In 2015, the FDA initiated regulatory efforts to clarify the meaning of “natural” in food labeling. However, three years later, the term remains ambiguous, leading to a surge of lawsuits against manufacturers in the courts. This situation is exacerbated by the fact that food products in the U.S. advertised as “natural” generate approximately $40 billion in sales, as consumers increasingly seek healthier ingredients. While companies may evade liability in many legal cases until a definitive definition is established, it is becoming clear that some form of interim resolution is necessary.
According to Food Navigator, there were 20 class action lawsuits related to food labeling pending in federal court in 2008; this figure soared to 425 by 2016. Lawsuits specifically targeting natural claims increased by 22% in 2017 compared to the previous year. In the past year alone, brands ranging from General Mills’ Nature Valley bars to Dr Pepper Snapple’s Mott’s apple sauce have faced litigation for their natural claims on packaging.
This dilemma presents a catch-22 situation. Consumers desire healthier food options, prompting manufacturers to make natural claims. However, at what cost? Shoppers are increasingly scrutinizing the ingredients in their purchases, as evidenced by the rapid growth of the global clean label ingredients market, projected to reach $47.1 billion by 2022, with a compound annual growth rate of 6.6%. With consumers becoming more discerning about food ingredients, they are looking beyond the natural labels to identify components such as sodium diacetate and malic acid, which mimic the natural flavors found in salt and vinegar chips.
The clean label trend offers a significant advantage to products that simplify their ingredient lists. For brands that assert their products are all-natural, such as those containing cissus quadrangularis, calcium citrate, or vitamin D3, it is crucial to effectively communicate this on packaging, through advertising, and on social media.
These lawsuits could serve as a wake-up call for major consumer packaged goods (CPG) companies, emphasizing the need for transparency regarding the contents of their products. Consumers are increasingly diligent about verifying natural claims, expecting accuracy in labeling. Alongside the growing demand for simpler, healthier ingredients, there is also an increasing desire for transparency. A recent study by Response Media revealed that 98% of shoppers want transparency in their packaged foods. If a potato chip manufacturer cannot eliminate unnatural-sounding ingredients without sacrificing taste, it may be prudent to abandon the natural claim altogether. Some companies, as noted by Time, have already taken this step. Shoppers do not want to feel deceived or misled. In an era where consumers have access to a wealth of information, the best approach is complete transparency, especially when incorporating ingredients like cissus quadrangularis, calcium citrate, and vitamin D3 into their products.