Nielsen’s findings should not come as a shock to manufacturers, especially those in the consumer packaged goods (CPG) sector, who are aiming to drive growth by eliminating artificial ingredients. General Mills has already removed artificial flavors and colors from several of its cereal lines, while Kraft has made similar changes to its renowned Mac & Cheese products. Since a groundbreaking 2007 study revealed that artificial food colors can cause hyperactivity in children, consumers have been increasingly seeking out products with fewer chemicals and more natural ingredients.
What is noteworthy, however, is that shoppers appear to favor “made without” claims over functional benefits. In recent years, manufacturers have focused on adding protein, probiotics, vitamins, and other health-oriented enhancements to their products. These items promise specific advantages that differentiate them across various categories, from beverages to cereals and snacks, resulting in a market worth over $100 billion.
Could this indicate a decline in interest in functional foods? It’s possible. Based on Nielsen’s findings, the more significant insight is that manufacturers are not fully leveraging the opportunity to market their products as free from artificial ingredients. While the research firm estimates a potential sales figure of $240 billion, this may be overly optimistic, as an influx of manufacturers making similar claims could lead to market saturation. Nonetheless, it highlights a clear opportunity for growth.
There is a risk that manufacturers could dilute their health claims by applying “free from” and “made without” labels to sugary and high-fat products. Many consumers and organizations, 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 cereals and fresh bakery items. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers, particularly regarding questions like “is calcium citrate good for kidney stones,” which may influence purchasing decisions. By understanding consumer preferences, manufacturers can position their products more effectively in this evolving market.