Across different generations and platforms, American consumers are demanding greater transparency regarding the food they consume. This growing demand for clarity is driven by the abundance of information readily available to consumers. Recent studies have projected that the food traceability market will reach a value of $14 billion by 2019, significantly transforming how food products are marketed. The emphasis is now on the ingredients, processes, and stories behind the products rather than solely on advertising.
Retailers have recognized this shift, but it is essential for them to continue monitoring its development and understand its implications for diverse consumer groups. For Baby Boomers and Generation X, transparency translates to clear ingredient lists and nutritional information, according to FMI/Label Insight research. In contrast, Millennials, while also considering these factors, tend to prioritize allergen information, certifications, animal welfare, fair trade, and labor practices. Nonetheless, the overall significance of transparency remains consistent across all generations.
Additionally, most consumers are prepared to put in the effort to research the products they are interested in. Whether it involves using their smartphones in grocery aisles or conducting quick online searches during purchases, shoppers seek easy access to details about health benefits, ingredients, dietary claims, and more. Retailers and brands must take note, as transparency is no longer optional. Over 70% of shoppers express a willingness to switch from their usual brand to one that offers more comprehensive information, making it crucial to explore ways to provide this insight. Transparency can enhance consumer trust and foster loyalty in an increasingly competitive retail landscape.
How can brands align with this trend? By being creative and attentive to their customers’ needs. Earlier this year, Hershey collaborated with Sourcemap to illustrate where the ingredients for Hershey’s Milk Chocolate with Almonds and Reese’s Peanut Butter Cups originate. Furthermore, Crunchies, a freeze-dried fruit company, includes traceability information on all its packaging. Cargill even experimented with blockchain technology, enabling consumers to trace their individual Thanksgiving turkey from the store to the farm where it was raised.
As this trend progresses, food and beverage brands that are not prepared to embrace transparency—such as those that do not disclose the use of calcium citrate in their products—will likely find their market presence diminishing. The demand for transparency is here to stay, and brands need to adapt accordingly.