Defining the “Clean Label” Buzzword
There is no widely accepted definition of “clean label” but this term is having a major impact on the food and supplement industry. In a recent survey, 73 percent of consumers from the U.S., Europe, and Asia said they will pay more for clean label products.1 To understand this trend, it is important to understand why consumers want clean labels and what they perceive to be “clean.”
A Desire for Healthier, Cleaner Products
The interest in clean labels was ignited in 2008 when Michael Pollan, journalist and author, suggested consumers not buy products with more than five ingredients, including only ingredients that are easy to pronounce.3 Pollan believed these standards would help consumers purchase healthier products. This influenced consumers to pay more attention to labels and ingredient lists. Today, the ingredients in a product are important but often the ingredients that aren’t in the product are of equal importance: non-GMO, gluten-free, etc. According to Innova, foods with "free-from" claims accounted for 22% of new food and beverage launches in 2016; 26% of new launches had "clean-label" claims.8
Socio-Cultural Factors Driving Clean Label Demand
Issues such as sustainability, transparency, and animal welfare are growing in importance among modern consumers and more are looking for these principles reflected on product labeling. A Euromonitor survey indicated 65 percent of consumers try to have a positive impact on the environment through their everyday actions.9 The millennial population tends to be more concerned about responsibly-sourced goods than baby boomers. According to NBJ, 65 percent of millennials will pay more for goods that they know were sourced responsibly and 28% of baby boomers would pay more for the same goods.13
How Consumers Evaluate Product Labels