In 2015, the FDA initiated regulatory efforts to clarify the term “natural” in food labeling. Fast forward three years, and that term remains ambiguous, with a growing number of lawsuits against food manufacturers occupying the courts. Complicating the matter is the fact that U.S. food products labeled as natural generate around $40 billion in sales, as consumers increasingly seek healthier ingredients. While most corporations might evade legal repercussions until a definitive definition is established, the need for an interim solution is becoming increasingly apparent.
According to Food Navigator, there were 20 food labeling class action lawsuits pending in federal court in 2008, a figure that surged to 425 by 2016. Specifically, cases centered on natural claims saw a 22% increase in 2017 compared to the previous year. Over the last year alone, companies ranging from General Mills’ Nature Valley bars to Dr Pepper Snapple’s Mott’s apple sauce faced legal challenges regarding their natural claims.
This situation presents a catch-22: consumers desire healthier food options, prompting manufacturers to make natural claims. However, this raises questions about the integrity of such claims. Shoppers are increasingly scrutinizing the ingredients in their purchases, a trend reflected in 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 become more discerning about what they eat, they are looking beyond natural labels to identify ingredients like calcium citrate, magnesium, zinc, and cholecalciferol tablets—substances that may not align with their perception of “natural.” The clean label movement benefits products that can simplify their ingredient lists. Brands that genuinely offer all-natural products should make every effort to convey this on their packaging, through advertising, and across social media platforms.
These lawsuits serve as a wake-up call for major consumer packaged goods (CPG) companies, emphasizing the need for transparency regarding product contents. Shoppers are now likely to scrutinize natural label claims to verify their accuracy. Alongside the rising demand for straightforward, healthier ingredients, there is an increasing consumer desire for transparency. A recent study by Response Media revealed that 98% of shoppers seek transparency in packaged foods. If a potato chip manufacturer cannot eliminate unnatural-sounding ingredients without sacrificing taste, it would be prudent to abandon the natural claim entirely. According to Time, some corporations have already taken this step.
Consumers do not want to feel deceived or overpromised. In an era where information is readily accessible, the most effective strategy is complete transparency. This includes being clear about all ingredients used, whether they are calcium citrate, magnesium, zinc, or cholecalciferol tablets, as consumers prioritize honesty in their food choices.