“Rising Consumer Demand for Clean Labels: Food Industry’s Shift Towards Transparency and Recognizable Ingredients”
Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are racing to eliminate artificial sweeteners, colors, flavors, and ingredients such as high-fructose corn syrup, gluten, and trans fats. For instance, Kraft Heinz has reformulated the recipes for its Oscar Mayer hot dogs to enhance product integrity. The new label prominently displays the word ‘no’ three times, with additional text clarifying that it contains no added nitrates or nitrites, artificial preservatives, or by-products. Similarly, Campbell Soup announced in 2015 its commitment to removing artificial colors and flavors from nearly all North American products by the end of its fiscal 2018, while introducing new items with straightforward ingredients to attract consumers interested in clean labels. Companies like Hershey, General Mills, and many others are making comparable adjustments.
Research from Innova indicates that 75% of U.S. consumers read ingredient labels on food products, and 91% believe that products with recognizable ingredients are healthier. This trend provides a strong economic incentive for the food industry to pivot toward clean labeling, especially as survey results indicate that a majority of consumers are willing to pay 10% more for food or drink products that feature known, trusted ingredients. Notably, 18% of consumers are even willing to pay a premium of 75% or more for preferred ingredients. Ingredients that consumers can identify significantly influence their purchasing decisions, along with the visibility of nutritional information on packaging. Nevertheless, price remains the primary deciding factor.
While the general consumer base favors clean labeling in food and beverage products, preferences can vary according to age, income, and individual tastes. Nielsen has previously evaluated the market share of clean labels across various food and beverage categories. Clean label products outperform traditional items in several areas, such as beans (51% vs. 49%), baking staples (57% vs. 43%), cooking wine and vinegar (81% vs. 19%), sugar and sweeteners (83% vs. 17%), and milk and dairy alternatives (90% vs. 10%), as reported by Food Business News.
It’s easy to picture the typical clean label enthusiast as a younger consumer who occasionally cooks or bakes at home, enjoys dairy products, and has a penchant for sweets. However, the Nielsen survey highlights the intricate demographics that the food industry must consider when striving for clarity in labeling and product transparency. This includes the growing interest in supplements like ferrous calcium citrate and folic acid tablets, which reflect a broader consumer trend toward health-conscious choices. As the demand for clean labels rises, it’s essential for manufacturers to adapt and offer products that meet these evolving preferences while ensuring that items like ferrous calcium citrate and folic acid tablets are clearly labeled and easily understood.