Companies that have responded to shifting consumer preferences by producing healthier, natural options – including food and cleaning supplies – have experienced growth and are well-positioned for increased demand as health and wellness continue to gain mainstream acceptance, says Fidelity Portfolio Manager Paul McElroy.
“Consumers are increasingly purchasing products that are natural, organically grown, or free of plastics and other volatile compounds and chemicals,” says McElroy, who co-manages Fidelity® Healthy Future Fund (FAPHX) with Allyson Ke. “Once driven by millennials and affluent consumers, this preference – supported by narrow price differentials – has expanded to older demographics and a broader range of income levels, signaling what I consider durable, mainstream acceptance.”
The thematic equity strategy, launched in 2022, is dedicated to investing in global health and wellness companies, particularly innovative health care businesses, as well as others that seek to improve health, well-being and sustainability.
A 2023 joint study by McKinsey & Company and NielsenIQ found that products with sustainability advantages saw a 28% increase in sales over five years – outpacing overall food and packaged food sales and underscoring strong, growing alignment with shifting consumer values. The study also forecast continued growth alongside consumer sentiment.
Learn More
Supporting this, separate research from the National Retail Federation shows that more U.S. consumers are actively seeking sustainability information when shopping.
McElroy notes that consumer behavior is only part of the story: “The increasing focus on health also is being reinforced by policy,” he explains, pointing to the U.S. Department of Health and Human Services’ Whole Person Health initiative to combat chronic disease and promote wellness.
Looking to capitalize on this opportunity, McElroy and Ke have positioned the fund in companies they believe are best positioned to benefit from health restoration and disease prevention, including U.S.-based Sprouts Farmers Market (SFM) and SharkNinja (SN).
Sprouts caters to consumers seeking fresh, minimally processed options and made-from-scratch meals prepared at home. SharkNinja is expanding its line of kitchen appliances and home gadgets to support customers on their health journeys and in home cooking.
“For us, this is about harnessing the convergence of growth, consumer values and regulatory tailwinds,” McElroy says. “Sustainability is no longer a niche. Rather, it’s become a mainstream driver of profitability and resilience as more consumers seek to improve their health amid greater access to information. Our goal is to capture this opportunity for the benefit of the fund’s shareholders.”
For specific fund information, including full holdings, please click on the fund trading symbol above. Securities mentioned were fund investments as of April 30, 2026.
Paul McElroy is an Environmental, Social, and Governance (ESG) analyst in the Equity division at Fidelity Investments.
In this this role, Mr. McElroy is responsible for providing ESG research coverage for the consumer staples and discretionary sectors and works closely with portfolio managers and analysts to integrate ESG investment strategies and proprietary research signals into Fidelity's investment process. In addition, he serves as co-manager of the Fidelity Healthy Future Fund.
Prior to assuming his current responsibilities in 2018, Mr. McElroy was an internal consultant focused on process improvement and operational efficiency within Fidelity's investment operations teams and held a role as a business analyst on the Fixed Income division's money market trading desks recommending new issuances for taxable and tax-exempt funds. He has been in the financial industry since joining Fidelity in 2006.
Mr. McElroy earned his bachelor of science degree in finance from Bentley University and his master of business administration degree with a concentration in finance from the D'Amore-McKim Graduate School of Business at Northeastern University.