Nielsen’s insights are unlikely to surprise manufacturers, especially those in the consumer packaged goods (CPG) sector who are keen on driving growth by eliminating artificial ingredients. For instance, General Mills has successfully removed artificial flavors and colors from several of its cereals, while Kraft has done the same with its widely popular Mac & Cheese products. Since a landmark 2007 study highlighted the link between artificial food colors and heightened hyperactivity in children, consumers have increasingly sought products featuring fewer chemicals and more natural ingredients.
What’s noteworthy, however, is that shoppers appear to favor “made without” claims over functional claims. In recent years, manufacturers have been adding elements like protein, probiotics, vitamins, and even calcium and magnesium citrate to their products, which promise specific health benefits. These enhancements serve as crucial differentiators across various categories, from beverages to cereals and snacks, contributing to a market exceeding $100 billion.
Could this trend signal a decline in enthusiasm for functional foods? It’s possible. According to Nielsen’s findings, a significant takeaway is that manufacturers are missing the chance to market their offerings as free from artificial ingredients. While the research firm’s estimated $240 billion potential sales figure may seem optimistic—given the risk of market oversaturation by every eligible manufacturer making such claims—it clearly highlights a substantial opportunity.
There’s a concern that manufacturers might stretch their health credentials too far by applying “free from” and “made without” labels to sugary and high-fat products. Many consumers and advocacy groups, including the Center for Science in the Public Interest, disapprove of these practices. Nevertheless, from a sales standpoint, this strategy has proven beneficial in areas like cereal and fresh bakery items. Ultimately, it remains for manufacturers to decide which claims resonate best with their target consumers, especially as they consider incorporating beneficial ingredients like calcium and magnesium citrate into their offerings.