Evolution of clean label expectations: Kerry report outlines consumer demands for nutrition, added functionality and sustainability

16 Oct 2019 --- In a new study evaluating the expectations and opinions of “food at-home and away-from-home,” Ireland-headquartered Kerry Group has completed a survey of 2,100 health-conscious US consumers. The research outlines a prominent shift in common perceptions of the clean label standard. Consumers are now looking beyond clean label status as a filter of unacceptable ingredients and paying closer attention to the nutritional and environmental benefits of clean ingredients. In a crowded marketplace, the report emphasizes the value of reformulation with “real and added-functionality” ingredients.

As has been the case for several years now, clean label continues to be a mainstream trend within food and beverage formulation. Innova Market Insights reports a 13 percent CAGR in global food and beverage launches with a clean label claim (2013 to 2017). Products with this type of positioning accounted for 29 percent of global new food and beverage launches in 2017.

The Kerry survey employed a mix of quantitative and qualitative research techniques to explore consumers’ understanding of clean label, nutrition, health and sustainability aspects, including how specific claims, ingredients and packaging influence their purchasing decisions.

“The findings from this research study is case-in-point of how consumers are constantly evolving in their needs and expectations from food and beverages,” explains Soumya Nair, Director of Marketing Insights at Kerry. “Clean label, once a differentiator and trend, is now a table-stake and an expectation from consumers.”

The white paper is the second iteration of Kerry’s Clean Label study, with emphasis on the evolution of consumer expectations in food and beverages. Kerry’s research focused on how consumer opinions and the industry influence and shape each other, to uncover the future of food and beverages. The first generation of this research, 2017’s Beyond the Label, studied over 700 US consumers who read the product label, nutritional panel and ingredient declaration.

“While the gravity of clean label and its subsequent attributes differ by the food or beverage in focus, its importance among consumers has only been compounding over the years. Today, consumers look at the industry to provide food and beverage solutions that not only consider clean ingredients, but also deliver on inherent nutrition, added functionality and a sustainable footprint without lowering the overall taste experience,” adds Nair.

The findings from the current phase of the research reveals the evolution of clean label and a unique and actionable definition of what consumers expect and desire from food and beverages in the future, Kerry notes. The food and beverage heavyweight measured consumer perception and preference of more than 35 product claims, 77 menu item claims and 164 ingredients across key consumer generations.

“The more we understand consumers’ desires today and in the future, the better we can partner with our customers to embed this knowledge and help them align with their consumers’ expectations,” concludes Nair.

“Consumers expect more than clean label”Kerry notes 49 percent of consumers say there is not enough information on product labels.
Information-rich consumers have started to question the relevance of product claims, certifications and ingredients in order to understand their impact on overall health, Kerry underscores. “As a result, the understanding and relevance of clean label has become more nuanced,” the issued report outlines.

As consumers are setting more educated and intentional health and nutrition goals, they are looking beyond the consideration of the clean label standard as a filter of unacceptable ingredients, and are now more attentive to the added nutritional and functional benefit of those ingredients. Clean label is the foundation and the building block in consumers’ overall expectations from food and beverages, Kerry highlights.

On-pack claims and certifications continue to be quick indicators of “healthy and nutritious” food and beverages. Kerry notes that 49 percent of consumers say there is not enough information on product packaging to help them meet their dietary needs or lifestyle preferences. The study further reveals that 75 percent of consumers are willing to switch from their usual brand to one that provides more in-depth product information beyond what appears on the physical label, growing from 39 percent in 2016.

In the midst of food tribes, diet plans and a growing focus on macro-nutrients, US consumers are learning and forming new opinions on nutrition and its impact on their health. Almost 92 percent of consumers read the nutritional label, higher among Baby Boomers, according to Kerry’s research. The report discloses that 68 percent of consumers who read the nutritional label focus on overall sugar content of the product.

Priorities in clean label expectations may vary according to regional markets, however. In a previous report, Kerry has outlined that by definition, clean eating in the Asia Pacific, the Middle East and Africa (APMEA) region is very different from the West. Notably, this study reports food safety holds greater significance over health and sustainability claims among consumers in this part of the world.

Elimination of negatives
The focus on elimination of negatives (such as sugar, sodium, cholesterol and fat) continues to gain priority, while the focus on addition of positives (such as protein, vitamins and fiber) stays consistent, the study reveals. 

Sugar continues to be a big priority for US consumers, with a focus on both the content of sugar in the product and the “No Added Sugar” claim on the package. However, among younger consumers, the focus is not only on content of sugar but the source of sweeteners as well. Within this space, players have begun to move quickly, with novel sugar reduction strategies coming to the fore.

The report notes that Millennials show a tendency to focus on added nutritional benefits such as protein, vitamins and minerals, while Baby Boomers focus on the elimination of sugar, sodium and fat. 

Taste is still king, while sustainability also reigns supremeConsumers are less willing to trade off taste for health and nutrition.
Taste is a “tablestake,” states Kerry, revealing that 42 of consumers agree that healthy food and drinks tend to be less tasty. With the availability of a range of options, consumers are no longer willing to trade off taste for health and nutrition. In 2017, 57 percent of consumers agreed that nutrition is more important than taste, but only 48 percent of consumers in 2019 agreed. 

Sustainability continues to grow in prominence. The study notes 73 percent of US consumers think businesses with corporate social responsibility initiatives are changing things for the better. Fifty-three percent of US consumers expect companies to improve the local community, and 50 percent of US consumers will switch to a company that supports a cause they believe in. Key themes under the sustainability pillar are “minimally processed,” “locally sourced,” “environmentally friendly,” “sustainably produced,” “ethically sourced” and Fairtrade. 

“Formulating for the future of food”
There is no magic formula to clean label reformulation, states Kerry. However, when transforming an existing product line, reformulation qualities texture, taste, shelf life and product stability must be taken into consideration. For instance, the removal of emulsifiers can result in loss of product stability, quality and shelf life.

Formulating products beyond cleaning up the label of unacceptable ingredients has become imperative to differentiate in a crowded marketplace, Kerry asserts. Building back key nutritionals, real and added-functionality ingredients are the fastest growing areas of food and beverage innovation. Within this space, added functional ingredients that provide energy, mood enhancement, stress management such as plant proteins, adaptogens, medium-chain triglycerides (MCTs) and collagen are growing in importance beyond the inherent nutrition of products to the consumer.

By Benjamin Ferrer