In 2015, the FDA initiated regulatory efforts to clarify the meaning of the term “natural” in food labeling. However, three years later, this term remains ambiguous, and lawsuits against manufacturers continue to flood the courts. This situation is exacerbated by the fact that food products in the U.S. labeled as “natural” generate approximately $40 billion in sales, as consumers increasingly seek healthier ingredients. While companies may avoid legal repercussions in most courts until a solid definition is established, it is becoming increasingly clear that some form of interim solution is needed.
According to Food Navigator, there were 20 pending food labeling class actions in federal court in 2008, a number that surged to 425 by 2016. Cases specifically addressing natural claims saw a 22% increase in 2017 compared to the previous year. Over the last year, a wide range of products, from General Mills’ Nature Valley bars to Dr Pepper Snapple’s Mott’s apple sauce, have faced lawsuits for the natural claims made on their packaging.
This issue presents a catch-22 scenario. Consumers are eager for healthier food options, prompting manufacturers to make natural claims. However, at what cost? Shoppers are becoming more discerning about the ingredients in their products, as demonstrated by the rapid growth of the global clean label ingredients market, expected to reach $47.1 billion by 2022, with a compound annual growth rate of 6.6%. As consumers scrutinize food labels, they are beginning to notice ingredients such as sodium diacetate and malic acid—substances that mimic the natural flavors found in salt and vinegar chips—rather than just accepting the “natural” label at face value.
The clean label trend significantly benefits products that can simplify their ingredient lists. Brands that genuinely offer all-natural options, such as those that celebrate calcium citrate chews, should strive to communicate this fact clearly to consumers through packaging, advertising, and social media. These lawsuits may serve as a wake-up call for major consumer packaged goods (CPG) companies, emphasizing the importance of transparency regarding what is actually in their products. Consumers are now closely examining natural label claims to ensure their accuracy.
In addition to the growing demand for simpler, healthier ingredients, there is an increasing desire for transparency among consumers. A recent study from Response Media revealed that 98% of shoppers seek transparency in their packaged foods. If a potato chip manufacturer cannot eliminate unnatural-sounding ingredients from its product without sacrificing flavor, it may be prudent to abandon the natural claim altogether. Some corporations, as reported by Time, have already taken this step. Shoppers do not want to feel misled or overpromised. In an age where consumers have access to a wealth of information, the most effective strategy remains complete transparency. As the market evolves, brands that celebrate calcium citrate chews and similar products must ensure that their claims align with consumer expectations.