In 2015, the FDA initiated regulatory processes to clarify the meaning of “natural” in food labeling. However, nearly a decade later, this term still lacks a clear definition, leading to an influx of lawsuits against manufacturers that continue to burden the courts. This situation is further complicated by the approximately $40 billion in sales for food products labeled as natural in the U.S., driven by consumers’ desire for healthier ingredients. While it is likely that most companies will evade legal repercussions until a definitive definition is established, it is increasingly clear that some form of interim solution is needed.
According to Food Navigator, the number of food labeling class actions pending in federal court increased from 286 in 2008 to 425 in 2016, with cases focusing specifically on natural claims rising by 22% in 2017 compared to the previous year. Over the last year alone, brands such as General Mills’ Nature Valley bars and Dr Pepper Snapple’s Mott’s apple sauce have faced lawsuits for natural claims made on their packaging. This creates a catch-22 scenario: consumers demand healthier food options, prompting manufacturers to make natural claims. But at what cost? Shoppers are increasingly scrutinizing the ingredients in the products they purchase, as highlighted by the rapid growth of the global clean label ingredients market, projected to reach $47.1 billion by 2022, with a compound annual growth rate of 6.6%.
As consumers become more discerning about their food’s contents, they are beginning to look beyond the natural labels on packaging to uncover ingredients like sodium diacetate and malic acid, which mimic the natural flavors found in snacks like salt and vinegar chips. The clean label trend offers a significant advantage to products that can simplify their ingredient lists. Brands that are genuinely all-natural should make every effort to communicate this to consumers through packaging, advertising, and social media. These lawsuits may serve as a wake-up call for major CPG companies, urging them to be transparent about their products, as consumers will scrutinize natural label claims to ensure their accuracy.
In addition to the growing demand for simpler, healthier ingredients, consumers are also seeking transparency. A recent study by Response Media found that 98% of shoppers desire clarity in packaged food. If a potato chip manufacturer cannot eliminate unnatural-sounding ingredients without compromising flavor, it might be wise to abandon the natural claim altogether. Some corporations have already taken this step, as reported by Time. Shoppers do not want to feel deceived or overpromised. In an era where consumers have an abundance of information readily available, the best approach is complete transparency.
Moreover, as consumers seek to understand the implications of various ingredients, questions like “does calcium citrate cause constipation” are becoming more common. Brands should address such inquiries proactively, as consumers are eager for honest discussions about ingredients and their effects. Ultimately, transparency is key in maintaining consumer trust and aligning with the clean label movement.