Clean Label market opportunities in the US

Clean Label market opportunities in the US

17-18 October 2019 Mandalay Bay, Las Vegas, USA

Learn more about Fi North America:

www.figlobal.com/northamerica

Clean Label market opportunities in the US Consumer demand for clean labels in the US is no longer something that ingredients suppliers and food manufacturers can afford to ignore. Health-conscious and increasingly informed consumers – from Millennials through to the elderly – are looking for natural ingredients, clear packaging and product narratives that resonate. Studies have also shown that as many as 73% of consumers would be happy to pay a higher retail price for a food or drink product made with ingredients they recognise and trust.1

Growth potential Marion Schumacher, Informa Health & Nutrition Senior Conference Producer, said:

“The natural products market in the US was over $200bn in 2017, which represents growth of 6.3%. Natural powders, particularly in the protein area and clean label superfoods are hot, while pills and weight loss products are not.”

Source: Trend Watching From the U.S. Market, Informa Health & Nutrition

In terms of natural ingredients, the growing popularity of protein has been well-documented, and plantbased proteins offer manufacturers clean label opportunities that resonate with consumers. Protein is associated with health and wellness, and natural protein-based ingredients have moved beyond their traditional core sports nutrition market.

Clean Label market opportunities in the US | 2

Superfoods like royal jelly and hemp are now ubiquitous, and can be found in dietary supplements, beverages, traditional foods and even pet foods. The market for natural colorants also continues to grow as consumer seek out natural and attractive products. Consumers are also interested in the provenance of specific ingredients and demanding more transparency.2

Healthy trends Schumacher identified several macrotrends that will drive the US natural products sector over the next few years:

“For Millennials, buying a product is increasingly a moral decision. Manufacturers should ensure that their brand has a clear purpose and mission.”

Buying Can be a Moral Decision 100 90 80 70 60 50 40 30 20

63%

58%

40%

Gen X

Boomers

10 0 Millennials

Source: Trend Watching From the U.S. Market, Informa Health & Nutrition

The same goes for environmental and social responsibility, said Schumacher. Millennials want a narrative; storytelling should therefore be a very important part of marketing strategies within the US. The ‘Buy one, give one’ business model for example has helped manufacturers to create an emotional connection with consumers.

Schumacher said:

“Plenty of brands are already successfully doing this.”

Manufacturers should also tailor their products and messages for older US consumers, who want natural ingredients to live longer and healthier.

Schumacher continued:

“We are moving away from ‘ageing is bad’ towards thinking of ageing as something that can be healthy. Seniors can be empowered and engaged through packaging and branding.”

Clean Label market opportunities in the US | 3

Opportunities for ingredient suppliers Finally, ingredients suppliers and manufacturers looking to tap the US market should be aware of regulatory requirements. The FDA Food Safety Modernization Act (FSMA) for example recently toughened up rules to prevent food safety problems from occurring. The law gives the FDA important new tools to hold imported foods to the same standards as domestic foods. All food recall-related information is published in a standardised way, and a recalled product’s photo, batch number and distribution are usually publicly communicated.

If you are interested in finding out more about organic ingredient opportunities in the US, the Food ingredients North America event can provide unique insights and networking possibilities.

The event will provide buyers and sellers of ingredients with practical, objective formulation advice, regulatory challenges, consumer trend data and new ingredient technologies from a global perspective, as well as the opportunity to do business in the US.

The information provided here was compiled with due care and up to date to the best of our knowledge on publication.

Sources 1

https://www.naturalproductsinsider.com/claims/75-consumers-will-pay-extra-clean-label-ingredients https://www.arlafoodsingredients.com/the-whey-and-protein-blog/trends/going-clean-label-in-the-ussports-nutrition-market/

2

Fi North America is co-located with:

Clean Label market opportunities in the US | 4