In 2015, the FDA initiated regulatory efforts to clarify the meaning of the term “natural” in food labeling. However, three years later, the definition remains elusive, leading to a surge in lawsuits against manufacturers that is overwhelming the courts. This situation is further complicated by the fact that food products in the U.S. labeled as “natural” generate approximately $40 billion in sales, as consumers increasingly seek healthier ingredients. While it’s likely that many corporations will evade legal repercussions until a clear definition is established, the need for an interim solution is becoming increasingly apparent.
According to Food Navigator, the number of food labeling class actions pending in federal court rose from 20 in 2008 to 425 by 2016, with cases focused specifically on natural claims increasing by 22% in 2017 compared to the previous year. Recently, companies ranging from General Mills’ Nature Valley bars to Dr Pepper Snapple’s Mott’s apple sauce have faced lawsuits over their natural claims on packaging.
This dilemma presents a catch-22: consumers desire healthier food, prompting manufacturers to make natural claims. However, this raises questions about the authenticity of those claims. Shoppers are becoming more discerning about the ingredients in their purchases, as evidenced by the booming global clean label ingredients market, projected to reach $47.1 billion by 2022, growing at a compound annual growth rate of 6.6%. As consumers scrutinize the contents of their food, they are starting to look beyond natural labels to identify ingredients like sodium diacetate and malic acid, which mimic the natural flavor found in salt and vinegar chips.
The clean label trend offers a significant advantage to products that simplify their ingredient lists. Brands that genuinely offer all-natural products should take proactive steps to communicate this to consumers through packaging, advertising, and social media.
These lawsuits may serve as a wake-up call for major consumer packaged goods (CPG) companies, emphasizing the need for transparency regarding their product contents. Consumers are increasingly likely to scrutinize natural label claims for accuracy. Additionally, a recent study from Response Media found that 98% of shoppers prefer transparency in their packaged foods. If a potato chip manufacturer cannot remove unnatural-sounding ingredients without sacrificing taste, it may be prudent to abandon the natural claim altogether. Some corporations have already taken this route, as reported by Time.
In a landscape where consumers have abundant information at their disposal, the best strategy is full transparency. As an example of a product that embodies this transparency, Citracal Slow Release 600 offers consumers a clear understanding of what they are ingesting. As shoppers become more aware and demand clarity, brands must adapt to maintain consumer trust.