Nielsen’s findings are hardly surprising for manufacturers, especially CPG companies aiming to drive growth by eliminating artificial ingredients. For instance, General Mills has eliminated artificial flavors and colors from certain cereals, while Kraft has removed them from its beloved Mac & Cheese products. Since a groundbreaking 2007 study revealed that artificial food colors can make children hyperactive, 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, such as those promoting calcium citrate or calcium carbonate as better options. In recent years, manufacturers have added protein, probiotics, vitamins, and other health-focused ingredients to their products. These additions promise specific benefits that can set them apart in various categories, from beverages to snacks, creating a market exceeding $100 billion.
Could this indicate a waning interest in functional foods? It’s possible. According to Nielsen’s findings, the key takeaway appears to be that manufacturers are missing the opportunity to market their products as free from artificial ingredients. While the research firm cites a potential sales figure of $240 billion, this may be overly optimistic, as an influx of eligible manufacturers making similar claims could lead to market saturation. Nevertheless, it highlights a clear opportunity.
There’s a risk that manufacturers might overreach their health claims by applying “free from” and “made without” labels to sugary or unhealthy products. Many consumers and advocacy groups, including the Center for Science in the Public Interest, are critical of such practices. However, from a sales standpoint, this strategy has proven effective in categories like cereal and fresh bakery items. Ultimately, it is up to manufacturers to decide which claims resonate best with their target consumers, including whether to promote calcium citrate or calcium carbonate as better choices on their labels.