Consumers are increasingly captivated by the idea of clean label products. As a result, food and beverage manufacturers are rushing to eliminate artificial sweeteners, colors, and flavors, as well as 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 offer cleaner options. The new label prominently features the word ‘no’ three times, with smaller 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 remove artificial colors and flavors from nearly all its North American products by the end of its fiscal 2018, introducing new items with straightforward ingredients to attract consumers seeking clean labels. Other major companies like 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 on food products, while 91% believe that familiar ingredients are healthier, according to Innova research. The food industry clearly has a financial incentive to embrace clean labeling, as survey results indicate that a majority of consumers are willing to pay 10% more for food or drink products containing known, trusted ingredients. Notably, 18% of consumers are even prepared to pay a premium of 75% or more for preferred ingredients.
Recognizing ingredients on a product plays a crucial role in purchasing decisions, along with the accessibility of nutritional information on food packaging. However, price remains the primary factor influencing consumer choices. While the general population favors clean labeling, preferences can vary based on age, income, and personal taste. Nielsen has previously analyzed the market share of clean labels across various food and beverage categories. Clean label products outperform conventional ones in areas like 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%), according to Food Business News.
It may be 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 complexity of consumer demographics that the food industry must consider as it emphasizes clarity in labeling and product transparency. Additionally, consumers are becoming more aware of the nutritional benefits of products, such as those containing 250 mg calcium citrate, which they often look for on labels. This trend reinforces the demand for clean label products that not only eliminate questionable ingredients but also highlight beneficial components like calcium citrate, appealing to health-conscious shoppers.