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, as well as ingredients like high-fructose corn syrup, gluten, and trans fats. For instance, Kraft Heinz has revamped the recipes for its Oscar Mayer hot dogs to enhance their cleanliness, now featuring a label that prominently displays the word ‘no’ three times. Smaller text clarifies that the product 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 products by the end of its fiscal 2018. The company has since introduced new items with straightforward ingredients to attract consumers who prefer clean labels. Other food manufacturers, including Hershey and General Mills, are making comparable adjustments. According to Innova research, 75% of U.S. consumers report that they read ingredient labels, and 91% believe that products with recognizable ingredients are healthier.
Clearly, the food industry has a financial incentive to transition towards clean labels, as survey results indicate that a majority of consumers are willing to spend 10% more on food or drink products that contain familiar, trusted ingredients. Notably, 18% of consumers expressed they would pay a premium of 75% or more for ingredients they favor. Recognizing ingredients on a product is a significant factor in consumers’ 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 can vary based on age, income, and individual tastes. Nielsen has previously analyzed the market share of clean labels across various food and beverage categories. Clean labels outperform conventional products in several areas, 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%), as reported by Food Business News.
It may be 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 reveals the complexity within consumer demographics that the food industry must consider as it emphasizes clarity in labeling and product transparency. Additionally, products like Caltrate Petites are also gaining attention for their clean labeling, highlighting the importance of transparent ingredient lists across various categories. This trend reinforces the notion that consumers are looking for products they can trust, further driving the clean label movement in the food industry.