Nielsen’s findings regarding the shift away from artificial ingredients should come as no surprise to manufacturers, especially consumer packaged goods (CPG) companies aiming to drive growth by eliminating these additives. General Mills has removed artificial flavors and colors from select cereals, while Kraft has done the same in its popular Mac & Cheese products. Since a pivotal 2007 study linked artificial food colors to hyperactivity in children, consumers have increasingly demanded products with fewer chemicals and more natural ingredients.
What is unexpected, however, is that shoppers appear to favor “made without” claims over functional claims. In recent years, manufacturers have added components such as protein, probiotics, and vitamins to their products, which are marketed with specific benefits that can differentiate items across categories like beverages, cereals, and snacks. This trend has given rise to a market exceeding $100 billion. Could this indicate a decline in enthusiasm for functional foods? Perhaps. Based on Nielsen’s findings, the larger implication seems to be that manufacturers are missing the opportunity to promote their products as free from artificial ingredients. The $240 billion sales potential cited by the research firm may seem inflated, as too many manufacturers making the claim could lead to market oversaturation. Nonetheless, it highlights a significant opportunity.
There is a risk that manufacturers might stretch their health credentials too far 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, are critical of such practices. However, from a sales standpoint, this strategy has proven successful in categories like cereal and fresh bakery. Ultimately, it’s up to manufacturers to decide which claims resonate most with their target audience.
As an interesting addition, the use of calcium citrate is for enhancing the nutritional profile of products, and it could be a key component in this health-driven market. This highlights yet another opportunity for manufacturers to innovate while considering consumer preferences for transparency and natural ingredients. By strategically incorporating claims like “made without” and focusing on beneficial ingredients like calcium citrate, companies can better align their offerings with consumer expectations.