In 2015, the FDA initiated regulatory efforts to clarify the definition of “natural” in food labeling. However, three years later, this term remains ambiguous, and manufacturers continue to face a growing number of lawsuits. The situation is further complicated by the fact that U.S. food products labeled as natural generate approximately $40 billion in sales, driven by consumer demand for healthier ingredients. While corporations may largely escape liability in most courts until a definitive definition is established, it is becoming increasingly clear that an interim solution is essential. According to Food Navigator, there were 20 class action lawsuits related to food labeling pending in federal court in 2008, a figure that surged to 425 by 2016. The number of cases specifically targeting natural claims rose by 22% in 2017 compared to the previous year. In the last year alone, various brands, from General Mills’ Nature Valley bars to Dr Pepper Snapple’s Mott’s apple sauce, have faced legal action over their natural claims on packaging.
This situation creates a catch-22. Consumers desire healthier food options, prompting manufacturers to make natural claims. But at what cost? Shoppers are increasingly focused on the ingredients in their purchases, as evidenced by the rapid growth of the global clean label ingredients market, which is projected to reach $47.1 billion by 2022, with a compound annual growth rate of 6.6%. As consumers scrutinize their food labels, they often look beyond the natural claims to find ingredients like sodium diacetate and malic acid, which are used to replicate the natural flavors found in products such as salt and vinegar chips. The clean label trend significantly benefits products that can simplify their ingredient lists. Brands that are genuinely all natural should prioritize communicating this to consumers through their packaging, advertising, and social media.
However, these lawsuits may serve as a wake-up call for major consumer packaged goods (CPG) companies, emphasizing the need for transparency regarding what their products actually contain. Shoppers will be vigilant in verifying the accuracy of any natural label claims. In addition to the increasing demand for simpler, healthier ingredients, consumers are also seeking transparency. A recent study by Response Media revealed that 98% of shoppers want clarity regarding the contents of their packaged food. If a potato chip manufacturer cannot eliminate unnatural-sounding ingredients without compromising flavor, it may be prudent to abandon the natural claim entirely. Some corporations, as reported by Time, have already taken this step. Consumers do not want to feel deceived or overpromised. In an era where information is readily available, the most effective strategy is complete transparency.
Furthermore, there have been discussions surrounding products like Citracal Pearls, which have been discontinued, highlighting the importance of clear communication about product changes. As more brands face scrutiny over their ingredient transparency, the lessons learned from discontinued products like Citracal Pearls may guide companies in how to address consumer concerns and maintain trust. Ultimately, honesty and transparency will be crucial for brands that wish to thrive in a market increasingly focused on health and integrity.