Consumers Crave ‘Clean’: Labeling Products as Free of Unnatural Ingredients can Lend a Marketing Edge

I’m a label reader. Being in this industry, one almost has to be. As I took my can of tuna down to the cafeteria for lunch, I couldn’t help but notice the can’s proud declaration that the harvested chicken of the sea, was, in fact GMO-free. Now I don’t know about you, but that proclamation caught my attention, since genetically modifying an ocean full of tuna creates all sorts of scientific questions and logistical challenges. Nonetheless, the producer took advantage of the marketing opportunity to appeal to the clean label reader. For extra measure, it was comforting to know that it was also gluten-free. 

Clean label has gone beyond a trend. It is now an expectation. In a sea of processed foods and supplements, more and more producers position their products—and align their marketing messages—as “clean label products”. It’s all driven by consumer demand and this compels producers to seek better ingredients that evoke a natural and organic flair. In a recent study, 86% of consumers have higher trust in brands that incorporate easy- to-understand ingredients on their labels. Excessive processing connotes an unhealthy lifestyle. No one wants to admit to an unhealthy lifestyle, so clean and simple products lead the way. Panera Bread was an early adopter of this strategy with a goal to remove all artificial colors and flavors by 2016. Institutional food producers Kellogg’s and Campbell’s followed suit with similar goals to be implemented by 2018. One of my favorite sayings in business is that every decision in business is a business decision. In other words, all decisions need to drive the bottom line. The industry will respond to consumers’ demands to drive sales and create profits. 

Consumers’ increasing label consciousness continues to evolve and smart dosage form producers should promote naturally occurring ingredients at every opportunity. This demand shows no signs of slowing down. Calls for reduced processing and more naturally presented products started in Europe and North America, but demand in the Asia-Pacific region is growing rapidly. What started as low fat, low calorie, or low carb has evolved to “natural”, “organic”, and GMO free. “Derived” has replaced “processed” or “fortified”. The label and marketing verbiage evolves with the science. Products that displayed a laundry list of ingredients now pride themselves on the ever- increasing list of what is not in the product. 

COVID-19 exacerbated the issue with more attention placed on healthier choices in an effort to avert the modern plague. The presumption is if you are eating healthy, you ARE healthy, so you are less likely to contract an illness. People focused on what they consumed in an all-out war to remain healthy in the midst of the global pandemic. According to the International Food Information Council, COVID-19 influenced 85% of consumer’s food and preparation decisions. That is an extremely high influencing percentage. With many restaurants shut down, the decision on how and what to consume landed squarely in the consumer’s hands. If you are responsible for making your own meals, you will pay closer attention to what’s in them. Even more scrutiny was placed on children locked out of school and now eating at home. I speculate that more broccoli was forced upon children in recent history than I care to imagine.

Health-conscious consumers are among the most loyal customers and likely to be repeat buyers. Once they identify with the quality and natural aspects of a selected product, they return to those brands based on trust. Health-conscious consumers are also the most likely to take nutritional supplements. The list of things not considered healthy continues to grow. It may not be unusual at this point to see more of what is NOT in a product rather than what IS in the product. Starch-free, sugar- free, lactose-free, gluten-free, preservative-free, antibiotic-free, high fructose corn syrup-free, no artificial colors, low-sodium, and a host of other “no’s” are taking up an increasing amount of label space. Again, consumers want it. They are not really responding to a “clean label” as much as they are responding to what is not in there, while appealing to the perception of natural and healthy. 

Consumers now expect authenticity. From melamine scares, to fast food “pink slime”, and other food scandals, ingredients garner more attention than ever before. The demand becomes self-fulfilling. With more attention on ingredients, producers and their researchers are more likely to pursue studies to capitalize in an effort to keep foods and supplements even more basic. Likewise, academia and governments are funding more studies to examine issues and find methods. Their goal is to maintain the integrity of consumables while ensuring their safety, preservation, and appearance. 

