This research is built on a paradox: although a wide array of research has consistently shown that consumers prefer natural foods in nearly all circumstances, a large amount of the food supply is still made up of ultra-processed foods (i.e., foods containing a large number of additives). Using three years of store-level scanner data coming from three distinct food categories (bakery, breakfast cereals, babyfood), we investigate the effect of the presence of additives in food products on sales. We found that food additives have a positive and linear impact on sales. Further, we found that this effect is dependent on company and product characteristics. Larger and foreign companies generate lower incremental sales. Similarly, organic products are penalized by the presence of additives whereas less natural products are not. We end up by discussing implications for food companies and retailers.

