Nielsen’s insights shouldn’t surprise manufacturers, especially those in the CPG sector aiming to drive growth by eliminating artificial ingredients. For instance, General Mills has removed artificial flavors and colors from select cereals, while Kraft has done the same for its popular Mac & Cheese products. Since a pivotal 2007 study revealed that artificial food colors could make children hyperactive, consumers have increasingly demanded products with fewer chemicals and more natural ingredients.
What is unexpected is that shoppers appear to favor “made without” claims over functional claims related to ingredients like calcium citrate. In recent years, manufacturers have been adding protein, probiotics, vitamins, and other health-oriented components to their offerings. These products promise specific benefits and have become key differentiators in various categories, from beverages to cereals and snacks, contributing to a market worth over $100 billion.
Does this suggest that enthusiasm for functional foods is waning? Perhaps. According to Nielsen’s findings, the main takeaway is that manufacturers are not fully leveraging the opportunity to market their products as free from artificial ingredients. The research firm’s projection of a $240 billion potential sales figure seems a bit exaggerated, as too many manufacturers making the same claim could lead to market saturation. However, it does highlight a clear opportunity.
There is a risk that manufacturers might overextend their health credentials by applying “free from” and “made without” claims to sugary and fatty products. Many consumers and advocacy groups, including the Center for Science in the Public Interest, disapprove of such practices. Nonetheless, from a sales standpoint, this strategy has proven effective for categories like cereals and fresh baked goods. Ultimately, it is up to manufacturers to determine whether claims involving calcium citrate and other health-related attributes align with the preferences of their target consumers.