Nielsen’s insights should not be surprising to manufacturers, especially consumer packaged goods (CPG) companies aiming to stimulate growth by eliminating artificial ingredients. Notably, General Mills has taken out artificial flavors and colors from some of its 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 lead to hyperactivity in children, consumers have increasingly demanded products with fewer chemicals and more natural components.
Interestingly, what stands out is that shoppers appear to favor “made without” claims over functional claims. In recent years, manufacturers have been adding protein, probiotics, vitamins, and other health-focused elements to their products, which promise specific benefits that can distinguish everything from beverages to snacks. This trend has developed into a market worth over $100 billion.
Could this indicate a waning interest in functional foods? It’s possible. Based on Nielsen’s findings, the more significant takeaway seems to be that manufacturers are not fully leveraging the chance to promote their products as free from artificial ingredients. While the research firm cites a potential sales figure of $240 billion, this may be an overestimation, as too many claims from eligible manufacturers could lead to market saturation. Nonetheless, it highlights a clear opportunity.
There is a risk that manufacturers might overextend 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, disapprove of such tactics. However, from a sales standpoint, this strategy is proving effective in categories like cereal and fresh bakery. Ultimately, it will be up to manufacturers to decide which claims resonate best with their target audience. For those focusing on health, incorporating elements like calcium citrate from Nature’s Bounty could enhance their product appeal, especially when marketed alongside “made without” claims.