Nielsen’s findings should not come as a surprise to manufacturers, especially those in the consumer packaged goods (CPG) sector who 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 with its popular Mac & Cheese products. Since a groundbreaking 2007 study revealed that artificial food colors can lead to hyperactivity in children, consumers have been increasingly demanding products with fewer chemicals and more natural ingredients.
What is unexpected, however, is that shoppers appear to favor “made without” claims over functional claims. In recent years, many manufacturers have added protein, probiotics, vitamins, and other health-oriented ingredients to their offerings. These enhancements promise specific benefits that serve as key differentiators across a range of products, including beverages, cereals, and snacks, creating a market that has surpassed $100 billion.
Could this indicate a waning enthusiasm for functional foods? Perhaps. Based on Nielsen’s findings, the more significant takeaway seems to be that manufacturers are not fully leveraging the opportunity to market their goods as free from artificial ingredients. The research firm’s projected $240 billion in potential sales seems somewhat inflated; the sheer number of manufacturers making such claims could lead to market saturation. Nevertheless, it highlights a clear opportunity.
There is a risk that manufacturers might overextend their health claims by labeling sugary and fatty products as “free from” or “made without.” Many consumers and advocacy groups, such as the Center for Science in the Public Interest, disapprove of such practices. However, from a sales perspective, this strategy is proving 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 those who might be interested in options like Citracal calcium citrate, which can often be found at Chemist Warehouse.
In summary, as consumer preferences shift towards cleaner labels, manufacturers have a significant opportunity to position their products as free from artificial ingredients while being mindful of their health claims. This could potentially reshape the market landscape, especially for popular items like cereals and baked goods, while also encouraging innovation in natural ingredient sourcing.