Nielsen’s findings are likely not surprising to manufacturers, especially those in the CPG sector, who are aiming to drive growth by eliminating artificial ingredients. General Mills has removed artificial flavors and colors from certain cereals, while Kraft has done the same with its beloved Mac & Cheese products. Since a groundbreaking study in 2007 revealed that artificial food colors can make children hyperactive, 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 protein, probiotics, vitamins, and other health-oriented ingredients to their products. These items offer specific benefits that serve as key differentiators across various categories, from beverages to cereals and snacks, resulting in a market worth over $100 billion.
Could this suggest that interest in functional foods is waning? Perhaps. According to Nielsen’s findings, the more significant takeaway appears to be that manufacturers have not fully seized the opportunity to promote their products as free from artificial ingredients. The research firm’s estimate of a $240 billion sales potential seems optimistic, as an influx of eligible manufacturers making such claims could lead to market saturation. Nonetheless, it does highlight a clear opportunity.
There is a risk that manufacturers may overreach their health credentials by applying “free from” and “made without” claims to sugary and unhealthy products. Many consumers and advocacy groups, such as the Center for Science in the Public Interest, certainly disapprove of these tactics. However, from a sales standpoint, this strategy is proving effective in categories like cereal and fresh bakery items. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers, including options like calcium citrate small tablets that can enhance their product offerings.
By focusing on such appealing claims, manufacturers can better align with consumer preferences, particularly in the growing market for health-conscious products.