Nielsen underscores that consumer expectations are pushing suppliers toward continuous innovation. “Our task is to make sure that health, indulgence, and sustainability can coexist in a single product. That is what better-for-you truly means.”