Revamping ingredient lists has shifted from being an exception to a norm in consumer expectations. A recent survey by Innova reveals that 91% of U.S. consumers perceive food and beverage options with recognizable ingredients as healthier. Consequently, there is a growing demand for products to be reformulated to eliminate additives and synthetic ingredients, favoring those with recognizable names and minimal processing. This shift has prompted numerous manufacturers to reinvent their original products while maintaining taste, appearance, and mouthfeel. As a result, clean label products have become widely available in grocery stores across the country.
Clean labels have become so prevalent that experts argue we are now entering the “Clean Label 2.0” phase. In this new era, the rapid increase of clean labels makes it more challenging for food and beverage companies offering healthier options to differentiate themselves. This raises questions about the future of clean labels: Will they become even cleaner? Will the movement lose momentum? Or will consumers settle into the new established norm?
Analysts suggest that the answer leans towards an increased emphasis on clean labels. Alison Borgmeyer, a dietitian and director at Ketchum’s Cultivate, mentioned to Food Dive that clean label initiatives are expected to grow significantly, especially with the rise of specialty diets like keto and gluten-free, which require consumers to limit their ingredient intake. This trend is supported by The Consumer Goods Forum, reporting that food companies improved the health profiles of approximately 180,000 products in 2016, a notable increase of over 100,000 items from the previous year.
Manufacturers are particularly focusing on staple items such as bread, tortillas, and crackers, as clean label consumers seek everyday products to stock their shelves. Dairy products, in particular, are experiencing the fastest transformation in their ingredient lists. Statista indicated that in 2017, clean label milk and dairy alternatives made up 90% of sales in that category.
However, one significant exception exists in the realm of treats. While there is a strong push for clean labels across various segments, Kantha Shelke, a principal at food science and research firm Corvus Blue, points out that indulgent categories such as unique snacks, sweets, ice cream, and alcoholic beverages have been slower to adopt clean label practices. She noted that even enthusiasts of clean labels do not seem to mind synthetic ingredients in their favorite indulgences. Nonetheless, brands like Halo Top and Amy’s Kitchen chocolates are signaling a desire to integrate clean label standards into the snack and treat market. Major CPG companies are also taking action, with Nestlé pledging to eliminate artificial flavors and colors from its chocolate products and Hershey prioritizing simple ingredients and transparency.
Despite these developments, Shelke observes that the overall segment has been hesitant to embrace clean labels because treats are often perceived as inherently less clean. Tom Spier, founder of Boulder Food Group, argues that significant changes are already happening on the indulgent side with products like Halo Top, as well as brands like Ben & Jerry’s and Häagen-Dazs, which have made strides in sustainability and ingredient transparency.
Sugar remains a contentious issue for many manufacturers and consumers. Spier highlighted sugar as a key area for repositioning treats within the clean label framework. He noted that simply swapping one type of sugar for another may not yield much health benefit; however, utilizing alternative sweeteners like monk fruit could lead to cleaner products.
According to Statista, sugar and sweeteners represented the second-largest category for clean label claims, accounting for 83% of market share in 2017. However, transitioning to cleaner alternatives requires companies to adjust their product offerings on a large scale, which can be a complex and time-consuming process, as Spier explains.
Private labels have emerged as a stronghold for the large-scale production and distribution of clean products. Retailers with their own manufacturing capabilities can quickly respond to consumer demands, which often shift with trends. Private label brands have introduced “not-considered-clean” lists, like Kroger’s Simple Truth line and Hy-Vee’s Clean Honest Ingredients label, which eliminate over 200 artificial ingredients. Whole Foods has also established its 365 Everyday Value brand, banning high-fructose corn syrup, hydrogenated fats, and various artificial additives.
Borgmeyer emphasized that private label brands are well-positioned to lead clean label initiatives due to their close connection to customers and their flexibility in product development. They can experiment and implement changes more rapidly than larger manufacturers, who tend to be more cautious due to their established business models.
Consumers are not merely focused on clean labels that indicate food safety; they are increasingly interested in the cleanliness of the entire supply chain. This includes seeking products with environmentally friendly packaging and ethical sourcing claims. Innova Insights has tracked a rise in consumer interest in clean supply chains, noting significant growth in labels containing “environmentally friendly” and “animal welfare” claims.
The clean label movement has evolved from being merely about readability to encouraging consumers to think critically about their food choices and the types of production they wish to support. Achieving this level of transparency is essential for consumers to find what they are looking for, as Spier argues.
However, achieving widespread transparency will be a gradual process. Companies must invest time and effort into understanding customer needs through a trial-and-error approach. Borgmeyer noted that with numerous options for cleaning up supply chains, companies must also be financially prudent in their choices. For many established brands, changing supply chains and ingredient lists can be challenging due to existing logistical and pricing structures.
Frozen food, in particular, represents a segment ripe for transformation, but it faces barriers due to entrenched supply chain methods that complicate recipe alterations. The shift from artificial to natural ingredients can significantly increase costs, posing a risk if consumers do not respond positively.
In 2014, over 60% of U.S. consumers cited a lack of artificial colors and flavors as crucial in their purchasing decisions. However, General Mills faced backlash when it replaced artificial colorings with natural options in Trix cereal, resulting in a return to the original recipe.
Ultimately, Borgmeyer questioned whether it’s worth making such changes when competing against brands that offer discounted products. The food industry is currently weighing these considerations as they navigate the evolving landscape of clean labels.
Additionally, the incorporation of ferrous calcium citrate and folic acid oral drops uses is becoming increasingly relevant in discussions about nutritional transparency and consumer health. As consumers are more informed about their choices, the demand for products containing these ingredients could rise, reflecting a broader trend towards enhanced nutritional offerings that align with clean label principles.