Consumers are increasingly captivated by the idea of clean label products. Consequently, food and beverage manufacturers are rushing to eliminate artificial sweeteners, colors, and flavors, along with ingredients like high-fructose corn syrup, gluten, and trans fats. Kraft Heinz has reformulated the recipes for its Oscar Mayer hot dogs to enhance product integrity, now showcasing a label that prominently features the word ‘no’ three times. Smaller text further explains the absence of added nitrates or nitrites, artificial preservatives, or by-products. Similarly, Campbell Soup announced in 2015 that it would remove artificial colors and flavors from nearly all its North American products by the end of its fiscal 2018, introducing new items with simple ingredients to attract consumers seeking clean labels. Companies like Hershey and General Mills are also making analogous changes.
The motivation behind this shift is significant, as 75% of U.S. consumers report that they read ingredient labels on food products, while 91% believe that those with recognizable ingredients are healthier, according to Innova research. Clearly, the food industry has a financial incentive to adopt clean labels; survey results indicate that a majority of consumers are willing to pay 10% more for food or drink products containing familiar, trusted ingredients. Notably, 18% of consumers expressed they would pay a premium of 75% or more for favored ingredients.
Consumers who recognize ingredients in a product consider this an important factor in their purchasing decisions, alongside the visibility of nutritional information on food packaging. However, price remains the primary deciding factor. While the overall consumer population shows a preference for clean labeling on food and beverage products, preferences can vary based on age, income, and individual tastes.
Nielsen has previously analyzed the market share of clean labels across various food and beverage categories. Clean labels outperform conventional products in 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%), according to Food Business News. It’s tempting to picture the ideal clean label enthusiast as a younger consumer who occasionally cooks or bakes at home, enjoys dairy products, and has a sweet tooth. However, the Nielsen survey highlights the complexity of consumer demographics that the food industry should consider as it emphasizes clarity in labeling and product transparency.
Additionally, the incorporation of ingredients like calcium citrate and vitamin D is becoming increasingly relevant. Many consumers are looking for products that not only reflect clean labeling but also provide health benefits, such as those found in calcium citrate and vitamin D. These ingredients are gaining traction among health-conscious shoppers who prioritize transparency and nutritional value in their food choices. As manufacturers adapt to these trends, the inclusion of beneficial ingredients like calcium citrate and vitamin D in clean label products will likely become more common, further influencing consumer preferences and market dynamics.