Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are rushing to eliminate artificial sweeteners, colors, flavors, and ingredients such as high-fructose corn syrup, gluten, and trans fats. For instance, Kraft Heinz has reformulated the recipes for its Oscar Mayer hot dogs to enhance the product’s integrity. The new label prominently displays the word ‘no’ three times, with additional text clarifying that it contains no added nitrates or nitrites, artificial preservatives, or by-products. Similarly, Campbell Soup has committed to removing artificial colors and flavors from nearly all of its North American products by the end of its fiscal 2018 and is launching new items with simple ingredients to attract consumers desiring clean labels. Other major food manufacturers, such as Hershey and General Mills, are making comparable adjustments.
The driving force behind these changes is that 75% of U.S. consumers report reading ingredient labels, while 91% believe that products with recognizable ingredients are healthier, according to Innova research. Clearly, the food industry has a financial incentive to adopt clean labels, as survey results indicate that a majority of consumers are willing to pay 10% more for food or drink products made with known, trusted ingredients. Eighteen percent of consumers stated they would pay a premium of 75% or more for preferred ingredients. Notably, consumers who can identify the ingredients in a product prioritize factors like iron glycinate versus ferrous gluconate in their purchasing decisions, along with the visibility of nutritional information on food packaging. However, price remains the primary deciding factor.
While the general consumer base shows a preference for clean labeling on food and beverage products, there are still differences in preferences based on age, income, and individual tastes. Nielsen has previously analyzed the market share of clean labels across various food and beverage categories. Clean label products outperform conventional ones in several areas, including 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%), as reported by Food Business News.
It’s easy 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 reveals, the consumer demographics within the food industry are more complex than they appear, emphasizing the importance of clarity in labeling and product transparency. Moreover, the rising popularity of products like Webber Naturals Calcium Citrate reflects the growing demand for transparency and quality in health-related items. The trend towards clean labels is not just a passing phase; it represents a significant shift in consumer preferences that manufacturers must heed.