Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are racing to eliminate artificial sweeteners, colors, and flavors, along with ingredients like high-fructose corn syrup, gluten, and trans fats. Kraft Heinz has reformulated its Oscar Mayer hot dogs to enhance their clean label appeal, now prominently featuring the word ‘no’ three times on the packaging, with additional notes indicating the absence of added nitrates or nitrites, artificial preservatives, and by-products. Campbell Soup, which committed in 2015 to removing artificial colors and flavors from nearly all its North American offerings by the end of its fiscal 2018, has launched new products with simple ingredients to attract consumers interested in clean labels. Similarly, Hershey, General Mills, and many other food manufacturers are implementing comparable changes.
The motivation behind these shifts 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 estimates from Innova research. There is a strong economic incentive for the food industry to adopt clean labeling, as survey results show that a majority of consumers are willing to pay 10% more for food or drink products made with known, trusted ingredients. Furthermore, 18% of consumers are ready to pay a premium of 75% or more for favored ingredients. Recognizing ingredients is a crucial factor in consumers’ purchasing decisions, alongside the visibility of nutritional information on food packaging. However, price remains the primary determining factor in their choices.
While the general consumer population favors clean labeling for food and beverage products, preferences can vary based on age, income, and individual tastes. Nielsen has previously analyzed the market share of clean labels across various food and beverage categories. According to Food Business News, categories where clean labels outperform conventional products include 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%).
It might 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 penchant for sweets. However, as the Nielsen survey indicates, there is significant complexity in consumer demographics that the food industry must consider as it emphasizes clarity in labeling and product transparency.
In this context, products containing ingredients like Rite Aid calcium citrate are also gaining traction among health-conscious consumers. The demand for transparency and simplicity in ingredients is reshaping the food landscape, with brands increasingly featuring clean labels that resonate with a diverse audience seeking healthier choices.