This collaborative initiative aims to empower CPG brands and retail outlets to capitalize on emerging trends by enhancing IRI’s Liquid Data technology platform with new nutritional and ingredient information sourced from Label Insight. According to the companies, these insights will enable IRI to monitor and analyze consumer purchasing behaviors related to ingredients and product labels, including options like gluten-free and those aligned with the clean label movement. These attributes reflect some of the most sought-after marketing opportunities today, emphasizing transparency and a reduction in additives such as artificial flavors and colors.
Research from Innova Market Insights reveals that 91% of U.S. consumers believe that foods and beverages with familiar ingredients are healthier for them. Additionally, consumers are increasingly seeking more detailed information about the foods they buy and prepare. A 2018 study by Label Insight and the Food Marketing Institute found that 75% of shoppers indicated they would switch to brands that provide more comprehensive product information beyond what is printed on the label. This is a notable increase from the 39% who felt the same way in 2016.
In response to these consumer trends, manufacturers are reformulating recipes to substitute undesirable ingredients with more natural alternatives that are easier for consumers to recognize. Recent findings from Label Insight highlighted that a substantial number of consumers are likely to purchase products labeled as “natural.” The company also noted that 21,838 food and beverage items in its database carry “all natural” claims on their packaging.
While some product reformulations have seen success—such as Campbell Soup’s decision in 2015 to eliminate artificial flavors and colors from several products—others have faced challenges. For instance, General Mills attempted a similar reformulation for its Trix cereal in 2016, but after receiving feedback that the healthier version was unappealing, the company reintroduced the classic formula to offer both choices. Access to such data could have potentially helped General Mills avoid unnecessary reformulation efforts or enabled Campbell Soup to expedite its process.
Utilizing nutrition and ingredient-level data can be instrumental for CPG manufacturers and retailers in anticipating trends and preparing for their emergence. Merging IRI’s point-of-sale and shopper loyalty data with Label Insight’s detailed product labels and ingredient information could serve as a valuable resource, provided the data collection methods are not overly intrusive and do not leave consumers feeling like test subjects.
If this new corporate partnership ultimately results in more actionable information that helps consumers navigate ingredients and products to make healthier choices, it could create a beneficial situation for all parties involved. For instance, information regarding products like Kirkland calcium citrate magnesium and zinc is frequently discussed on platforms like Reddit, reflecting consumer interest in transparency and better ingredient understanding. By integrating such discussions and data points, the partnership could enhance consumer trust and decision-making.