The Future of Food Labeling: Winning Trust and Maximizing In-Store Appeal

Published by: Datamonitor

Published: Oct. 29, 2008 - 265 Pages

Table of Contents

Overview

Catalyst

Summary

Table of Contents

Table of figures

Table of tables

THE FUTURE DECODED

INTRODUCTION: Labeling is a vital element of food products for many reasons

Labeling is vital to inform consumers when making their food and beverage choices

TREND: Interest in food labels is high across the globe

Emerging market consumers tend to give positive consumer survey responses due to prevailing cultural norms

More consumers appear to be turning their interest in food labeling into regular behavior

Regional variations in food label usage are apparent with greatest interest in Asia Pacific

Key takeouts and implications: consumers are highly interested in food labels which emphasizes the role labels and packaging has in influencing in-store choices

INSIGHT: Situational factors influence propensity to examine nutritional content

Lack of product familiarity is linked with increased label reliance

For around a quarter of time poor 'speed shoppers' reading food labels is not necessarily appealing

Time-starved consumers often focus on only key things when reading a food label

Product attributes also govern the relationship shoppers have with label information

Key takeouts and implications: broader purchasing influences and product category and attributes shape consumers' label usage

INSIGHT: Gender differences exist in food labeling interest and usage

Women are intuitively more interested in diet and nutrition than men

Women are more interested in food labels than men

Other socio demographic insights apply to label interest and usage

Key takeouts and implications: women are more interested in label information than men but the gender gap is not that pronounced

INSIGHT: Much of the recent interest and concern about labeling centers on health issues

Many consumers are demonstrating high levels of concern about their dietary choices

Packaging/labeling has become a fundamental facilitator of health information, and strongly influences food and beverage purchase decisions

The more conscious shoppers are about health, the more interest they have in health related label information

Consumers are drawn to the health information on labels that they have the most interest in

Food safety information is an important and perhaps overlooked component of health related information on labels

Food label information is a potentially important tool to restore consumer trust when it comes to health claims and overall product integrity

Key takeouts and implications: attitudes towards health significantly influence interest and usage of food label information

INSIGHT: User-friendliness and improving user understanding is a key issue for labeling

Consumers express only relative confidence in their ability to use and understand food label information

Consumers are often likely to over-report their understanding of food labels and nutritional information

Consumers lack confidence in using food labeling to determine if the overall product is healthy

Consumers find the variety of label systems confusing

Traffic light systems have become commonplace due to government insistence but are not yet universal

The EU prefers the RDA labeling system

Consumers may want a common system but brands and retailers are reluctant

Consumers are disappointed with overly vague labels

Consumers like the idea of simplified front-of-pack information but are also critical and wary of overly simplistic information

Font sizes may become too small for many consumers as the Seniors population rises

People with eyesight problems may struggle with the small print on labels

Key takeouts and implications: food labels often lack user-friendliness, which prevents labels from directing consumer choice in a fully efficient and effective manner

INSIGHT: Organic and ethical labels are better regulated and enjoy greater consumer confidence

Organic is best regulated but some organic consumers are still confused and mistrusting of product claims

Ethical/fairtrade products are now established grocery purchases but have many different labels

Choice editing by supermarkets makes the consumer choice easier by removing choice

Key takeouts and implications: strictly regulated organic and ethical labels gives them added credence

INSIGHT: Consumers have mixed feelings about 'unregulated' food label terms

Non-regulated terms are confusing but consumers look for both tangible and subjective terms

Consumers are most confused about non-legally defined terms such as 'traditional'

Descriptor label terms have significant appeal for consumers

Consumers want labels that help them avoid being misinformed

Key takeouts and implications: subjective terms elicit confusion, skepticism and positive perceptions in equal measure

INSIGHT: Country Of Origin Labels (COOL) are popular with consumers for many reasons

Consumers place considerable importance on knowing the origin of products

Origin also impacts perceived purchase intentions especially in Asia

'Locavorism' is less important in emerging economies

COOL is welcomed by patriotic consumers who perceive higher levels of quality and safety

