Nielsen’s findings are not surprising for manufacturers, especially those in the consumer packaged goods (CPG) sector, as they strive to boost growth by eliminating artificial ingredients. General Mills has already removed artificial flavors and colors from some of its cereals, while Kraft has done the same with its popular Mac & Cheese products. Since a groundbreaking 2007 study linked artificial food colors to hyperactivity in children, consumers have been increasingly demanding 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, many manufacturers have added proteins, probiotics, vitamins, and other health-oriented components to their products. These offerings promise specific benefits, distinguishing everything from beverages to cereals and snacks, leading to a market worth over $100 billion.
Could this indicate a waning interest in functional foods? It’s possible. Nielsen’s findings suggest that the more significant takeaway is that manufacturers are not fully leveraging the opportunity to promote their products as free from artificial ingredients. Although the research firm cites a potential sales figure of $240 billion, this may be exaggerated, as an influx of manufacturers claiming such benefits could lead to market saturation. Nevertheless, it highlights a clear opportunity for growth.
There is a risk that manufacturers might overreach their health claims by applying “free from” and “made without” labels to sugary products, which could lead to consumer skepticism. Advocacy groups, including the Center for Science in the Public Interest, may disapprove of such tactics. However, from a sales perspective, this strategy has been effective in categories such as cereals and fresh bakery items. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers.
Additionally, amidst these trends, issues like calcium citrate nausea may arise, as consumers become more conscious of their dietary choices. This concern could influence how manufacturers position their products in the market, especially as they navigate the delicate balance between health claims and consumer expectations.