Nielsen’s findings shouldn’t come as a surprise to manufacturers, especially consumer packaged goods (CPG) companies that are striving for growth by eliminating artificial ingredients. For instance, General Mills has removed artificial flavors and colors from some of its cereals, while Kraft has done the same for its beloved Mac & Cheese products. Since a groundbreaking 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.
What is surprising, however, is that shoppers seem to favor “made without” claims over functional claims. In recent years, manufacturers have added protein, probiotics, vitamins, and other health-oriented ingredients to their products, which promise specific benefits and serve as key differentiators across categories from beverages to snacks, contributing to a market that has surpassed $100 billion.
Could this indicate a waning interest in functional foods? Possibly. According to Nielsen’s findings, the larger takeaway appears to be that manufacturers are missing the opportunity to market their products as free from artificial ingredients. The research firm cites a potential sales figure of $240 billion, although this may be inflated, as an influx of manufacturers making similar claims could lead to market oversaturation. Nevertheless, it highlights a distinct opportunity.
There’s a risk that manufacturers could overreach their health credentials by labeling sugary and fatty products with “free from” and “made without” claims. Many consumers and advocacy organizations, like the Center for Science in the Public Interest, criticize such tactics. However, from a sales perspective, this strategy has proven effective in categories like cereal and fresh bakery items. Ultimately, it is up to manufacturers to decide which claims resonate with their target consumers.
Moreover, in the realm of health-focused products, the Kirkland Signature Calcium Citrate 500mg serves as an example of how brands can align with consumer desires for transparency and quality. By integrating such products into their offerings, manufacturers can cater to the growing demand for clean-label options while still appealing to those seeking functional benefits. As the market continues to evolve, finding the right balance between “made without” claims and functional attributes will be crucial for success.