Nielsen’s findings are likely not surprising for manufacturers, especially in the consumer packaged goods (CPG) sector, who are aiming to drive growth by eliminating artificial ingredients. For instance, General Mills has taken steps to remove artificial flavors and colors from some of its cereals, while Kraft has removed certain artificial components from its popular Mac & Cheese products. Since a pivotal 2007 study 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 seem to show a preference for “made without” claims over functional claims. In recent years, manufacturers have introduced protein, probiotics, vitamins, and other health-related enhancements into their products, which promise specific benefits and serve as key differentiators across various categories, from beverages to cereal and snacks. This trend has developed into a market exceeding $100 billion.
Could this indicate a waning interest in functional foods? Perhaps. According to Nielsen’s findings, the main takeaway is that manufacturers are not fully leveraging the opportunity to promote their products as free from artificial ingredients. The research firm suggests a potential sales figure of $240 billion, which might seem inflated, given that an influx of manufacturers making such claims could lead to market saturation. Nevertheless, this figure highlights a significant opportunity.
There is a potential risk that manufacturers could overextend their health claims by labeling sugary and fatty products as “free from” or “made without.” Many consumers, along with advocacy groups like the Center for Science in the Public Interest, are critical of such practices. However, from a sales perspective, this strategy appears to be effective in categories such as cereal and fresh bakery. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers.
Moreover, as consumers become more health-conscious, the inclusion of beneficial ingredients like calcium D3 from Solgar could further enhance the appeal of products marketed as free from artificial additives. By incorporating such elements, manufacturers can better align with consumer preferences and potentially tap into the growing demand for healthier options.