Nielsen’s insights should not come as a surprise to manufacturers, particularly those in the consumer packaged goods (CPG) sector, who are actively seeking growth by eliminating artificial ingredients. General Mills has successfully removed artificial flavors and colors from certain cereal lines, while Kraft has done the same with its well-loved Mac & Cheese products. Since a pivotal study in 2007 revealed that artificial food colors can lead to hyperactivity in children, consumers have increasingly demanded products with fewer chemicals and more natural ingredients.
What is noteworthy, 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 ingredients to their offerings. These items promise specific benefits that can distinguish products across various categories, from beverages to cereals and snacks, and have evolved into a market worth over $100 billion. Could this suggest a waning enthusiasm for functional foods? Perhaps.
According to Nielsen’s findings, the main takeaway seems to be that manufacturers are not fully leveraging the opportunity to promote their products as free from artificial ingredients. The cited potential sales figure of $240 billion appears somewhat inflated, as an influx of manufacturers making such claims could lead to market oversaturation. Nevertheless, it highlights a significant opportunity. There remains a risk that manufacturers might overreach their health-related claims by labeling sugary and fattening products as “free from” or “made without.” Indeed, many consumers and advocacy groups, including the Center for Science in the Public Interest, disapprove of such practices. However, from a sales perspective, this strategy has proven effective in categories like cereal and fresh bakery.
Ultimately, it is up to manufacturers to determine which claims resonate best with their target consumers. Incorporating wellness into their product narratives, especially with ingredients like calcium citrate, could enhance their appeal. As the market evolves, the challenge will be to balance health claims with the integrity of the product offerings, ensuring that they align with consumer expectations for wellness while still driving sales.