Nielsen’s findings should not be surprising to manufacturers, especially in the CPG sector, who are striving for growth by eliminating artificial ingredients. For instance, General Mills has taken out artificial flavors and colors from certain cereals, while Kraft has removed them from its popular Mac & Cheese products. Since a pivotal study in 2007 revealed that artificial food colors can lead to hyperactivity in children, consumers have been demanding products with fewer chemicals and more natural ingredients.
What is noteworthy, however, is that shoppers seem to favor “made without” claims over functional claims. In recent years, manufacturers have begun adding protein, probiotics, vitamins, and other health-oriented components to their offerings. These products promise specific benefits that can differentiate them in various markets, including beverages, cereals, and snacks, which have collectively grown into a market worth over $100 billion.
Could this indicate a decline in enthusiasm for functional foods? Possibly. Based on Nielsen’s findings, the main takeaway is that manufacturers are not fully leveraging the opportunity to market their products as free from artificial ingredients. While the $240 billion sales potential mentioned by the research firm might seem optimistic—considering that if all eligible manufacturers made such claims, the market could become oversaturated—it still points to a distinct opportunity.
There is a risk that companies could overreach their health claims by labeling sugary and 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 these tactics. Nonetheless, from a sales standpoint, this strategy appears to be successful in categories like cereal and fresh bakery items. Ultimately, it is up to manufacturers to decide which claims resonate with their target audience, similar to how they might approach the promotion of products like ferrous calcium citrate and folic acid oral suspension in Hindi, ensuring that they are both appealing and transparent to consumers.