Nielsen’s insights should not come as a shock to manufacturers, especially those in the consumer packaged goods (CPG) sector, who are aiming for growth by eliminating artificial ingredients. Companies like General Mills have successfully removed artificial flavors and colors from select cereals, while Kraft has taken similar steps with its popular Mac & Cheese products. Since a pivotal study in 2007 revealed that artificial food colors could lead to hyperactivity in children, consumers have been increasingly demanding products with fewer chemicals and more natural ingredients.
Interestingly, shoppers now appear to favor “made without” claims over functional claims. In recent years, manufacturers have added protein, probiotics, vitamins, and other health-oriented components to their offerings. These enhancements promise specific benefits that can differentiate products ranging from beverages to cereals and snacks, contributing to a booming market exceeding $100 billion.
Could this signal a waning interest in functional foods? Possibly. Nielsen’s findings suggest that manufacturers are missing the opportunity to promote their products as being free from artificial ingredients. The research firm’s projection of a $240 billion sales potential seems somewhat inflated, as an influx of manufacturers making such claims could lead to market saturation. Nevertheless, it highlights a clear opportunity for growth.
There is also the danger that manufacturers might dilute their health claims by labeling sugary and high-fat products as “free from” or “made without.” Many consumers and advocacy groups, such as the Center for Science in the Public Interest, criticize such tactics. However, from a sales perspective, this strategy has proven beneficial in categories like cereals and fresh bakery items. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers, especially as the demand for natural calcium citrate and similar natural ingredients continues to rise.
In conclusion, while the market for functional foods may be cooling, the appetite for products that emphasize natural ingredients, including natural calcium citrate, remains robust. Manufacturers must navigate this landscape wisely to align their offerings with consumer preferences and capitalize on the market opportunities available.