Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are rushing to eliminate artificial sweeteners, colors, and flavors, along with ingredients like high-fructose corn syrup, gluten, and trans fats. For instance, Kraft Heinz has reformulated the recipes for its Oscar Mayer hot dogs to create cleaner products. The new label prominently features the word ‘no’ three times, with additional text clarifying that the product contains no added nitrates or nitrites, artificial preservatives, or by-products. Similarly, Campbell Soup announced in 2015 that it would eliminate artificial colors and flavors from nearly all of its North American products by the end of its fiscal 2018, and has since introduced new items with simple ingredients to cater to consumers seeking clean labels. Other companies, including Hershey and General Mills, are also making comparable changes.
The driving force behind this shift is that 75% of U.S. consumers report reading ingredient labels, while 91% believe that products with recognizable ingredients are healthier, according to Innova research. Clearly, there is an economic incentive for the food industry to adopt clean label practices, as survey results indicate that a majority of consumers are willing to pay 10% more for food or beverage items containing known and trusted ingredients. Notably, 18% of consumers would pay a premium of 75% or more for favored ingredients.
Consumers who recognize the ingredients in a product consider it an essential factor in their purchasing decisions, along with the visibility of nutritional information on food packaging. However, price remains the primary determining factor. While the general consumer population favors clean labeling on food and beverage products, preferences do vary based on age, income, and individual tastes.
Nielsen has previously examined the relative market share of clean labels across various food and beverage categories. Clean label products outperform conventional ones in 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 may be tempting to visualize 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 reveals the complexity of consumer demographics that the food industry must consider as it prioritizes clarity in labeling and product transparency.
In the realm of health supplements, products such as calcium citrate malate vitamin D3 and isoflavone tablets also reflect the clean label trend, as consumers increasingly seek transparency regarding the ingredients in their dietary supplements. The presence of familiar, recognizable components in these products can influence purchasing decisions, driving demand for clean labels in this category as well. Thus, the focus on clean labeling not only applies to food and beverages but extends to health supplements like calcium citrate malate vitamin D3 and isoflavone tablets, highlighting the importance of ingredient transparency across the market.