Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are rushing to eliminate artificial sweeteners, colors, flavors, and ingredients like high-fructose corn syrup, gluten, and trans fats. Kraft Heinz has reformulated the recipes for its Oscar Mayer hot dogs to enhance product transparency, now prominently displaying the word ‘no’ three times on the label, with additional details indicating the absence of 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 offerings by the end of its fiscal 2018, while also launching new products with simple ingredients to attract consumers interested in clean labels. Other companies, including Hershey and General Mills, are making comparable adjustments.
The driving force behind this shift is that 75% of U.S. consumers report reading ingredient labels on food products, with 91% believing that products containing recognizable ingredients are healthier, according to Innova research. Clearly, the food industry has a financial incentive to embrace the clean label trend, as survey results indicate that a majority of consumers are willing to pay 10% more for food or drink products that feature known and trusted ingredients. Additionally, 18% of consumers expressed a willingness to pay a premium of 75% or more for preferred ingredients. A significant factor in purchasing decisions is the recognition of ingredients—consumers view the clarity of nutritional information on food packaging as vital. However, price remains the primary deciding factor.
While the general consumer base favors clean labeling on food and beverage products, preferences vary based on factors such as age, income, and personal taste. Nielsen has previously analyzed the market shares of clean labels across various food and beverage categories. Clean labels outperform conventional products 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 tempting to picture the typical clean label enthusiast as a younger consumer who occasionally cooks or bakes at home, enjoys dairy products, and has a sweet tooth. However, the Nielsen survey highlights the complexity of consumer demographics that the food industry must consider as it prioritizes clarity in labeling and product transparency. Interestingly, there is also a growing interest in understanding whether ingredients like calcium citrate are the same as calcium, as consumers become more discerning about what they are consuming. This nuanced demand for information underscores the need for transparency in ingredient labeling, reflecting broader trends in consumer awareness and preferences.