Certain products are more credible if from a specific country

COOL labeling is subject to loophole abuse

Key takeouts and implications: provenance labels on food are popular for many reasons

INSIGHT: The desire for more information conflicts with the desire for less packaging and risks shifting the message away from pleasure and enjoyment

There are several contradictions in the food and drink industries that relate to labeling and packaging. Firstly, concern for the environment means that many consumers and ecological pressure groups would like to see the amount of packaging used for grocery items to be continually decreased until all products have the bare minimum needed to safely transport them to the market place and to safely store them until consumer usage. This means that the surface area available for labeling information would similarly have to decrease. Already the effects of this can be seen on certain packaged meat products where the suggested optimal cooking instructions are printed on the reverse of the exterior label so that they are hidden from view for as long as the cellophane wrapper remains in tact. This can potentially limit the desire of consumers to experiment with new cuts of meat.

Consumers have an increasing desire to reduce waste and minimize their packaging footprints

Brands face the dilemma of how to provide sufficient information and more

Too much label information can also detract from messages of enjoyment and indulgence

Key takeouts and implications: balancing complete information with less packaging is problematic as is not letting the label exacerbate feelings of negativity about eating

INSIGHT: A number of labeling initiatives and proposals exist across the globe

Country-specific origin labels exist such a Red tractor (UK) and Red label (France)

Freedom Foods are those which are produced where any animal-derived component is farmed in humane conditions

Package labels detailing carbon footprints are beginning to emerge

Quota based label encouraging both moderation and inclusion are common

Organic labels vary depending on country and certification

Ethical and fairtrade labels also vary nationally

Vegetarian choices are aided by the vegetarian society label

Key takeouts and implications: many labels exist around the world that could act as quality benchmarks

ACTION POINTS

ACTION: Increase consumer convenience for understanding labels

Make instructions as graphical as possible to add convenience

Facilitate the reading of labels with clear branding, use of color and linguistic simplicity

ACTION: Use clear labeling to support consumers dietary goals

Use consistent front of pack labeling to help consumers make good choices

Help consumers to check their nutritional balance with quota based labels

Support dieting and health-conscious consumers with calorie controlled portions

ACTION: Incorporate sensory appeal into food and drink labels

Follow the example of existing multi-sensory labeling

ACTION: Leverage technology to solve the conflicting demands of increased information and decreased packaging

Use online, off-package labeling to better inform consumers

ACTION: Use package information to reassure consumers and tell the product story

APPENDIX

Definitions

Methodology

Further reading and references

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Consumer Survey: level of consumer interest in food label information, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 2: Consumer survey: change in frequency of using nutritional information in the last six months, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 3: Consumer survey: the extent to which European and US consumers used nutritional information on product packaging to help make food and drink choices, by country, 2006

Table 4: Consumer survey: agreement with the statement there is too much choice when doing grocery shopping in 15 countries across Europe, Asia Pacific, South America and the US, by country

Table 5: Consumer survey: extent of consumers' available time to read food and drink labels, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 6: Consumer survey: extent of consumers' in-depth reading of food and drink labels, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 7: Consumer survey: the importance attached to diet and nutrition in creating a feeling of wellbeing or wellness, in 15 countries across Europe, Asia Pacific, South America and the US, by gender and country, 2008

Table 8: Consumer survey: level of consumer interest in food label information, in 15 countries across Europe, Asia Pacific, South America and the US, by gender and country, 2008

Table 9: Consumer survey: change in frequency of using nutritional information in the last six months, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008

Table 10: Consumer survey: level of consumer interest in food label information, in 15 countries across Europe, Asia Pacific, South America and the US, by age, 2008

Table 11: Consumer survey: the propensity to take active steps to eat more healthily more or less often, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 12: Consumer survey: attention do you give towards the food and beverage proprieties, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008

Table 13: Consumer survey: trust in efforts made to ensure safe provision of food and beverage products at the grocery store, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 14: Consumer survey: trust in health and nutritional claims made by food and drink manufacturers, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 15: Consumer survey: perceived user-friendliness of food and drink labels, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 16: Consumer survey: level of consumer understanding of food label health information, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 17: Over 50s nominal population (m) and percentage population by country, Global, 2002-2012

