Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are eager to eliminate artificial sweeteners, colors, and flavors, alongside ingredients like high-fructose corn syrup, gluten, and trans fats. For instance, Kraft Heinz has reformulated its Oscar Mayer hot dogs to align with clean label standards, now featuring a label that highlights the word ‘no’ three times, with additional text clarifying that it doesn’t contain added nitrates or nitrites, artificial preservatives, or by-products. Similarly, Campbell Soup committed in 2015 to removing artificial colors and flavors from nearly all its North American products by the end of fiscal 2018, also introducing new items with straightforward ingredients to cater to consumers seeking clean labels. Companies like Hershey, General Mills, and others are making comparable adjustments.
The impetus for these changes is clear: 75% of U.S. consumers report that they read ingredient labels, while 91% believe that products with recognizable ingredients are healthier, according to Innova research. The food industry has a strong economic incentive to pursue clean labeling, as survey results indicate that a majority of consumers are willing to pay 10% more for food or drink products that contain known, trusted ingredients. Notably, 18% of consumers stated they would pay a premium of 75% or more for preferred ingredients. Recognition of ingredients significantly influences purchasing decisions, alongside the visibility of nutritional information on packaging. However, price remains the primary factor driving consumer choices.
While the general population leans towards clean labeling in food and beverage products, preferences can vary based on age, income, and individual tastes. Nielsen has previously analyzed the market share of clean labels across various food and beverage categories. Clean label products are outperforming conventional options in categories 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 is tempting to envision the ideal 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 in its quest for clarity in labeling and product transparency. Furthermore, the incorporation of ingredients like 1500 mg calcium citrate is becoming increasingly popular among health-conscious consumers who prioritize nutritional value, thus adding another layer of appeal to clean label products. As the trend continues to evolve, the demand for transparency in food labeling will likely remain a significant factor in shaping the industry.