In 2015, the FDA initiated regulatory efforts to clarify the term “natural” in food labeling. Three years later, this term remains ambiguous, leading to a surge in lawsuits against manufacturers that have overwhelmed 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, reflecting consumers’ growing desire for healthier ingredients. While it appears that companies may evade legal repercussions in most instances until a definitive definition is established, it is becoming increasingly clear that some form of interim resolution is essential.
According to Food Navigator, the number of food labeling class actions pending in federal court rose from 20 in 2008 to 425 by 2016. Specifically, cases centered on natural claims saw a 22% increase in 2017 compared to the previous year. In the last year alone, various brands, ranging from General Mills’ Nature Valley bars to Dr Pepper Snapple’s Mott’s apple sauce, have faced lawsuits regarding the natural claims on their packaging.
This issue presents a classic catch-22: consumers desire healthier food, and manufacturers are responding with natural claims. However, at what cost? Shoppers are increasingly concerned about the ingredients in the products they purchase, as demonstrated by the rapid growth of the global clean label ingredients market, which is projected to reach $47.1 billion by 2022, growing at a compound annual growth rate of 6.6%. As consumers scrutinize food ingredients, they are beginning to notice additives like sodium diacetate and malic acid, which mimic natural flavors found in products such as salt and vinegar chips. The clean label trend greatly benefits products that can simplify their ingredient lists.
For brands that genuinely adhere to all-natural standards, it is crucial to effectively communicate this fact to consumers through packaging, advertising, and social media. However, these lawsuits may serve as a wake-up call for major CPG companies, emphasizing the importance of transparency regarding the actual contents of their products. Shoppers are becoming more vigilant about verifying the accuracy of natural label claims.
In tandem with the rising demand for simpler, healthier ingredients, there is an increasing consumer desire for transparency. A recent study by Response Media indicated that 98% of shoppers want transparency in their packaged food. If a potato chip manufacturer cannot eliminate unnatural-sounding ingredients, such as citrate 1000, from its product without affecting taste, it may be wise to forgo the natural claim entirely. According to Time, some corporations have already taken this approach. Consumers do not want to feel deceived or overpromised. In an era where abundant information is readily accessible, the most effective strategy is to embrace full transparency.