TODAY’s consumers are concerned about the effects of food on their health and wellbeing. As a result, products that are natural, or contain fewer or no artificial additives, are rapidly growing in demand.
As they become more informed about their food, consumers demand food manufacturers be more transparent about what ingredients go into their products, where these come from, and how the product was made. Fewer artificial ingredients and additives will used in food and beverage – this will become the new normal. Going into 2017, the industry will experience a fundamental shift toward using more natural ingredients.
In a survey conducted by MMR Research Worldwide for Ingredion, consumers in Japan, China and Australia revealed how influential label claims can be, and what ingredients are considered the most recognizable. Respondents surveyed have stated that “Natural” is the top claim that would make them consider switching from their current brand, and up to 80% of respondents have stated that on-pack claims relating to “no additives” or “no artificial ingredients” are very important.
How manufacturers are responding
Leading manufacturers have already committed to reformulating products in key brands to clean label, with a survey by Ingredion showing that 89% of global manufacturers regard clean and simple labelling as an important priority when reformulating products, and prioritized this above adding positive nutrition such as including fibre or vitamins.
Across several main food categories, 57% of manufacturers worldwide say their current portfolios are already clean label, 69% have reformulated their products in the past two years for clean label and 81% expect to do so over the next two years. The amount of investment and progress that leading manufacturers have made to satisfy the demand for clean label products shows that clean label is more than a passing trend, it’s the new benchmark.
A global study conducted by market research institute TNS shows that 60% of people worldwide want products to be free from synthetic colors. In response, major manufacturers have launched natural coloring alternatives produced exclusively from fruits, vegetables and edible plants. They have also developed replacements for carmine, which is a chemically processed, cochineal insect colouring.
A leading global fast-food chain also tested a new clean label version of its chicken nuggets, trials launched in early March over a hundred of its restaurants. The new recipe contains ingredients such as lemon juice solids and rice starch which are more recognisable to consumers. It is also free from artificial preservatives, flavors and colors.
Innovations for meat preservation have also led to the introduction of natural solutions made from acerola powder and onion extract, preventing color degradation in chilled meat products. This allows manufacturers to tap into the “all natural” and “no artificial preservatives” positioning and also extends the shelf life of the products, leading to less food waste.
Chong Hui Cheng, Marketing Manager, Wholesome, Ingredion Asia Pacific
What’s next after clean labelling
Stepping into 2017, there is an expected increase in manufacturers reformulating their key products to become clean label as the trend continues to evolve over time. Building on the demand for more natural ingredients, there is growing consumer pressure for increased transparency around processing and ingredient sourcing, as consumers want to be more informed about their food. This is important to note for manufacturers, as becoming more transparent about what goes into products allows them to build trust with their increasingly curious and informed consumers. Additionally, simple labelling is an emerging trend. Simple labelling is where the ingredient labels are short and easy to understand, with ingredients that are trusted, made with processing techniques that consumers understand. Because simple products contain naturally sourced ingredients as well as a shorter ingredient list, consumers are willing to accept a degree of trade off when it comes to quality, such as a shorter shelf life, less vivid appearance, etc.
Given the sheer amount of activity underway within the industry and the clear consumer pull, going clean label will no longer be seen as a differentiator for manufacturers, but more crucially be considered as a qualifier for consumers making a purchase decision. Manufacturers that are not already reformulating run the risk of losing out to competing products that are cleaner or more natural, in the very near future.
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