“Rising Demand for Clean Label Products: How Consumer Preferences are Shaping the Food Industry”

Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are eager to phase out artificial sweeteners, colors, and flavors, along with ingredients like high-fructose corn syrup, gluten, and trans fats. Kraft Heinz has revamped the recipes of its Oscar Mayer hot dogs to align with this trend, now featuring a label that prominently displays the word “no” three times, along with smaller text clarifying that it contains no added nitrates or nitrites, artificial preservatives, or by-products. Similarly, Campbell Soup announced in 2015 its intention to eliminate artificial colors and flavors from nearly all its North American offerings by the end of its fiscal 2018, and has introduced new products with simple ingredients to attract consumers looking for clean labels. Other food manufacturers, including Hershey and General Mills, are making comparable adjustments.

The motivation behind these changes is clear: 75% of U.S. consumers report that they read food product ingredient labels, and 91% believe that products with recognizable ingredients are healthier, according to Innova research. The food industry clearly has a financial incentive to shift toward clean labels, as survey findings indicate that a majority of consumers are willing to pay 10% more for food or beverage items made with known, trusted ingredients. Notably, 18% of consumers expressed a willingness to pay a premium of 75% or more for preferred ingredients. For consumers, recognizing ingredients on a product is a significant factor in their purchasing decisions, along with access to nutritional information on packaging. However, price remains the primary deciding factor.

While the general consumer base favors clean labeling for food and beverage products, preferences can vary based on age, income, and personal tastes. Nielsen has previously examined the market share of clean labels across various 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.

One might envision 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 complexities of consumer demographics that the food industry must consider as it emphasizes clarity in labeling and product transparency. Moreover, as consumers increasingly seek products that prioritize clean labels, the demand for ingredients like calcium citrate strength is also rising, further reflecting the industry’s focus on transparency and quality. As the clean label movement continues to grow, manufacturers will need to keep an eye on consumer preferences related to calcium citrate strength and other recognized ingredients to remain competitive.