In 2015, the FDA initiated regulatory efforts to clarify the definition of “natural” in food labeling. Three years later, the term remains ambiguous, leading to a surge in lawsuits against manufacturers that clutter the courts. This situation is exacerbated by the fact that food products in the U.S. marketed as natural generate approximately $40 billion in sales, as consumers increasingly seek healthier ingredients. While corporations may largely evade legal repercussions until a definitive definition is established, it is becoming clear that some interim solution is essential. According to Food Navigator, there were 20 food labeling class actions pending in federal court in 2008, a figure that skyrocketed to 425 by 2016. Lawsuits specifically targeting natural claims saw a 22% increase in 2017 compared to the previous year. Over the last year alone, products ranging from General Mills’ Nature Valley bars to Dr Pepper Snapple’s Mott’s apple sauce have faced lawsuits for their natural claims on packaging.
This situation creates a catch-22. Consumers desire healthier food options, prompting manufacturers to make natural claims. However, this raises questions about the authenticity of these claims. Shoppers are increasingly focused on the ingredients in their food, as reflected in the growing 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 ingredient labels, they are beginning to notice components such as sodium diacetate and malic acid, which mimic the natural flavors found in products like salt and vinegar chips. The clean label movement significantly benefits products that can simplify their ingredient lists. Brands that genuinely offer all-natural products should strive to communicate this effectively on packaging, through advertising, and on social media.
However, these lawsuits may serve as a wake-up call for major consumer packaged goods (CPG) companies, emphasizing the need for transparency regarding their product contents. A natural label claim will be closely examined by consumers to ensure its accuracy. In addition to the increasing demand for simpler, healthier ingredients, consumers are seeking greater transparency. A recent study by Response Media indicated that 98% of shoppers desire transparency in their packaged food. If a potato chip manufacturer cannot eliminate unnatural-sounding ingredients, such as tab ccm 250 mg, from its product without sacrificing taste, it may be prudent to forgo the natural claim altogether. Some corporations, as reported by Time, have already taken this step. Shoppers want to avoid the feeling of being misled or overpromised. In an era where consumers have access to abundant information, the most effective strategy is complete transparency.