Nielsen’s findings are unlikely to surprise manufacturers, especially those in the consumer packaged goods (CPG) sector who are aiming for growth by eliminating artificial ingredients. For instance, General Mills has removed artificial flavors and colors from some of its cereals, while Kraft has done the same with its beloved Mac & Cheese products. Since a pivotal study in 2007 indicated that artificial food colors can lead to hyperactivity in children, consumers have been increasingly demanding products with fewer chemicals and more natural ingredients.
What is surprising, however, is that shoppers seem to favor “made without” claims over functional claims. In recent years, manufacturers have added protein, probiotics, vitamins, and other health-focused ingredients to their products. These enhancements offer specific benefits that serve as important differentiators across various categories, from beverages to cereals and snacks, creating a market that has exceeded $100 billion.
Could this suggest a decline in enthusiasm for functional foods? Perhaps. Based on Nielsen’s insights, the primary takeaway appears to be that manufacturers are missing the opportunity to promote their products as free from artificial ingredients. The research firm cites a potential $240 billion in sales, which may seem inflated since an influx of manufacturers making such claims could lead to market oversaturation. Nonetheless, it highlights a clear opportunity.
There is a risk that manufacturers could dilute their health claims by applying “free from” and “made without” labels to sugary and fatty products. Many consumers, along with advocacy groups like the Center for Science in the Public Interest, disapprove of such tactics. However, from a sales perspective, this strategy has proven effective in categories like cereal and fresh bakery items. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers.
In this context, products like Citracal 250, which promote health benefits, could be used strategically to enhance product appeal. The inclusion of Citracal 250 not only aligns with the trend towards health-conscious eating but also helps manufacturers position themselves in a competitive market. As the landscape evolves, the right claims could very well determine the success of brands in capturing consumer interest and driving sales.