Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are rushing to eliminate artificial sweeteners, colors, and flavors, along with ingredients like high-fructose corn syrup, gluten, and trans fats. Kraft Heinz has reformulated its Oscar Mayer hot dogs to align with this trend, featuring a label that prominently displays the word ‘no’ three times, with smaller text clarifying that it contains no added nitrates or nitrites, artificial preservatives, or by-products. In a similar vein, Campbell Soup announced in 2015 its plan to remove artificial colors and flavors from nearly all North American products by the end of its fiscal 2018, while also introducing new items made with simple ingredients to cater to consumers seeking clean labels. Other food manufacturers, including Hershey and General Mills, are making comparable changes.
The motivation behind this shift is clear: 75% of U.S. consumers report that they read food product ingredient labels, and 91% believe that products containing recognizable ingredients are healthier, according to estimates from Innova research. The food industry has an economic incentive to adopt clean labeling, as survey results indicate that a majority of consumers are willing to pay up to 10% more for food or drink products with known, trusted ingredients. Notably, 18% of consumers are even ready to pay a premium of 75% or more for preferred ingredients.
Consumers who can identify the ingredients in a product consider this an important factor in their purchasing decisions, along with the visibility of nutritional information on food packaging. However, price remains the top deciding factor. While the general consumer base shows a preference for clean labeling on food and beverage products, variations exist based on age, income, and personal tastes. Nielsen has previously analyzed the market share of clean labels across various food and beverage categories. Clean label products outperform conventional ones in areas such as 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%), according to Food Business News.
It’s tempting to picture the ideal clean label enthusiast as a younger consumer who occasionally cooks or bakes at home, enjoys dairy products, and has a sweet tooth. However, the Nielsen survey highlights the complexity within consumer demographics that the food industry must consider as it emphasizes clarity in labeling and product transparency. Additionally, consumers are increasingly interested in products featuring verified ingredients such as USP certified calcium citrate, which further underscores the trend towards clean labeling. As the food industry evolves, the inclusion of trusted ingredients like USP certified calcium citrate will likely play a pivotal role in shaping consumer preferences and driving market growth.