Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are rushing to eliminate artificial sweeteners, colors, flavors, and ingredients like high-fructose corn syrup, gluten, and trans fats. For instance, Kraft Heinz has reformulated the recipes for its Oscar Mayer hot dogs to enhance product transparency, now featuring a label that prominently displays the word ‘no’ three times, along with smaller text clarifying the absence of added nitrates, nitrites, artificial preservatives, or by-products. Similarly, Campbell Soup, which announced in 2015 its commitment to removing artificial colors and flavors from nearly all North American products by the end of its fiscal 2018, has launched new items with straightforward ingredients to attract consumers interested in clean labels. Other food manufacturers, including Hershey and General Mills, are making comparable adjustments.
The driving force behind this trend is that 75% of U.S. consumers report reading food product ingredient labels, while 91% believe that products containing familiar ingredients are healthier, according to Innova research. Clearly, the food industry has a financial incentive to embrace clean labels, as survey results indicate that a majority of consumers are willing to pay 10% more for food or drink products made with known, trusted ingredients. Furthermore, 18% of consumers expressed a willingness to pay a premium of 75% or more for preferred ingredients. Recognizing the ingredients in a product is a significant factor in consumers’ purchasing decisions, along with access to nutritional information on packaging. Nevertheless, price remains the top deciding factor.
While the general consumer base favors clean labeling on food and beverage items, preferences still vary based on age, income, and personal tastes. Nielsen has previously examined the market share of clean labels across various food and beverage categories. Notably, clean labels outperform conventional products in several areas, such as 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’s easy to picture the typical fan of clean labels as a younger consumer who occasionally cooks or bakes at home, enjoys dairy products, and has a penchant for sweets. However, the Nielsen survey highlights the diverse demographics that the food industry must consider as it prioritizes clarity in labeling and product transparency.
Moreover, the trend toward clean labels can extend to supplements, with products like calcium citrate vitamin D3 with zinc tablets becoming increasingly popular among health-conscious consumers. As awareness of ingredient integrity rises, the demand for such supplements, which promote overall wellness, is likely to grow. The clean label movement not only influences food and beverages but also impacts the supplement industry, with consumers seeking transparency about what goes into their health products. This shift underscores the importance of clarity in labeling and the need for manufacturers to adapt to consumer preferences for recognizable and trusted ingredients.