Clean Label Products Driving Retail Sales as They Gain Preference Among Consumers
81% of shoppers say it’s important to them to purchase clean label food products
Jacksonville, Fla. – Acosta Group has released the results of its recent Clean Label Insights Study with its proprietary Shopper Community providing brands and retailers insights into the growing value shoppers place on clean label in purchasing decisions as well as their attitudes on regulations pertaining to product ingredients, including the California Food Safety Act of 2023.
Clean Label Key Attribute in Shoppers’ Purchasing Decisions
Acosta Group’s deeper dive into clean label comes shortly after the release of its five retail predictions for 2024, one of which stated that consumers will prioritize what’s NOT in their products.
While all consumers may not be aware of recent regulatory legislation, 83% of shoppers are already knowledgeable about clean label products or have heard the term. Not officially defined, clean label products are described in the industry as having as few ingredients as possible, easy-to-recognize ingredients, and no artificial ingredients or synthetic chemicals.
“Our research further defines shopper priorities, preferences and generational differences around clean label products,” said Kathy Risch, SVP, Thought Leadership and Shopper Insights, Acosta Group. “It’s clear that shoppers consider the absence of negatives, or an emphasis on what’s not in the products, to be the most important attribute in their clean label purchasing choices.”
When informed of the term, shoppers say clean label is important or very important for their purchasing decisions, with nearly 8 in 10 shoppers believing the products are better for them/their families and for the environment.
Shopper attitude is reflected at checkout, with clean label sales outperforming total store sales by a compound annual growth rate of 8% versus 6%, respectively, over four years, according to NIQ.
Without a doubt, legislation is accelerating the clean label trend as it forces significant changes be made to foods that are consumed every day. Brands are reinventing the classics and taking steps to remove chemicals, but more can be done based on product changes that have occurred abroad. Specific to food and/or beverage, 55% of all shoppers believe more regulations are needed. That number increases to 72% for Gen Z, and 62% for clean label buyers.
The biggest challenge to clean label purchases is cost, with some shoppers saying the products are “too expensive” or that they “don’t believe the hype.” When prices are higher, 40% of men are willing to pay for clean label products, compared to 28% of women, according to the recent study.
Clean Label Products Skew Younger Overall
Over the past six months, most consumers knowledgeable about clean label purchased some of these products, led by plant-based milk, plant-based meat, and baby food sales. But clean label products skew younger overall, with Gen Z and Millennials stating that they expect to buy more of these products in the future, positioning them as clean label’s strongest advocates.
For younger consumers, clean label purchasing decisions are distinctly driven by health benefits for themselves and their families. In the case of Gen Z and Millennials, a higher value is placed on natural or Certified Organic products.
The Acosta Group study revealed that today, younger buyers are more likely to notice clean label brands or retailer-led clean label programs, both online and in-store, at the retailers they shop most frequently.
Takeaways for Retailers and Brands
Importantly, 57% of shoppers trust retailers’ clean label efforts, with that number rising to 77% for households with kids, according to the Acosta Group study. In addition, 70% of all shoppers want retailers to help them understand clean label products.
We know that many consumers – especially younger consumers – care about clean label, support legislation, and trust retailers to offer them true clean label products as they also inform them about these products. This lays a solid foundation for ongoing sales growth, supported by savvy, integrated and strategic programming to continue to build consumer trust, allay cost concerns, and educate shoppers about these better-for-you products.
“It’s essential that clean label programming meets consumers as they shop seamlessly in-store and online, through digital and social media campaigns and retail media, in addition to packaging, signage and shelf management. Understanding the differences in key label attributes is valuable to building campaigns, and retailers should leverage AI to provide shoppers with recommended products based on the absence of ingredients, a differentiating attribute we know is key,” said Andrew Fleming, SVP, Natural, Acosta Group.
Shopper research was conducted Jan. 19-22, 2024, with 1,257 U.S. shoppers, members of the company’s proprietary Shopper Community. The Acosta Group Shopper Community is comprised of over 40,000 demographically diverse shoppers across the U.S. and is the company’s proprietary community for survey engagement.
