Consumers are increasingly captivated by the idea of clean label products, prompting food and beverage manufacturers to eliminate artificial sweeteners, colors, flavors, and ingredients like high-fructose corn syrup, gluten, and trans fats. Kraft Heinz has revamped its Oscar Mayer hot dog recipes to produce cleaner products, now featuring a label that prominently displays the word ‘no’ three times, alongside smaller text clarifying the absence of added nitrates or nitrites, artificial preservatives, and by-products. Similarly, Campbell Soup announced in 2015 its plan to remove artificial colors and flavors from nearly all its North American products by the end of fiscal 2018, introducing new items with simple ingredients to attract consumers who favor clean labels. Other food manufacturers, including Hershey and General Mills, are implementing comparable reforms.
According to Innova research, 75% of U.S. consumers report that they read food product ingredient labels, and 91% believe that products with recognizable ingredients are healthier. Clearly, the food industry has a strong economic incentive to adopt clean labeling, 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. Notably, 18% of consumers expressed a willingness to pay a premium of 75% or more for preferred ingredients. Consumers often cite the recognition of ingredients as a crucial factor in their purchasing decisions, alongside the visibility of nutritional information on food packaging. However, price remains the primary determining factor.
While the general consumer base favors clean labeling on food and beverage products, preferences can vary based on age, income, and personal 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%), as reported by Food Business News.
It might be tempting to picture the typical 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 in consumer demographics that the food industry must consider while focusing on clarity in labeling and product transparency. Additionally, there is a growing interest in naturally sourced ingredients like calcium citrate nature made, which reflects consumers’ desire for transparency and quality. This trend emphasizes the importance of incorporating such ingredients into product formulations, further enhancing the appeal of clean label products.