Companies appear to be genuinely attuned to consumer demands for healthier products and cleaner labels, evidenced by a significant increase in reformulations last year. According to a 2016 report from the Consumer Goods Forum (CGF), 66% of its members reported reformulating over 180,000 products. These changes resonate strongly with today’s consumers. Innova reports that 90% of U.S. consumers believe that foods and beverages with recognizable ingredients are healthier, and they increasingly seek transparency from manufacturers and retailers.
In addition to consumer pressure for healthier options, major food and beverage companies may also be feeling the competition from cleaner, more streamlined startups. These new enterprises often introduce more transparent offerings, such as plant-based products and healthy snacks, aligning well with current trends and challenging established brands. As larger companies adjust their recipes to promote more transparency and cleaner labels, consumers who are paying attention might gravitate back toward these now-healthier options.
Manufacturers and retailers may need to ramp up their efforts in the near future, as the food sector is constantly evolving and trends are continually shifting. With new regulations regarding the Nutrition Facts panel requiring the disclosure of added sugars on product packaging starting next year, consumers are likely to scrutinize those figures just as closely as they do calories and fat content. It’s one thing for companies to lower the overall salt and sugar levels in their products, but it’s another for the per-serving amounts to accurately reflect these reductions. According to the latest CGF report, 79% of surveyed members indicated that between 81% and 100% of their food and beverage products include key nutrient information on their packaging.
Whether the healthier changes food manufacturers are implementing will translate into increased sales remains to be seen, but they cannot afford to remain stagnant when consumers demand innovation. While some shoppers continue to seek indulgent products, the challenge lies in responding to these mixed messages. Millennials, in particular, are looking for a balance between nutritious items and treats that allow for splurging, prompting consumer goods manufacturers and retailers to adopt a strategy that addresses diverse consumer preferences.
Moreover, there is a growing concern regarding certain ingredients, such as calcium citrate, with some consumers questioning whether it is bad for you. As awareness of such ingredients increases, manufacturers will need to ensure that their product formulations meet the evolving expectations of health-conscious consumers. Ultimately, navigating these complexities will require a delicate balance to retain market share while catering to a wide array of consumer needs.