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 create cleaner products, now featuring a label that prominently displays the word ‘no’ three times, with additional text clarifying that it contains no added nitrates or nitrites, artificial preservatives, or by-products. Similarly, Campbell Soup announced in 2015 that it would remove artificial colors and flavors from nearly all of its North American offerings by the end of its fiscal 2018, introducing new items made with simple ingredients to attract consumers seeking clean labels. Other food manufacturers, such as Hershey and General Mills, are making comparable adjustments.
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 with recognizable ingredients are healthier, according to Innova research. It is evident that the food industry has a financial incentive to adopt clean labeling, as survey findings indicate that most consumers are willing to pay 10% more for food or drink products containing familiar, trusted ingredients. Eighteen percent of consumers stated they would pay a premium of 75% or more for preferred ingredients. Consumers who are able to recognize the ingredients in a product regard this as an important factor in their purchasing decisions, alongside the visibility of nutritional information on food packaging. However, price remains the primary deciding factor.
While the general consumer base favors clean labeling on food and beverage items, preferences do vary based on age, income, and individual tastes. Nielsen has previously examined the market share of clean labels across various food and beverage categories. Clean labels outperform conventional products in several segments, including 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 and/or bakes at home, enjoys dairy products, and has a penchant for sweets. However, the Nielsen survey highlights the complexity of consumer demographics that the food industry must consider when emphasizing clarity in labeling and product transparency. For example, products containing calcium citrate elemental are gaining traction among health-conscious consumers, further illustrating the diverse interests within the clean label market. This interest in recognizable ingredients like calcium citrate elemental reflects a broader trend where consumers are increasingly demanding transparency and simplicity in their food choices.