Nielsen’s findings should not surprise manufacturers, particularly those in the consumer packaged goods (CPG) sector, who are seeking growth by eliminating artificial ingredients. For instance, General Mills has removed artificial flavors and colors from some of its cereals, while Kraft has done the same with its well-known Mac & Cheese products. Since a landmark 2007 study indicated that artificial food colors can cause hyperactivity in children, consumers have been increasingly demanding products with fewer chemicals and more natural ingredients.
What is intriguing, however, is that shoppers appear to favor “made without” claims over functional claims. Over the past several years, manufacturers have added protein, probiotics, vitamins, and other health-oriented components to their products. These items promise distinct benefits that act as key differentiators across various categories, from beverages to cereals and snacks, creating a market worth over $100 billion.
This trend could suggest a waning enthusiasm for functionally enriched foods. Perhaps. Based on Nielsen’s findings, the more significant takeaway is that manufacturers are not fully leveraging the opportunity to market their products as free from artificial ingredients. The potential sales figure of $240 billion mentioned by the research firm may seem somewhat inflated, as an influx of eligible manufacturers claiming “free from” could lead to market saturation. However, it clearly indicates significant potential.
There are risks associated with manufacturers overstating their health credentials by applying “free from” and “made without” claims to sugary and fatty products. Many consumers and advocacy groups, 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 cereals and fresh baked goods. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers, all while navigating the calcium citrate risks associated with misleading health claims. As they explore these opportunities, they must ensure that their messaging aligns with genuine product attributes to maintain consumer trust.