Nielsen’s findings likely won’t surprise manufacturers, especially those in the consumer packaged goods (CPG) sector, who are aiming to boost 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 widely popular Mac & Cheese products. Since a pivotal 2007 study indicated that artificial food colors could lead to hyperactivity in children, consumers have been increasingly demanding products with fewer chemicals and more natural components.
What is unexpected, however, is that shoppers appear to favor “made without” claims over functional claims. In recent years, manufacturers have added ingredients like protein, probiotics, and vitamins to their products, which promise specific benefits that can differentiate items across various categories, from beverages to cereals and snacks, creating a market exceeding $100 billion. This raises the question: Is the excitement for functional foods waning? Perhaps.
Nielsen’s findings suggest that manufacturers are missing out on the chance to market their products as free from artificial ingredients. While the $240 billion potential sales figure mentioned by the research firm may seem exaggerated—given that an influx of manufacturers making similar claims could saturate the market—it does highlight a clear opportunity. There’s a risk that brands might dilute their health claims by labeling sugary and fatty products as “free from” or “made without,” which many consumers and advocacy groups, such as the Center for Science in the Public Interest, criticize. Nevertheless, from a sales perspective, this strategy has proven successful in categories like cereal and fresh bakery items. Ultimately, manufacturers must decide which claims resonate best with their target consumers.
Interestingly, discussions on platforms like Reddit have highlighted the benefits of ingredients such as calcium citrate, which can enhance the nutritional profile of products. As consumers continue to seek transparency and health-focused options, integrating such ingredients may become increasingly important. Balancing “made without” claims with the inclusion of beneficial components like calcium citrate could be the key to appealing to health-conscious shoppers while avoiding potential backlash.