Functional Is No Longer Enough
FMCG and wellness brands jumped head first into functionality - but what happens when everyone swims in the same pond?
In Brief
Functional FMCG is drifting into commodity science. What once differentiated brands now barely gets them noticed.
SIGNAL — What’s happening?
Protein is everywhere. Gut health is everywhere.
“No sugar”, “added vitamins”, “immune support”, “energy”, “focus”, “hydration” — everywhere.
Walk down any grocery aisle and you’ll see the same functional promises repeated with minor variations. Different fonts. Same claims. Same logic.
What used to be innovation has become hygiene.
--
I remember running innovation projects ten years ago for FMCG brands across multiple categories when “functional” was the future. It caught on.
INSIGHT — What it really means
Function used to win choice.
Now it only earns entry.
The category has mistaken utility for relevance.
Consumers assume functionality. They don’t reward it.
They don’t choose brands because they work.
They choose brands because they mean something.
When every product promises better digestion, more protein, or cleaner energy, the decision moves elsewhere — to identity, emotion, aesthetics, and worldview.
This is where many FMCG brands get uncomfortable.
Because science feels safe.
Identity feels risky.
So they double down on ingredients, charts, and claims — and quietly slide into sameness.
THE DRIFT — Where brands are going wrong
Most functional brands are still asking the wrong question:
“How do we prove this works?”
The modern consumer is asking something else entirely:
“What does choosing this say about me? What does it make me?”
Functional brands that fail to answer that question don’t become disliked.
They become interchangeable.
And interchangeable brands don’t win preference.
They compete on price, promotions, and shelf position — until margins evaporate.
STRATEGIC SHIFT — Where the winners are moving
The brands pulling ahead aren’t abandoning function.
They’re reframing it.
They understand that:
Function is table stakes
Meaning is the differentiator
Identity is the accelerator
Winning brands translate function into identity outcomes, not technical benefits.
EXECUTION — What this looks like in practice
Product
Function stays — but is framed as a means, not the hero.
Packaging
Less clinical. More cultural. Visual cues signal who the product is for, not just what it contains.
Messaging
From claims → convictions. From features → worldview.
Culture & Content
Participation in identity spaces, not just nutritional conversations.
Experience
The brand feels like an ally in a lifestyle — not a supplement label with opinions.
THE BOTTOM LINE
Function gets you on shelf.
Meaning gets you chosen.
The future of FMCG isn’t won by brands with the best science.
It’s won by brands that translate science into self-image.
Brands that keep selling ingredients will fight for attention.
Brands that sell identity will earn preference.
That’s the difference between growth and drift.
Want to know if your brand is competing on relevance or just function?
Tobias
DM/Message “Score” and I’ll run your free Relevance Score™ – you’ll get valuable insights about what is shifting, and how it’s affecting your category and brand.
This really captures where most FMCG brands are stuck right now. The framing of "function as entry, meaning as differentiator" is spot on especailly when every brand is basically shouting the same functional claims at retail. Watched this play out in wellness drinks where ingredient decks became indistinguishable and the ones that actualy moved started leaning into lifestyle positioning instead of label science.