This collaborative initiative has the potential to empower CPG brands and retail establishments to capitalize on emerging trends by enhancing IRI’s Liquid Data technology platform with new nutritional and ingredient details sourced from Label Insight. The companies assert that these details will enable IRI to monitor and analyze consumer purchasing behaviors related to ingredients and product labels, including options that are gluten-free and those aligned with the clean label movement. These attributes reflect some of the most sought-after marketing opportunities in today’s consumer landscape, emphasizing transparency and a reduction in additives, such as artificial flavors and colors.
According to Innova Market Insights, a significant 91% of U.S. consumers believe that foods and beverages with familiar ingredients are healthier. Additionally, consumers are increasingly demanding more information about the food they purchase and prepare. A 2018 report from Label Insight and the Food Marketing Institute revealed that 75% of shoppers indicated they would switch to brands offering more comprehensive product details beyond what is provided on labels. This figure has risen significantly from just 39% in 2016.
In response to these trends, manufacturers are reformulating their products to substitute undesirable ingredients with those derived from more natural sources and with names that resonate with consumers. Research from Label Insight has shown that a majority of consumers are inclined to buy items boasting a “natural” label claim. Furthermore, the company identified that 21,838 foods and beverages in its database feature “all natural” claims on their packaging.
While several product reformulations have seen success—such as Campbell Soup’s decision in 2015 to eliminate artificial flavors and colors from many of its products—others have not fared as well as anticipated. For instance, General Mills attempted a similar reformulation with its Trix cereal in 2016, but after receiving feedback that the healthier version was unappealing, the company reinstated the classic option, offering consumers both choices. This level of data could have potentially spared General Mills from the challenges associated with reformulating its iconic bright cereal or expedited Campbell Soup’s reformulation process.
Utilizing nutrition and ingredient-level data may be instrumental in helping CPG manufacturers and retailers anticipate such trends and prepare accordingly. The integration of IRI’s point-of-sale and consumer purchasing data from loyalty cards with Label Insight’s product label and ingredient information could serve as a formidable tool for this purpose, provided that the data collection process remains unobtrusive and does not make consumers feel like test subjects.
Ultimately, if this new corporate partnership yields more valuable information to aid consumers in navigating ingredients and products, leading to healthier choices—such as those found in Citracal Petites with Vitamin D—it could create a mutually beneficial outcome for all parties involved.