Sustainability and environmental awareness are also grabbing label attention. “Clean label” may evolve further to “green label”, considering the focus on renewable resources. Whether driven by vegan health or sustainable raw materials, plant- based protein supplements gained considerable strength over animal-based protein. While lower in essential amino acid content, plant-based proteins have lower caloric content and higher fiber. Clean label consumers are also paying attention to green label considerations as a part of the overall package. 

At the end of the day, consumers want more recognizable ingredients. Anything provoking memories of a freshman chemistry class will immediately garner the negative attention of the clean label consumer. If it sounds like a chemical, it will be categorized as such, even if it is a commonly used and widely accepted ingredient. This results in many producers altering their labeling strategy. Instead of employing terms like “magnesium stearate” on a label, producers are opting for “vegetable stearate”. Same material, different perception. Colorants have had particular challenges and producers are substituting traditional, synthetic materials for naturally derived extracts from fruits, vegetables, or other organic sources. 

The clean label ingredient market is growing at 6.75% CAGR, so producers are forced to react. Simplifying formulas and processing steps to their basics always made economic sense, but strict forethought toward clean labeling became paramount. Producers are throwing out synthetic and chemically sounding ingredients and moving labeling strategy to the forefront. With the spotlight focused on clean label expectations, market intelligence companies have more market studies and reports available indicating that producers are not only thinking about their label strategically, but willing to invest in it. 

As the market grows, so do the challenges. First-line formulation choices are slowly being eliminated, creating production efficiency issues for producers. Producers also have to formulate to the lowest common denominator. As consumers get a sour taste in their mouth for selective ingredients— and certain countries’ regulatory authorities limit ingredient concentrations—producers have to develop formulas that meet both the consumer and regulatory standards. Titanium dioxide is a great example. France banned its use in food applications beginning January 1, 2020. This action affected nutritional supplements, but pharmaceutical producers are preemptively reformulating titanium dioxide out as a whitening agent. Titanium dioxide is a great whitener, so formulators are struggling for an efficient replacement. The challenge for producers is making robust formulations in the absence of traditionally used and effective ingredients that are now shunned by the consumer. 

Aside from formulation and production issues, the supply chain for natural and organic ingredients is far more complex. What is sustainable and available today may not be tomorrow. Weather, crop failures and other natural phenomena affect availability and pricing. Non-GMO products are in limited supply. The agricultural producers who moved to GMO products did so to boost productivity and yields. While some global regulatory authorities may limit the use and type of pesticides, herbicides and fertilizers in non-GMO applications, not all do. It is entirely possible for producers to find non-GMO crops treated chemically to affect yields and thereby effectively negating the customer’s expectations for something to be clean and natural. Organic products also come with their share of challenges. In “organic” formulations, all of the ingredients must be organically certified. This certification comes at a high premium and many times, limited availability. Extraction or purification methods can quickly negate an organic certification, resulting in further manufacturing challenges for producers as they seek effective substitutes. 

The beverage and dairy sectors lead the industry’s share of clean-label products. Supplement manufacturers are keenly aware and now employ label strategy as a primary driver.

Awareness among pharmaceutical manufacturers is growing and as more ingredient products come under scrutiny, pharmaceutical companies are more hesitant to use them in product development. If their ultimate goal is patient efficacy, compliance, stability and safety, they will want their customers to be comfortable consuming products in the interest of their health. While a small minority of the population has milk allergies, a large percentage exhibit lactose intolerance. Even given the small amount of lactose traditionally used in pharmaceutical preparations, pharmaceutical producers no longer consider lactose primary in their formulation toolbox. 

Human perceptions will always win over scientific evidence. If customers believe clean label, natural, non-GMO, and organic products are in their best interest, producers will feel the same way and push in that direction. Science will continue to evolve and so will customer perceptions and demands. New trends will emerge and suppliers will demand new ingredients that fulfill a natural status while preserving formulation functionality. I don’t expect my tuna to be genetically modified in the near future, or magically develop a gluten concentration, but in the meantime, I’ll continue to monitor the ingredients I consume on a daily basis. 

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