Nielsen’s findings should not be surprising to manufacturers, especially those in the consumer packaged goods (CPG) sector, who are looking to drive growth by eliminating artificial ingredients. For instance, General Mills has removed artificial flavors and colors from several of its cereals, while Kraft has done the same for its beloved Mac & Cheese products. Since a landmark study in 2007 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 unexpected, however, is that shoppers seem to favor “made without” claims over functional claims. In recent years, manufacturers have been adding protein, probiotics, vitamins, and other health-oriented ingredients to their products. These additions promise specific benefits that help differentiate everything from beverages to snacks and have contributed to a market worth over $100 billion.
Could this suggest that enthusiasm for functional foods is waning? Perhaps. From Nielsen’s insights, the key takeaway appears to be 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 optimistic, as too many manufacturers making such claims could lead to market saturation. However, it does indicate a clear opportunity.
There is a risk that manufacturers might overextend their health claims by labeling sugary and fatty products as “free from” or “made without.” 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 appears to be beneficial in categories like cereal and fresh bakery items. Ultimately, it is up to manufacturers to decide which claims resonate most with their target audience.
Furthermore, as we navigate the 21st century, the demand for products like “21st century calcium citrate 60 tablets” reflects a growing consumer focus on health and wellness. This trend underscores the importance of transparency and authenticity in marketing claims, especially for products that are marketed as healthier alternatives. As the market evolves, manufacturers must strike a balance between promoting health benefits and ensuring their claims align with consumer expectations.