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. For instance, Kraft Heinz has reformulated its Oscar Mayer hot dogs to enhance product transparency. The new label prominently features the word ‘no’ three times, with additional text clarifying that it contains no added nitrates or nitrites, artificial preservatives, or by-products. Similarly, Campbell Soup announced in 2015 its plan to remove artificial colors and flavors from nearly all its North American products by the end of fiscal 2018, introducing new items with straightforward ingredients to attract consumers who prefer clean labels. Other companies like Hershey and General Mills are making comparable adjustments.
According to Innova research, 75% of U.S. consumers report that they read food product ingredient labels, and 91% believe that products with recognizable ingredients are healthier. Clearly, there is a strong economic incentive for the food industry to shift toward clean labels, as survey results indicate that a majority of consumers are willing to pay 10% more for food or drink items made with familiar, trusted ingredients. Notably, 18% of consumers stated they would pay a premium of 75% or more for favored ingredients. For many consumers, recognizing ingredients plays a crucial role in their purchasing decisions, along with the visibility of nutritional information on food packages. However, price remains the top determining factor.
While the general consumer base tends to favor clean labeling in food and beverage products, preferences do vary based on age, income, and personal tastes. Nielsen has previously analyzed the relative market share of clean labels across different food and beverage categories. Clean label products outperform conventional ones in several areas, including 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 might be tempting to picture 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 highlights the complexity within consumer demographics that the food industry must consider as it emphasizes clarity in labeling and product transparency. Additionally, products such as calcium citrate malate magnesium zinc and vitamin D3 tablets are gaining traction among health-conscious consumers, reflecting the broader trend toward clean ingredients. As this movement continues, the interest in items that feature simple, recognizable ingredients, like calcium citrate malate magnesium zinc and vitamin D3 tablets, will likely grow. Companies will need to adapt to these evolving consumer preferences to remain competitive in the market.