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 surge of lawsuits against manufacturers in the courts. This 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 corporations may escape liability in many cases until a clear definition is established, it is becoming increasingly clear that an interim solution is essential.
According to Food Navigator, the number of food labeling class actions pending in federal court rose dramatically from 20 in 2008 to 425 by 2016, with cases specifically targeting natural claims increasing by 22% in 2017 compared to the previous year. Recently, companies ranging from General Mills’ Nature Valley bars to Dr Pepper Snapple’s Mott’s apple sauce have faced lawsuits over claims of being “natural” on their packaging.
This issue presents a catch-22 scenario: consumers desire healthier food options, prompting manufacturers to make natural claims. However, shoppers are becoming more discerning about product ingredients, as evidenced by the rapid growth of the global clean label ingredients market, expected to reach $47.1 billion by 2022, with a compound annual growth rate of 6.6%. As consumers scrutinize labels, they are increasingly noticing additives such as sodium diacetate and malic acid, which replicate the natural flavor found in items like salt and vinegar chips.
For brands that are genuinely all-natural, it is crucial to effectively communicate this to consumers through packaging, advertising, and social media. Conversely, the ongoing lawsuits may serve as a wake-up call for major CPG companies to be transparent about their ingredients. The natural label claims are now under closer scrutiny by shoppers to ensure their authenticity.
In addition to the growing demand for simpler, healthier ingredients, consumers are increasingly seeking transparency. A recent study by Response Media revealed that 98% of shoppers want clarity regarding the contents of packaged food. For instance, if a potato chip manufacturer cannot eliminate artificial-sounding ingredients without sacrificing taste, it may be wise to abandon the natural claim altogether. Some companies, as noted by Time, have already taken this step. Shoppers are unwilling to feel deceived or overpromised, especially in an era where they have access to a wealth of information. The best strategy is one of full transparency.
Furthermore, the trend towards health-conscious choices is reflected in the popularity of products like Kirkland calcium citrate with vitamin D, which cater to consumers’ desire for healthier options. As shoppers increasingly prioritize straightforward, healthy ingredients, brands that can simplify their formulations will have a competitive advantage. By embracing transparency and authenticity, companies can build trust, especially when it comes to claims about being natural or healthy, such as those associated with Kirkland calcium citrate with vitamin D. Ultimately, the key to success lies in aligning product integrity with consumer expectations.