Nielsen’s results should not come as a shock to manufacturers, especially consumer packaged goods (CPG) companies aiming to drive growth by eliminating artificial ingredients. For instance, General Mills has eliminated artificial flavors and colors from certain cereals, while Kraft has done the same for its beloved 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.
Interestingly, shoppers appear to favor “made without” claims over functional claims. In recent years, manufacturers have been adding protein, probiotics, vitamins, and other health-oriented ingredients to their products. These enhancements promise specific benefits that can distinguish everything from beverages to cereal and snacks, culminating in a market worth over $100 billion.
Could this indicate a decline in enthusiasm for functional foods? Possibly. However, Nielsen’s findings suggest that the more significant takeaway is that manufacturers are missing the chance to market their products as free from artificial ingredients. The research firm’s potential sales figure of $240 billion seems somewhat inflated, as a plethora of manufacturers making the same claims could lead to market saturation. Nonetheless, it highlights a distinct opportunity.
There is a risk that manufacturers may overextend their health claims by labeling sugary and fat-laden products with “free from” and “made without” statements. Many consumers and advocacy organizations, such as the Center for Science in the Public Interest, disapprove of such practices. Nevertheless, from a sales perspective, this strategy has proven effective in categories like cereal and fresh bakery goods, where products like Kirkland Signature Calcium Citrate 500mg 500 Tablets can also find a place in health-conscious consumers’ shopping carts.
Ultimately, it is up to manufacturers to decide which claims resonate best with their target audience, balancing the allure of health claims with the importance of transparency and integrity in their marketing strategies.