The journey to “clean label”
There is little doubt that consumers are becoming more mindful
of their purchases and the foods they eat. Though the roots of this movement go back a number of years, in 2020, the idea of “clean”
eating is becoming ubiquitous.
Euromonitor estimates the category will reach $180 billion in 2020.
1
Values are changing
There has been a shift in the
“clean label” paradigm from individualistic thinking to
a more holistic perspective:
BEFORE 2019
2019+
What’s new is that consumers have moved to choosing products based
on label-friendly ingredients.
This is driven by four major pillars:
BEFORE
2019
“I choose to eat what’s good for me
and also good
or the planet.”
“What is good for the planet is also good for me.”
2019
AND
BEYOND
Source: HealthFocus International 2019 Clean Conscience Report
How did we get here?
Many movements emerged as consumer attitudes about health
and diet shifted:
Early 2000s
• Trust issues: Consumers scrutinize synthetic ingredients with chemical-sounding
names, giving rise to foods with “free-from” and non-GMO claims.
• Rise of gluten-free: Americans have growing concerns about food allergies and
sensitivities and how certain foods might impact their health.
• Natural is nebulous: Between 2007 and 2013, Euromonitor notes that natural
product claims on U.S. launches drop from 33% to 22% as manufacturers look for
more specific ways to promote products.
• Sustainability surfaces: Sobering statistics on pollution and environmental health
risks prompt awareness of conserving natural resources, reducing carbon footprint
and eating responsibly.
Market impact
Experts agree that “clean label” grew as an umbrella term with the
convergence of all these trends. But it initially stayed highly fragmented.
Clean Label 1.0
• The way Grandma made it: First generation clean label is about simple products
sans artificial flavors and colors, with ingredients consumers recognize or would
find in their own kitchens.
What “clean” means:
Gluten-free reflects cultural belief that digestion is the root of all wellness.
2013
Source: The Hartman Group
• Gluten-free: In 2012, NPD Group estimates that of U.S. adults were reducing
gluten intake, without a diagnosis of celiac disease, or even gluten sensitivity.
28%
2
• By 2016, ingredient recognition is a top factor:
3
- of consumers in North America, Europe and Asia said they would be
more likely to buy products that contain ingredients they recognize and trust
76%
10%
- More than half would pay more on foods or drinks that contain
familiar ingredients
Pressure to reformulate
Companies increasingly seek label-friendly alternatives for ingredients under fire. New options include botanical extracts, pulse-based proteins, apple juice concentrate and native starch blends.
2020+
2016
Food companies improved the health credentials
of 180,000 products (about 100,000 more than
the previous year).
5
Clarity for “clean”
Even as consumers seek out “clean label,” about one in three admitted they didn’t know what the term means.
Clarity for “clean”
I don’t know what clean label means
Free-from article IngredientsNatural/organics claims
No pesticides/chemicals/toxins
Allergen-free
No GMO’sMinimally processed
Simple/short ingredient lists
Transparent packaging
Source: Canadean Ltd. Research Report,
Q4 global consumer survey, 2015
2017
Understanding of “clean label” is broader, but not deep;
although it doesn’t seem to matter.
• say they are at least somewhat likely to seek
these products out even though they don’t have a good
understanding of the designation.
8 in 10
• of U.S. consumers say they are aware of “clean label”
products, but only are confident they know what the
term means.
9%
57%
Source: Cargill Proprietary Clean Label Research, 2017
Source: Cargill Proprietary Clean Label Research, 2017
Organic
Found in the part of the store where I expect to find fresh food
Contains only familiar ingredients
Made with ingredients that come from plants/animals
Found in a store where I expect products to have a clean label
Is a brand that I expect to have a clean label
Top “clean label” determinants include:
The concept of “clean label” drives growth on store shelves
Salty snacks
Candy
New age beverage
Liquid coffee
Ice cream
Baked bread
Frozen entrees
Wholesome snacks
Yogurt
Cookies
Source: Nielsen Clean Label Report, Aug, 2017.
It’s Clear Transparency is Winning in the U.S. Retail Market
Who cares
about “clean”
Consumers who are more aware
of the “clean label” trend are label readers, ingredient scrutinizers
and nutritionally aware.
They pay attention to “clean label” in: Dairy products 29%
Nutrition bars/drinks 28% Yogurt 27%
Ready to eat cereals 27%
Source: Cargill Proprietary Clean
Label Research, 2017
“Clean label”
nears the
tipping point:
2017
of households have
purchased products they
perceive as “clean label”
at grocery stores.
93%
of consumers say “clean label” is important for foods consumed by children
The most ardent “clean label” shoppers also tend to be parents who place more emphasis on “clean label” products they are buying for their kids.
37%
Source: Cargill Proprietary Clean Label Research, 2017
2018
Next generation “clean label” emerges – it now encompasses
much more of what is listed on an ingredient deck.
“Clean label” 2.0
Evaluating “clean”
Consumers evaluate whether
a product is “clean” based on:
Source: The Hartman Group.
Health & Wellness 2017 Report
• What’s in it
• How it was made
• Who made it
Transparency is a new benchmark
Companies realize that being transparent about “clean” helps build consumer trust.
• of consumers say that recognizing ingredients
and brand trust have equal impact on price to purchase.
70%
37%
6
7
2020
“Clean label” shows no signs
of slowing in the U.S.
1. Clean Label, a $180 billion global opportunity. Food Business News. Oct. 2016.
2. NPD Group. Is gluten free eating a trend worth noting? https://www.npd.com/perspectives/food-for-thought/gluten-free-2012.html
3. Ingredients Communications 2016 Study. http://www.mynewsdesk.com/uk/pressreleases/press-release-name-your-price-nearly-three-quarters-of-consumers-will-pay-extra-for-ingredients-they-recognise-1690957
4. Cassiday L. Clean Label: The next generation. American Oil Chemists Society (AOCS). Sept. 2017. https://www.aocs.org/
stay-informed/inform-magazine/featured-articles/clean-label-the-next-generation-september-2017?SSO=True
5. Consumer Good Forum Report 20166. Nielsen Clean Label Report, Aug, 2017. It’s clear transparency is winning in the U.S. retail market7. Source: International Food Information Council Foundation 2019 Food and Health Survey
7 in 10
Evaluating “clean”
Americans are extremely/very interested in eating clean 39% Clean brand influence is extremely/very important 25% Eating clean has become more important in their diet over the last year 22%
Source: 2019 Global Clean Conscience Report
What matters next?
Source: Cargill Proprietary Clean Label Research, 2017
Brands that want to win in “clean label” will need
to understand what it means to their customers.
Here are some things to keep in mind:
“Clean label” shoppers are paying attention. Be concise
and truthful in your communications:
Ingredients still count
Make the front of pack count
• respondents are very likely to check
the nutrition facts panel and read front of
pack nutrition summary
• consumers are likely to review the front
of pack summary for ingredients they
want to avoid
2 in 3
• respondents are still extremely likely
to check the ingredients list to avoid certain
ingredients they don’t like
6 in 10
Source: 2019 Global Clean Conscience Report
Supporting products
and brands that adhere to “clean” values
One in two Americans value who grew the
food and how it was made. They are now
willing to pay more…
• for environmentally 41%
responsible practices*
• for socially responsible 43%
practices*
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