In 2015, the FDA initiated regulatory efforts to clarify the definition of “natural” in food labeling. However, three years later, the term remains ambiguous, leading to a surge of lawsuits against manufacturers inundating the courts. This issue is further complicated by the fact that food products labeled as natural in the U.S. generate approximately $40 billion in sales, driven by consumer demand for healthier ingredients. While corporations may escape liability in many cases until a clear definition is established, it is increasingly clear that an interim solution is essential.
According to Food Navigator, there were 20 food labeling class action lawsuits pending in federal court in 2008, which escalated to 425 by 2016. The number of cases specifically addressing natural claims saw a 22% increase in 2017 compared to the previous year. In the past year alone, companies ranging from General Mills’ Nature Valley bars to Dr Pepper Snapple’s Mott’s apple sauce have faced lawsuits over natural claims made on their packaging.
This situation presents a catch-22: consumers desire healthier food options, and manufacturers respond with natural claims. However, at what cost? Shoppers are increasingly focused on the ingredients in their purchases, as evidenced by the rapid growth of the global clean label ingredients market, which is projected to reach $47.1 billion by 2022, with a compound annual growth rate of 6.6%. As consumers scrutinize their food’s ingredients, they begin to look beyond natural labels, discovering additives like sodium diacetate and malic acid, which mimic the natural flavors found in salt and vinegar chips.
The clean label trend offers a significant advantage to products that simplify their ingredient lists. Brands that are genuinely all-natural should make an effort to communicate this on their packaging, through advertising, and on social media. However, the rise in lawsuits signals to major consumer packaged goods (CPG) companies that they must be transparent about their product contents, as consumers will closely examine natural label claims for accuracy.
In addition to the growing demand for simpler, healthier ingredients, consumers are increasingly seeking transparency. A recent study by Response Media found that 98% of shoppers desire transparency in their packaged food. If a potato chip manufacturer cannot eliminate non-natural-sounding ingredients from their product without sacrificing taste, it may be prudent to forgo the natural claim entirely. Some companies, as reported by Time, have already taken this step. Shoppers do not want to feel deceived or overpromised. In an era where consumers have vast amounts of information at their disposal, the best strategy is complete transparency.
Furthermore, when discussing ingredients, it’s pertinent to compare options like calcium citrate vs calcium phosphate, as consumers become more discerning about what they put into their bodies. As awareness of ingredient quality rises, the preference for clear, honest labeling will only intensify, prompting a reevaluation of what constitutes a natural claim in the food industry. To remain competitive, brands must prioritize transparency and authenticity in their messaging, particularly regarding the ingredients they choose to use.