Nielsen’s findings are unlikely to surprise manufacturers, especially those in the consumer packaged goods (CPG) sector, who are aiming to drive growth by eliminating artificial ingredients. For instance, General Mills has removed artificial flavors and colors from select cereals, while Kraft has made similar changes to its popular Mac & Cheese products. Since a pivotal 2007 study highlighted that artificial food colors can contribute to hyperactivity in children, consumers have increasingly demanded 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 been adding protein, probiotics, vitamins, and other health-oriented ingredients to their products, promising specific benefits that differentiate offerings across categories such as beverages, cereals, and snacks. This market has expanded into a $100 billion industry. Could this indicate a waning interest in functional foods? Possibly. However, the main insight from Nielsen’s research suggests that manufacturers are missing out on the chance to promote their products as free from artificial ingredients.
The projected $240 billion in potential sales mentioned by the research firm might seem overly optimistic, as saturating the market with this claim could dilute its impact. Nevertheless, it highlights a clear opportunity. There is a risk that manufacturers may stretch their health claims too far by labeling sugary and fatty products as “free from” or “made without,” a tactic that many consumers and advocacy groups, such as the Center for Science in the Public Interest, criticize. Nevertheless, this strategy has proven successful 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, incorporating ingredients like calcium citrate and vitamin D can enhance the nutritional profile of products, making them more appealing to health-conscious shoppers. By leveraging these ingredients effectively, brands can create a compelling narrative around their offerings and tap into the growing demand for healthier, more natural products.