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The ‘Clean Label’ ShopperHoning in on who they are

The “Clean Label” Shopper 2

© 2017 Cargill, Incorporated. All rights reserved.

The list of questions is growing. Is it transparency that resonates or non-GMO ingredients? Do consumers want to see certified organic products or do they care more about sustainability issues or whether a product is produced locally?

The answers, many experts say, depends on the consumer you ask.

Those experts are right, according to Canadian survey data of 50,000 respondents in 47 countries.1 In the U.S. they found that 30 percent of consumers link the term “clean label” with “free from artificial ingredients”; 29 percent say “clean” equals natural and organic; 25 percent noted no pesticides, chemicals, toxins and minimally processed as important; and 20 percent say its non-GMO. And a whopping 45 percent don’t know what “clean label” means.

Driving ForcesStill, the trend has broadened so much, it is blurring the lines between the concepts of natural, organic, local, sustainable, nutritious and healthy products. Without a clear definition, many retailers are shaping consumer expectations by making their own definition. Most notably, Whole Foods Market.

Whole Foods has been an important driver of the “clean label” trend, according to Jaclyn Bowen, executive director of the Clean Label Project, a Denver-based nonprofit focused on health and transparency in consumer product labeling.

The chain’s standards program has heightened attention to issues like non-GMO, sustainability, and artificial sweeteners, flavors or colors. The company has also committed to complete transparency for all products in its stores by 2018. (Editor’s Note: Upon the announcement and closing of the acquisition by Amazon of Whole Foods Markets, the company has reiterated its commitment to its long-held quality standards, although GMO transparency was not specifically mentioned.2)

Despite the lack of clarity, Bowen believes the “clean label” trend is going mainstream. “Consumers are increasingly concerned about what’s in the products they buy,” she said, and they are looking beyond marketing and even what’s on the ingredient deck when making purchasing decisions. These are consumers who have grown up with the internet and they have an expectation of transparency. “This is all great for brands that are doing a good job, but for those playing catch up there is a risk,” Bowen said.

Brands and research organizations are trying to help by zeroing in on what consumers mean when they say things like transparency. According to a recent study on U.S. Grocery Shopper Trends, from the Food Marketing Institute, when consumers say “transparency” they associate this with brands that are honest, open and label friendly. They also want transparency to serve their needs for safe food, health and wellness, food discovery and giving them a closer connection to their food. Nearly half want to know exactly what goes into the food they eat, according to the study.

“Clean label” has become an all-encompassing term for numerous trends surrounding food and is of growing relevance in how shoppers make purchasing decisions. But the market for these products is changing quickly, and the lack of clarity on what “clean label” means to consumers has left product developers at a bit of a loss on how to best position their products.

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The “Clean Label” Shopper 3

© 2017 Cargill, Incorporated. All rights reserved.

The “Clean Label” Consumer: A SnapshotConsumers who care about the “clean label” trend come from many different demographic groups, each of which associate different meanings with the term “clean label.” Such demographic groups include:

Millennials: Young, sophisticated online consumers willing to do their homework to find out about

ingredients and what’s behind a brand. This group most closely associates “clean label” with natural and organic.

New Parents: Parenthood is not surprisingly a gateway for consumers who are interested in the

“clean label” movement. Many of the hot topics under this umbrella, such as organic and non-GMO are particularly important to new moms and dads. These typically Gen X consumers most often associate “clean label” with minimally processed products.

Technology Savvy: Younger consumers (Millennials and the following generation, Gen Z) who have

grown up during a time of high technology have greater expectations about the transparency of products they purchase.

Baby Boomers: They were at the forefront of the organic movement, so it’s no surprise they are

interested in “clean label” concepts, as they age and think more about their health and legacy. These older consumers may also have more expendable income to purchase products with the price premium often attached to “clean label.” Baby boomers generally link “clean label” with products that are free from artificial ingredients.

Affluent: “Clean label” consumers have high incomes and are well educated.

Overall, consumers want to have trust in the brands they engage with, but more than half of them indicate some trust issues with the way foods are made, according to data from Nielsen and Label Insights Transparency ROI Study.3 In their recent survey of U.S. consumers, the data suggest that many are becoming more mindful of the foods they eat and are increasingly willing to pay extra for products that meet their needs and expectations:

39% would switch to a new brand for clearer and more accurate

product information

73% feel positive about brands that share the “why behind the buy”

68% will pay more for foods and beverages that don’t contain

ingredients they perceive as bad

Sources:2017 U.S. Grocery Shopper Trends. The Food Marketing Institute. https://www.fmi.org/our-research/research-reports/u-s-grocery-shopper-trendsShopper Insights: Decision Making at the Shelf. New Hope Network. http://www.newhope.com/market-data-and-analysis/shopper-insights-decision-making-shelf-infographicWho is driving the clean label agenda, and what does it mean. FoodNavigator-usa.com. http://www.foodnavigator-usa.com/Regulation/Who-is-driving-the-clean-label-agenda-and-what-does-clean-really-meanClean Labels: What are consumers saying what is industry doing? Findings from the Canadean Global Survey Q4 2015. Presented by Tom Vierhile, MSc, Innovation Insights Director. https://www.globalfoodforums.com/clean-labels-what-are-consumers-saying-what-is-industry-doing/Cargill Consumer Study, August 2017

1 Clean Labels: What are consumers saying what is industry doing? Findings from the Canadean Global Survey Q4 2015. Presented by Tom Vierhile, MSc, Innovation Insights Director. https://www.globalfoodforums.com/clean-labels-what-are-consumers-saying-what-is-industry-doing/

2 Amazon and Whole Foods Market Announce Acquisition to Close this Monday, Will Work Together to make High Quality, Natural and Organic Food Affordable for Everyone. Press release http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2295514

3 Nielsen/Label Insight Transparency ROI Study. https://www.labelinsight.com/transparency-roi-study

As the “clean label” trend continues to grow, suppliers like Cargill are taking initiative and conducting their own proprietary research on the topic. Cargill’s proprietary research provides insights on consumer attitudes toward “clean label” that Cargill then shares with its customers in an effort to help them meet consumer demands. While the Cargill data reiterates that “clean label” means different things to different consumers, the main takeaway is that “clean label” consumers value simplicity and clarity when it comes to the products they purchase.

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