Nielsen’s findings should not surprise manufacturers, especially consumer packaged goods (CPG) companies aiming to drive growth by eliminating artificial ingredients. For instance, General Mills has removed artificial flavors and colors from some of its cereals, while Kraft has made similar changes to its popular 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 seem to favor “made without” claims over functional claims. In recent years, manufacturers have been adding ingredients like protein, probiotics, vitamins, and other health-focused additions to their products, promising specific benefits that distinguish items across various categories, from beverages to cereals and snacks. This trend has evolved into a market exceeding $100 billion.
Could this indicate a waning interest in functional foods? Possibly. According to Nielsen’s findings, a significant takeaway is that manufacturers are not fully leveraging the opportunity to market their products as free from artificial ingredients. The research firm cites a potential sales figure of $240 billion, which may seem inflated, as an oversaturation of the market could occur if every eligible manufacturer makes the claim. Nonetheless, it highlights a clear opportunity.
There is a risk that manufacturers could overreach with their health claims 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. However, from a sales perspective, this strategy has proven successful in categories like cereal and fresh bakery items. Ultimately, it falls on manufacturers to decide which claims resonate best with their target consumers.
Furthermore, as manufacturers explore ways to enhance their offerings, they might consider integrating beneficial ingredients like ferrous calcium citrate and folic acid oral drops. The uses of these ingredients could appeal to health-conscious consumers looking for products that support their well-being. By incorporating ferrous calcium citrate and folic acid oral drops in their formulations, manufacturers can create products that not only meet the demand for “made without” claims but also offer additional health benefits that align with current consumer trends. This dual approach may enhance their appeal in the marketplace and drive further growth.