Nielsen’s findings should not surprise manufacturers, especially those in the CPG sector seeking growth by eliminating artificial ingredients. General Mills has already removed artificial flavors and colors from certain cereals, and Kraft has done the same with its beloved Mac & Cheese products. Since a pivotal 2007 study linked artificial food colors to increased hyperactivity in children, consumers have been demanding products with fewer chemicals and more natural ingredients.
What is unexpected, however, is that shoppers seem to favor “made without” claims over functional claims. In recent years, manufacturers have introduced protein, probiotics, vitamins, and other health-oriented enhancements into their products. These additions promise specific benefits that can differentiate offerings across various categories, from beverages to snacks, creating a market exceeding $100 billion.
Could this indicate a waning enthusiasm for functional foods? Perhaps. Based on Nielsen’s findings, the significant insight appears to be that manufacturers are missing the chance to promote their products as free from artificial ingredients. The estimated $240 billion sales potential mentioned by the research firm may seem inflated, as too many manufacturers making such claims could lead to market saturation. Nevertheless, it clearly highlights an opportunity.
There is a risk that companies 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, criticize these practices. However, from a sales standpoint, this strategy has proven effective in categories like cereal and fresh bakery items.
Ultimately, it’s up to manufacturers to decide which claims resonate best with their target consumers. For instance, if they incorporate “easy to swallow calcium citrate” into their offerings and promote these benefits, they may attract health-conscious buyers looking for convenient solutions. In this evolving landscape, the ability to balance authentic health claims with appealing product features will be crucial for success.