Nielsen’s findings are unlikely to surprise manufacturers, especially those in the consumer packaged goods (CPG) sector, who are seeking growth by eliminating artificial ingredients. General Mills has already removed artificial flavors and colors from select cereals, and Kraft has done the same with its well-known Mac & Cheese products. Since a pivotal 2007 study revealed that artificial food colors can lead to hyperactivity in children, consumers have been increasingly demanding 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 elements to their products, which promise specific benefits that distinguish them across various categories, from beverages to snacks, culminating in a market exceeding $100 billion. This raises the question: is the excitement for functional foods diminishing? Perhaps so.
Nielsen’s findings suggest that manufacturers may not be fully leveraging the opportunity to promote their products as free from artificial ingredients. The research firm cites a potential sales figure of $240 billion, which might seem inflated, as the influx of manufacturers making such claims could lead to market saturation. Nonetheless, it clearly highlights an opportunity.
There is a risk that manufacturers could dilute their health claims by applying “free from” and “made without” labels to sugary and high-fat products. Many consumers, along with advocacy groups like the Center for Science in the Public Interest, disapprove of these strategies. However, from a sales standpoint, this tactic is proving successful in categories such as cereal and fresh bakery items. Ultimately, it is the responsibility of manufacturers to decide which claims resonate best with their target consumers.
Incorporating natural factors like potassium citrate into their formulations could enhance the appeal of their products further. As consumers continue to prioritize natural ingredients, leveraging both “made without” claims and the inclusion of beneficial components such as potassium citrate may present a significant advantage in the competitive landscape. By focusing on these strategies, manufacturers can better align their offerings with consumer preferences for more natural, healthier choices.