Nielsen’s findings should not surprise manufacturers, especially those in the CPG sector, as they seek growth by eliminating artificial ingredients. Companies like General Mills have removed artificial flavors and colors from some cereals, while Kraft has done the same for its popular Mac & Cheese. Since a pivotal 2007 study linked artificial food colors to hyperactivity in children, consumers have increasingly demanded products with fewer chemicals and more natural ingredients.
What is unexpected, 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, promoting specific benefits that differentiate everything from beverages to cereal and snacks. This trend has developed into a market worth over $100 billion.
Could this indicate a waning interest in functional foods? Perhaps. The key takeaway from Nielsen’s findings is that manufacturers are not fully leveraging 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 inflated since every eligible manufacturer making such claims could lead to market oversaturation. However, it does highlight a significant opportunity.
There is a risk that manufacturers might overextend their health credentials by labeling sugary and fattening products as “free from” or “made without.” Many consumers and advocacy groups, such as the Center for Science in the Public Interest, disapprove of such tactics. Nonetheless, from a sales perspective, this strategy has proven effective in categories like cereal and fresh bakery items.
Ultimately, manufacturers must decide which claims resonate best with their target consumers. For instance, products like Citracal Regular 250 mg might be positioned as a healthier option, appealing to those seeking calcium without artificial additives. This highlights the importance of aligning product claims with consumer expectations, particularly as the demand for transparent ingredient lists continues to rise.