While consumers at convenience stores and elsewhere might not be aware of recent regulatory legislation regarding clean label products, 83% are already knowledgeable about them or have heard the term, according to a recent study from Acosta Group.
Clean label products are not officially defined but described in the industry as having as few ingredients as possible, easy-to-recognize ingredients and no artificial ingredients or synthetic chemicals, Jacksonville, Florida-based Acosta Group said in its new Clean Label Insights Study.
“Our research further defines shopper priorities, preferences and generational differences around clean label products,” said Kathy Risch, senior vice president for thought leadership and shopper insights at 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 buying decisions, with nearly eight in 10 shoppers believing the products are better for them/their families and for the environment, according to the study.
Shopper attitude is reflected at checkout, with clean label sales outperforming total store sales by a compound annual growth rate of 8% versus 6% over four years, according to NIQ (formerly Nielsen), Acosta Group said.
‘Significant Changes’
“Legislation is accelerating the clean label trend as it forces significant changes be made to foods that are consumed every day,” Acosta Group said. “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 beverage, 55% of shoppers think more regulations are needed—and that number increases to 72% for Gen Z and 62% for clean label buyers, Acosta Group said.
“Understanding the differences in key label attributes is valuable to building campaigns.”
The biggest challenge to clean label purchases is cost, with some consumers saying the products are “too expensive” or that they “don’t believe the hype.”
When prices are higher, 40% of men will pay for clean label products compared with 28% of women, the study shows.
Skewing Younger
In the past half year, most consumers knowledgeable about clean label bought some of these products, with plant-based milk, plant-based meat and baby food leading the way, Acosta Group said. The study also shows that clean label products skew younger overall, with Gen Z and millennials saying they expect to buy more of these products down the road, 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,” Acosta Group said. “In the case of Gen Z and millennials, a higher value is placed on natural or certified organic products.”
Younger buyers are more likely to notice clean label brands or retailer-led clean label programs, online and in-store, at retailers they shop most frequently, the study shows.
What Retailers, Brands Can Do
The study also shows that 57% of shoppers trust retailers’ clean label efforts, with that number rising to 77% for households with kids. Also, 70% of shoppers want retailers to help them understand clean label products.
Many consumers, particularly younger ones, “care about clean label, support legislation and trust retailers to offer them true clean label products as they also inform them about these products,” Acosta Group said. “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.”
Andrew Fleming, senior vice president, natural, at Acosta Group, said 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.
“Brands are reinventing the classics and taking steps to remove chemicals.”
“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,” he said.
Shopper research for the Clean Label Insights Study was conducted Jan. 19-22 with 1,257 U.S. shoppers who are members of the company’s proprietary Shopper Community. The Acosta Group Shopper Community is made up of more than 40,000 demographically diverse shoppers across the U.S. and is the company’s proprietary community for survey engagement.
Acosta Group is a collective of retail, marketing and foodservice agencies empowering brands and retailers to win in the modern marketplace. By delivering transformative, commerce-focused solutions and more than 95 years of expertise, Acosta Group connects the company’s partners with people at every point in the consumer journey.
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