The Wall Street Journal recently issued compelling data around an assessment of over 450K products, which ultimately showed that around 13% of consumer packaged goods (CPG) in the U.S. contain artificial dyes1 – with some scientific research and anecdotal evidence pointing to its potential link to neurobehavioral issues in children.2 What’s more, it was found that 40% of the products included three or more types of these dyes.3

Bringing to light the serious nutritional shortcomings of CPGs is undoubtedly valuable, especially when it comes to consumer education. But for those committed to spreading the word about the importance of thoughtful dietary choices – such as the USDA and a variety of companies that create nutrition-first products – change is entirely too slow.

Clearly, “progress” is up for interpretation.

CPG Manufacturers, Meet the Modern Consumer

Gone are the days of blind shopping, as with technological advancements, such as AI-driven apps and wearables, dietary transparency is now in the palm of consumer hands, which is showing to be very attractive as health-consciousness increases. In fact, 23% of U.S. consumers turn to a wearable tracker or app for health information (an increase of 20% from 2021), 24% use of an app for weight management, and 18% use an app to provide nutritional information that will help help guide their dietary choices.4

Today’s consumers also crave true transparency from the brands they engage with. According to research by the Consumer Brands Association and FMI, 65% of consumers place a great deal of importance on product transparency.5 What’s more, 84% of today’s consumers would trust food manufacturers more if they provided complete and easy to understand information about the ingredients listed on product packaging.6

Putting in the effort into understanding the wants and needs of the modern consumer will set CPG manufacturers on a straighter path towards progress vs. meandering aimlessly in the hopes of hitting their target.

Embracing the Data vs. Ignoring It

Considering the increasing health-conscious mentality of consumers, it is surprising that CPG manufacturers seem to lag in delivering the food and beverage products desired. Certainly, the costs and time associated with reformulations, as well as pressure applied by retailers and investors, must be considered. However, the overwhelming data that indicates a need to pivot tells a compelling story.

Ultra-processed food – common to CPGs – have been linked to serious health issues, as indicated through ongoing research. These foods often contain risky additives and are packed with artificial ingredients, stripped of crucial nutrients during the industrial processing, all in the name of enhancing flavor and delivering longer shelf lives. Unfortunately, heart disease, diabetes and obesity have the potential to result, especially as CPGs are often quicker and cheaper vs. unprocessed or minimally processed foods, such as fruits, vegetables, nuts and seeds.7

Luckily, various initiatives have been put in place – or are in process – that are forcing the hand of today’s CPG manufacturers. Back in January, the FDA proposed a new rule that nutrition labels must be placed on the front of all packaged food and beverages as a method to help consumers make better dietary choices, quickly and easily.8 With the potential to take effect as soon as 2028, these labels would clearly lay out the amount of saturated fat, sodium and added sugars are in products, accompanying the standard nutrition information found on the back.9

Picking Up the Pace

As CPG manufacturers continue to drag their feet, progress in nutrition is on shaky ground, and make no mistake – consumers will make note. If these companies ignore the purchasing drivers of consumers – their revenue generators – and turn a blind eye to the potential serious health issues associated with their products, damage to business growth could be substantial, especially in the long term if consumers continue to lean towards healthier choices.

CPG manufacturers, it’s time to shape up or ship out!

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References

  1. How Prevalent Are Dyes in Foods? We Crunched the Numbers. Wall Street Journal website. https://www.wsj.com/business/artificial-food-dyes-database-fcf34296 March 23, 2025.
  2. Are synthetic food dyes bad for you? Here’s what the science says. Science News website. https://www.sciencenews.org/article/synthetic-food-dye-science-ban October 28, 2024.
  3. How Prevalent Are Dyes in Foods? We Crunched the Numbers. Wall Street Journal website. https://www.wsj.com/business/artificial-food-dyes-database-fcf34296 March 23, 2025.
  4. WATCH: Tech is shaping consumer eating habits – how can manufacturers stay one step ahead? FoodNavigator-USA website. https://www.foodnavigator-usa.com/News/Promotional-features/Smart-technology-is-impacting-human-nutrition-and-eating-habits/ August 8, 2024.
  5. Consumers Seek CPG Product Transparency Through Digital Platform. Forbes website. https://www.forbes.com/sites/garydrenik/2024/09/26/consumers-seek-cpg-product-transparency-through-digital-platform/ September 26, 2024.
  6. Consumers Seek CPG Product Transparency Through Digital Platform. Forbes website. https://www.forbes.com/sites/garydrenik/2024/09/26/consumers-seek-cpg-product-transparency-through-digital-platform/ September 26, 2024.
  7. Dangerous ultra-processed foods are linked to more than 30 health conditions. Here’s how to identify and avoid them. Fortune website. https://fortune.com/well/article/ultra-processed-foods-health/ November 25, 2024.
  8. FDA proposes putting nutrition info on the front of food packages. NBC News website. https://www.nbcnews.com/health/health-news/fda-proposes-putting-nutrition-info-front-food-packages-rcna175977 January 14, 2025.
  9. FDA proposes putting nutrition info on the front of food packages. NBC News website. https://www.nbcnews.com/health/health-news/fda-proposes-putting-nutrition-info-front-food-packages-rcna175977 January 14, 2025.