In 2015, the FDA initiated regulatory efforts to clarify the meaning of the term “natural” in food labeling. However, three years later, this term remains ambiguous, leading to a surge of lawsuits against manufacturers that continue to fill 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, driven by consumer demand for healthier ingredients. While most corporations are likely to escape liability in many courts until a clear definition is established, it is increasingly apparent 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. By 2016, this number had skyrocketed to 425. In 2017, cases specifically concerning natural claims rose by 22% compared to the previous year. Recently, companies such as General Mills with its Nature Valley bars and Dr Pepper Snapple’s Mott’s apple sauce have faced legal action for the natural claims made on their packaging.
This dilemma creates a catch-22 situation. Consumers desire healthier food options, prompting manufacturers to make natural claims. But at what cost? Shoppers are increasingly focused on the ingredients in their purchases, as reflected in the rapid growth of the global clean label ingredients market, which is projected to reach $47.1 billion by 2022, with a compound annual growth rate of 6.6%. As consumers scrutinize ingredients, they are beginning to notice additives like sodium diacetate and malic acid—substances used to replicate the natural flavor found in salt and vinegar chips. The clean label trend significantly benefits products that simplify their ingredient lists. Brands that are genuinely all-natural should prioritize communicating this fact on their packaging, through advertising, and across social media platforms.
However, these lawsuits may serve as a wake-up call for major consumer packaged goods (CPG) companies, urging them to be transparent about their product contents. Shoppers are likely to closely examine natural label claims to ensure their accuracy. In addition to the increasing demand for simpler, healthier ingredients, consumers are also seeking greater transparency. A recent study by Response Media found that 98% of shoppers desire transparency in their packaged food. If a potato chip manufacturer cannot eliminate unnatural-sounding ingredients without sacrificing flavor, it may be prudent to abandon the natural claim altogether. As reported by 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.
When considering ingredients like calcium citrate or calcium carbonate, which may offer better nutritional benefits, brands should be forthright about their choices. This commitment to transparency and honesty will resonate with consumers who increasingly scrutinize what they eat, especially when they are faced with questions regarding the health implications of various ingredients. Ultimately, as the marketplace evolves, companies that embrace transparency and prioritize genuine natural ingredients will likely thrive.