Nielsen’s findings are likely not surprising for manufacturers, especially those in the consumer packaged goods (CPG) sector, who are aiming for growth by eliminating artificial ingredients. For instance, General Mills has taken out artificial flavors and colors from some of its cereals, while Kraft has removed them from its famous Mac & Cheese products. Since a pivotal 2007 study indicated that artificial food colors can lead to hyperactivity in children, consumers have increasingly demanded products with fewer chemicals and more natural elements.
What is unexpected, however, is that shoppers appear to favor “made without” claims over functional claims. In recent years, many manufacturers have added health-focused ingredients such as protein, probiotics, and vitamins to their products, which promise specific benefits that differentiate items ranging from beverages to snacks. This trend has evolved into a market exceeding $100 billion.
Could this indicate a decline in enthusiasm for functional foods? It’s possible. According to Nielsen’s findings, the more significant takeaway seems to be that manufacturers are missing the chance to promote their products as free from artificial ingredients. While the $240 billion sales potential suggested by the research firm may seem inflated—given that an influx of manufacturers making such claims could saturate the market—it nonetheless highlights a clear opportunity.
There is a risk that manufacturers might stretch their health claims too far by labeling sugary and fatty products as “free from” or “made without” certain ingredients. Many consumers and advocacy groups, such as the Center for Science in the Public Interest, are critical of such tactics. However, from a sales standpoint, this strategy has proven effective in categories like cereal and fresh bakery items.
Ultimately, it is up to manufacturers to decide which claims resonate best with their target audience. For instance, products fortified with calcium citrate and vitamin D, such as those containing 315 mcg of vitamin D and 6.25 mg of calcium citrate, can appeal to health-conscious consumers looking for nutritional benefits. Balancing these health claims with the desire for natural ingredients may provide a pathway for growth in a competitive market.