Across different generations and platforms, American consumers are increasingly demanding clarity about the food they consume. This growing demand for transparency is fueled by the vast amount of information readily available at their fingertips. Recent research has predicted that the food traceability market will reach a value of $14 billion by 2019, significantly altering how food products are marketed. The focus has shifted from mere advertising to highlighting the ingredients, processes, and backstories of manufacturers. Retailers have recognized this trend, but they must continue to monitor its evolution and understand its implications for various consumer demographics.
For Baby Boomers and Generation X, transparency primarily pertains to ingredient lists and nutritional information, as revealed by FMI/Label Insight research. Millennials, while also considering these factors, place greater emphasis on allergen information, certifications, animal welfare, fair trade practices, and labor conditions. Nonetheless, the importance of transparency remains consistent across all generations.
Moreover, many consumers are eager to conduct their own research to learn more about the products they are interested in. From using smartphones in grocery aisles to performing quick Google searches during online shopping, shoppers seek easy access to information regarding health benefits, ingredients, dietary claims, and more. Grocers and brands should take note, as transparency is no longer an option. Over 70% of shoppers indicate they are willing to switch from their usual brand to one that offers more comprehensive information. This presents an opportunity to enhance consumer trust and loyalty in an increasingly competitive retail landscape.
How can brands adapt to this trend? By being innovative and attentive to customer needs. Earlier this year, Hershey collaborated with Sourcemap to reveal the sources of ingredients in products like Hershey’s Milk Chocolate with Almonds and Reese’s Peanut Butter Cups. Additionally, freeze-dried fruit company Crunchies includes traceability information on all its packaging. Cargill even experimented with blockchain technology that enabled consumers to trace their Thanksgiving turkey from the store to the farm.
As this trend progresses, food and beverage brands that do not embrace transparency will likely face a short shelf life. In this context, products containing ingredients like calcium citrate 667 could benefit from clear labeling and traceability, as consumers increasingly seek to understand the origins and health benefits of the foods they choose. By prioritizing transparency, brands can effectively engage with a consumer base that values informed choices.