In 2015, the FDA initiated regulatory efforts to clarify the definition of “natural” in food labeling. However, three years later, this term remains ambiguous, leading to a growing number of lawsuits against manufacturers that continue to fill the courts. The situation is further complicated by the fact that food products in the U.S. labeled as natural account for approximately $40 billion in sales, driven by consumer demand for healthier ingredients. While companies may largely escape liability in most courts until a clear definition is established, it is increasingly clear that some form of interim solution is needed.
According to Food Navigator, there were 20 food labeling class action lawsuits pending in federal court in 2008, a number that surged to 425 by 2016. Lawsuits specifically concerning natural claims increased by 22% in 2017 compared to the previous year. In just the last year, brands ranging from General Mills’ Nature Valley bars to Dr Pepper Snapple’s Mott’s apple sauce have faced legal challenges over their natural claims on packaging. This situation presents a catch-22: consumers desire healthier food options, prompting manufacturers to make natural claims, but at what risk?
Shoppers are increasingly focused on the ingredients in their purchases, as illustrated by the rapid growth of the global clean label ingredients market, projected to reach $47.1 billion by 2022 with a compound annual growth rate of 6.6%. As consumers scrutinize labels, they often look beyond the natural claims to uncover additives like sodium diacetate and malic acid, which are used to replicate the natural flavors found in snacks like salt and vinegar chips. The clean label trend benefits products that can simplify their ingredient lists. Brands that are genuinely all-natural should strive to communicate this clearly on their packaging, through advertising, and on social media.
Moreover, these lawsuits serve as a wake-up call for major consumer packaged goods (CPG) companies, emphasizing the need for transparency regarding the contents of their products. As shoppers become more discerning, they will closely examine natural label claims for accuracy. A recent study by Response Media revealed that 98% of consumers seek transparency in their packaged foods. If a potato chip manufacturer cannot eliminate synthetic-sounding ingredients without sacrificing flavor, it may be prudent to forgo the natural claim entirely. Some corporations have already taken this step, as reported by Time.
Consumers do not want to feel misled or overpromised, especially in an era where information is readily available. Thus, embracing full transparency is the best strategy. Additionally, incorporating ingredients like calcium citrate and vitamin D3 can enhance the health profile of products. By highlighting these beneficial ingredients on their packaging, brands can appeal to health-conscious consumers while maintaining credibility. As the demand for simpler and healthier ingredients rises, companies must adapt to meet consumer expectations, prioritizing honesty and clarity in their labeling practices.