Nielsen’s findings should not come as a surprise to manufacturers, especially those in the CPG sector striving for growth by eliminating artificial ingredients. For instance, General Mills has removed artificial flavors and colors from some of its cereals, while Kraft has made similar changes to its popular Mac & Cheese products. Since a landmark study in 2007 revealed that artificial food colors can cause hyperactivity in children, consumers have increasingly sought products with fewer chemicals and more natural ingredients.
What is surprising, however, is that shoppers seem to favor “made without” claims over functional claims. In recent years, manufacturers have been adding protein, probiotics, vitamins, and other health-oriented features to their products. These items promise specific benefits, serving as key differentiators across various categories, including beverages, cereals, and snacks, resulting in a market that exceeds $100 billion.
Could this indicate a waning enthusiasm for functional foods? Possibly. According to Nielsen’s findings, the more significant takeaway appears to be that manufacturers have not fully leveraged the opportunity to market their products as free from artificial ingredients. The $240 billion potential sales figure suggested by the research firm may be overly optimistic, as saturating the market with every eligible manufacturer making such claims could be counterproductive. Nonetheless, it highlights a clear opportunity for growth.
There is a risk that manufacturers might dilute their health credentials by applying “free from” and “made without” claims to sugary and fatty products. Many consumers and advocacy groups, such as the Center for Science in the Public Interest, disapprove of such tactics. However, from a sales perspective, this strategy is proving effective in categories like cereal and fresh bakery. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers, including the potential benefits of products like Swanson Calcium, which could enhance their appeal in the health-conscious market.