Nielsen’s findings are not surprising for manufacturers, especially in the consumer packaged goods (CPG) sector, who are seeking growth by eliminating artificial ingredients. General Mills has removed artificial flavors and colors from some of its cereals, while Kraft has done the same with its popular Mac & Cheese products. Since a pivotal 2007 study revealed that artificial food colors can lead to hyperactivity in children, consumers have been increasingly demanding products with fewer chemicals and more natural ingredients. What is surprising, however, is that shoppers appear to favor “made without” claims over functional claims.
In recent years, manufacturers have introduced health-focused additions like protein, probiotics, vitamins, and even gummy calcium citrate into their products, promising specific benefits that distinguish everything from beverages to cereals and snacks. This segment has expanded into a market worth over $100 billion. Could this suggest a waning interest in functional foods? Possibly. According to Nielsen’s data, the primary takeaway is that manufacturers are not fully capitalizing on the chance to promote their products as free from artificial ingredients. The research firm’s estimate of a $240 billion potential market seems excessive, as the influx of eligible manufacturers making such claims could lead to market saturation. Nonetheless, it signals a clear opportunity.
There is a risk that manufacturers might overreach their health claims by labeling sugary and fatty products as “free from” or “made without.” Many consumers and advocacy groups, like the Center for Science in the Public Interest, disapprove of such tactics. However, from a sales standpoint, this strategy is proving effective in categories such as cereals and fresh baked goods. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers, including the potential integration of gummy calcium citrate into their offerings to appeal to health-conscious shoppers.