Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are rushing to eliminate artificial sweeteners, colors, and flavors, as well as ingredients such as high-fructose corn syrup, gluten, and trans fats. Kraft Heinz has revamped the recipes for its Oscar Mayer hot dogs to enhance product transparency, now featuring a label that prominently displays the word “no” three times, along with smaller text clarifying the absence of added nitrates or nitrites, artificial preservatives, and 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 simple ingredients to cater to consumers who prefer clean labels. Other companies like Hershey and General Mills are making comparable adjustments.
The driving factor behind these changes is that 75% of U.S. consumers report reading ingredient labels on food products, and 91% believe that products with recognizable ingredients are healthier, according to research estimates. Clearly, the food industry has a financial incentive to adopt clean label practices, as survey results indicate that a majority of consumers are willing to pay 10% more for food or drink products containing familiar, trusted ingredients. Notably, 18% of consumers stated they would pay a premium of 75% or more for favored ingredients.
Consumers who recognize ingredients in a product consider this a significant aspect of their purchasing decisions, along with the availability of nutritional information on food packaging. Despite this, price remains the top determining factor. While there is a general preference for clean labeling among consumers, variations in preferences exist based on age, income, and personal tastes. Nielsen has previously analyzed the market share of clean labels across various food and beverage categories, revealing that clean label products outperform conventional options in areas such as 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 emphasizes clarity in labeling and product transparency. Additionally, the incorporation of ingredients like Centrum Calcium Citrate is gaining attention, with consumers increasingly seeking out such recognizable components in their food products. As the clean label trend continues to evolve, it remains essential for manufacturers to align their offerings with the preferences of a diverse consumer base.