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The ‘natural’ opportunity for brands

ingredients3Consumers are adopting a back-to-basics mindset where a focus on simple ingredients and fewer artificial or processed foods is a priority, says the latest research to come from Nielsen.

Findings from Nielsen’s Global Health and Ingredient-Sentiment Survey highlights that Aussie consumers want more ‘natural’ products on supermarket shelves, showcasing a clear gap in the market that could drive healthier bottom lines for manufacturers and retailers.

“Informed and savvy consumers are demanding more from the foods they eat and are happy to pay more if they believe it is better for them,” said Michael Elam-Rye, Associate Director – Retail at Nielsen. “This presents an opportunity for food manufacturers to increase share by offering and marketing products that are formulated with good-for-you ingredients, and an opportunity for retailers to trade consumers up with more premium priced products.”

For Australian consumers, animal products that contain antibiotics or hormones are the most worrying, with six in 10 consumers saying that they actively avoid these products.

The top 10 ingredients that Australian consumers avoid include:

  1. Antibiotics/hormones in animals products
  2. MSG
  3. Artificial preservatives
  4. Artificial flavours
  5. Artificial sweeteners
  6. Foods with BPA packaging
  7. Artificial colours
  8. Sugar
  9. Genetically modified foods
  10. Sodium

Close to nine in 10 respondents said they avoid specific ingredients because they believe them to be harmful to their own or their family’s health; while six in 10 consumers said they are concerned about the long-term health impact of artificial ingredients in their diet.

“Manufacturers should review their product portfolios for opportunities to remove or replace undesirable ingredients, particularly those seen as most objectionable, including antibiotics; artificial colours, flavours, preservatives and sweeteners; GMOs; and packaging made with BPA,” said Elam-Rye. “Manufacturers that have already taken these steps should highlight them prominently in their marketing campaigns. In addition, they should look for opportunities to leverage powerful brand names through line extensions, creating organic and natural alternatives to their existing product lines.

“Manufacturers that innovate by incorporating ingredients and preparation methods that improve the nutritional profile of their product portfolio will be strongly positioned to succeed,” he said.

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