Nielsen’s findings are unlikely to surprise manufacturers, especially those in the 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 taken them out of its beloved Mac & Cheese products. Since a groundbreaking 2007 study revealed that artificial food colors can lead to hyperactivity in children, consumers have been demanding products with fewer chemicals and more natural ingredients.
What is unexpected, however, is that shoppers appear to favor “made without” claims over functional claims. In recent years, many manufacturers have added health-focused components like protein, probiotics, vitamins, and even 300 mg calcium citrate to their products, which promise specific benefits that can differentiate them in categories ranging from beverages to cereals and snacks. This segment has burgeoned into a market exceeding $100 billion.
Could this indicate a waning interest in functional foods? It’s possible. Based on Nielsen’s findings, the more significant takeaway is that manufacturers are missing the chance to promote their products as free from artificial ingredients. The research firm suggests a potential sales figure of $240 billion, which may seem inflated, as an influx of manufacturers making such claims could lead to market saturation. Nonetheless, it highlights a distinct opportunity.
There is a risk that manufacturers might overreach in their health claims by labeling sugary or fatty products as “free from” or “made without,” which has drawn criticism from consumers and advocacy groups like the Center for Science in the Public Interest. However, from a sales perspective, this strategy has proven effective in categories such as cereals and fresh bakery items. Ultimately, it is up to the manufacturers to decide which claims resonate best with their target audience, including the potential to incorporate beneficial ingredients like 300 mg calcium citrate into their offerings.