Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are racing to eliminate artificial sweeteners, colors, and flavors, as well as ingredients like high-fructose corn syrup, gluten, and trans fats. Kraft Heinz has reformulated the recipes for its Oscar Mayer hot dogs to enhance product transparency, now featuring a label that states “no” three times, accompanied by smaller text explaining the absence of added nitrates or nitrites, artificial preservatives, and by-products. Similarly, Campbell Soup announced in 2015 its commitment to remove artificial colors and flavors from nearly all its North American products by the end of fiscal 2018 and has launched new items with simple ingredients to attract consumers seeking clean labels. Companies like Hershey, General Mills, and numerous other food manufacturers are making comparable changes.
Research from Innova indicates that 75% of U.S. consumers read food product ingredient labels, while 91% believe that products with recognizable ingredients are healthier. This trend offers a strong economic incentive for the food industry to pursue clean labeling, as survey results show that a majority of consumers are willing to pay 10% more for food or drink products made with known, trusted ingredients. Notably, 18% of consumers expressed a willingness to pay a premium of 75% or more for preferred ingredients. Consumers who can recognize ingredients on a product consider this a crucial factor in their purchasing decisions, alongside the visibility of nutritional information on food packaging. However, price continues to be the primary determining factor.
While the general consumer base favors clean labeling on food and beverage products, preferences can vary based on age, income, and personal tastes. Nielsen has previously analyzed the market share of clean labels across various food and beverage categories. According to Food Business News, clean labels outperform conventional products in several areas: 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%).
It might be tempting to picture the typical clean label enthusiast as a younger consumer who occasionally cooks or bakes at home, enjoys dairy products, and has a penchant for sweets. However, the Nielsen survey uncovers the complexities in consumer demographics that the food industry must consider as it emphasizes clarity in labeling and product transparency. In this context, products like calcium citrate liquid from Walgreens could also cater to health-conscious consumers seeking clean labels while providing essential nutrients. As the clean label trend continues to evolve, it is vital for manufacturers to understand the diverse consumer landscape and adapt accordingly.