Table 18: Consumer survey: trust in food and beverage products claiming natural or organic ingredients, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 19: Consumer survey: prevalence of choosing fair-trade food and drinks, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 20: Consumer survey: preference for food and drink marketed as 'authentic', 'home-made' or 'original', in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 21: Consumer survey: the importance attached to knowing the provenance of grocery items, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 22: Consumer survey: influence of knowing the provenance of grocery items on purchase decision, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 23: Consumer survey: importance of choosing locally-sourced groceries, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

Table 24: National initiatives to outline fruit and vegetable consumption by quotas, by country

List of Figures

Figure 1: Food and drink labeling must serve many purposes as a broader range of influences shape the choices that consumers make

Figure 2: Consumers demonstrate a high level of interest, at least attitudinally, towards label information

Figure 3: Globally, consumers demonstrate a high level of interest, at least attitudinally, towards label

Figure 4: Time poor shoppers often lack time to interpret label information

Figure 5: Many consumers limit their information search when using food labels

Figure 6: Females are more likely to associate diet and nutrition with wellbeing than males

Figure 7: Women are more interested in food label information than men

Figure 8: Young adults are slightly less interested in food label information

Figure 9: A directional shift towards healthy eating is clearly apparent from consumers' perception on their own eating behavior

Figure 10: Labels on food packaging of often the main source of nutritional content

Figure 11: Additional evidence also highlights that consumers are most attentive towards macronutrients such as fats, sugar, and salt

Figure 12: Consumers are most attentive to fat and eating from a diverse range of foods

Figure 13: Though more consumers trust the efforts made to ensure the safe provision of food and beverage products at the grocery store than those who don't, there is considerable ambivalence overall

Figure 14: Consumers are unconvinced by the health and nutritional claims made by food and drink products

Figure 15: A myriad of labeling symbols are competing for consumers' attention and, in some instances, adding to choice complexity

Figure 16: Consumers express only relative confidence in their ability to use and understand food label information

Figure 17: A minority of consumers feel confident they can accurately assess if a product healthy based on label information

Figure 18: Organic claims generally induce more trust than general health or ethical claims

Figure 19: Country of Origin labels often have national-specific variations

Figure 20: Freedom Foods are available in many countries and help to allay worries over animal welfare

Figure 21: Carbon footprints are likely to become the next frontier of food labeling

Figure 22: The '5-a-day' label is one of the easiest to understand

Figure 23: Many organic schemes and logos exist across the world

Figure 24: Ethical products have some of the most consistent labels

Figure 25: The vegetarian society label is also consistent

Figure 26: Labeling must be well executed, easy to understand and based on trust

Figure 27: Graphical instructions have numerous benefits

Figure 28: Target's prescription bottle can act as a benchmark for labeling excellence

Figure 29: Front of pack labeling is thought to be most effective

Figure 30: Five-a-day labels could help more consumers take in healthy nutrients

Figure 31: Clear calorie-controlled product labels should appeal to many consumers

Figure 32: Sensory labeling can have practical and pleasure elements.

Figure 33: Shot codes offer vast untapped labeling opportunities

Figure 34: Health conscious consumers want to know about the products they ingest or topically apply so manufacturers are making greater efforts to be transparent

Abstract

• Examines the increasingly expansive role of labels in directing shopper choices including nutrition, origin, ethics and convenience
• Understand how much emphasis shoppers place on micro and macronutrients when making product selections and how labels guide this
• Global coverage: proprietary consumer survey data from 15 countries across five continents covering a host of highly pertinent food labeling issues
• Detailed recommendations and interpretation offering practical strategies based on the trends and insights uncovered in the report

• Trend understanding: identify global consumers' interest in, and usage of, food label information and how this is changing over time
• Actionable insight: understand what factors are driving brand choice and how this can be addressed with on-pack labels
• Ideation and inspiration: spark new ideas by learning from innovative 'on-trend' products and marketing campaigns in the FMCG industry

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