Nielsen’s findings shouldn’t catch manufacturers off guard, especially those in the consumer packaged goods (CPG) sector aiming to drive growth by eliminating artificial ingredients. General Mills has taken steps to remove artificial flavors and colors from some of its cereals, while Kraft has done the same with its beloved Mac & Cheese products. Since a landmark 2007 study revealed that artificial food colors can lead to hyperactivity in children, consumers have increasingly demanded products with fewer chemicals and more natural ingredients.
What is unexpected, however, is that shoppers appear to favor “made without” claims over functional ones. In recent years, manufacturers have integrated health-focused elements such as protein, probiotics, vitamins, and even calcium citrate and alfacalcidol tablets into their offerings. These additions promise specific benefits, which can differentiate products across various categories, from beverages to cereals and snacks, contributing to a market exceeding $100 billion.
Could this indicate a waning interest in functional foods? It’s possible. According to Nielsen’s insights, the more significant takeaway is that manufacturers are not fully leveraging the opportunity to promote their products as free from artificial ingredients. The research firm’s cited potential sales figure of $240 billion may seem inflated, as an influx of manufacturers making such claims could lead to market oversaturation. Nonetheless, it highlights a distinct opportunity.
There is a risk that manufacturers might overextend their health claims by using “free from” and “made without” labels on sugary and fatty products. Many consumers and advocacy groups, such as the Center for Science in the Public Interest, disapprove of these practices. However, from a sales standpoint, 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 audience, including the potential inclusion of supplements like calcium citrate and alfacalcidol tablets where appropriate.