Nielsen’s findings should not be surprising to manufacturers, especially those in the consumer packaged goods (CPG) sector, who are aiming for growth by eliminating artificial ingredients. For instance, General Mills has removed artificial flavors and colors from several of its cereals, while Kraft has done the same for its popular Mac & Cheese products. Since a pivotal 2007 study highlighted that artificial food colors can lead to hyperactivity in children, consumers have increasingly demanded products with fewer chemicals and more natural ingredients.
What is unexpected, however, is that shoppers appear to favor “made without” claims over functional claims. In recent years, manufacturers have been adding protein, probiotics, vitamins, and other health-oriented ingredients to their offerings. These items promise specific advantages that can set products apart in categories ranging from beverages to cereals and snacks, creating a market that has surpassed $100 billion.
Could this suggest that interest in functional foods is waning? Perhaps. According to Nielsen’s findings, the main takeaway seems to be that manufacturers are missing the chance to promote their products as free from artificial ingredients. While the projected $240 billion in potential sales from the research firm might seem overly optimistic—given that the market could become oversaturated with similar claims—it clearly indicates a significant opportunity.
However, there is a risk that manufacturers may stretch their health claims too far by labeling sugary or high-fat products as “free from” or “made without.” Many consumers and advocacy groups, such as the Center for Science in the Public Interest, disapprove of such tactics. Yet, from a sales perspective, this strategy has proven successful in categories like cereal and fresh bakery goods. In this context, manufacturers might also consider incorporating beneficial ingredients such as calcitriol, calcium citrate, and zinc sulfate to enhance their product offerings. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers, ensuring that they strike the right balance between healthfulness and market appeal.