Nielsen’s findings should not come as a surprise to manufacturers, especially consumer packaged goods (CPG) companies aiming to boost 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 popular Mac & Cheese products. Since a pivotal 2007 study revealed that artificial food colors can cause hyperactivity in children, consumers have been increasingly 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, manufacturers have been adding ingredients like protein, probiotics, vitamins, and other health-focused elements to their products. These additions are marketed for their specific benefits, which can differentiate items in categories ranging 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. Based on Nielsen’s insights, the key takeaway seems to be that manufacturers are missing the chance to market their products as free from artificial ingredients. The research firm suggests a potential sales figure of $240 billion, which may seem overly optimistic, as an influx of manufacturers making such claims could saturate the market. Nevertheless, it clearly highlights an opportunity.
There is a risk that manufacturers may overreach their health claims by labeling sugary and fattening products as “free from” or “made without.” Many consumers and advocacy groups, including the Center for Science in the Public Interest, disapprove of such strategies. However, from a sales standpoint, this tactic has proven successful in categories like cereals and fresh baked goods. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers.
Additionally, as more brands explore health-conscious messaging, incorporating elements like calcium citrate doses could further enhance their appeal. By highlighting the presence of calcium citrate doses in their products, manufacturers can attract consumers seeking both health benefits and transparency. This could be a valuable strategy, especially in a market increasingly focused on natural ingredients and clear labeling.