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Consumer interest in the origin of products has dovetailed with a 'back to basics' approach to formulation.
April 1, 2015
By: Sean Moloughney
Editor, Nutraceuticals World
Consumer demand for natural products remains a driving force in the nutraceutical marketplace, despite the lack of a standard definition for what “natural” really means. Concerns about additives in processed foods have also led to increased focus on labels and ingredient lists, offering companies a significant opportunity to connect with customers and communicate important brand messages. This growing “clean label” movement is evident from a surge in claims that include, for example, gluten-free, vegetarian/vegan, Kosher and Halal, non-GMO, organic and no artificial colors/preservatives. (For more information, see: “Clean Label: A Litmus Test,” and “Consumers & Clean Labels: Where is the Market Heading?”) “At the broadest level, the majority of U.S. consumers are trying to eat more healthily,” noted David Sprinkle, research director at Packaged Facts, adding, “Increased attention to nutrition in turn means a brighter spotlight on ingredients.” As food journalist and New York Times columnist Mark Bittman said in his keynote address at Natural Products Expo West in March, too many “food” products sold in grocery stores shouldn’t really be considered food. Instead, food should be things our grandmothers and great grandmothers would recognize. Much like the famous edict of author and activist Michael Pollan that people should “eat food, not too much, mostly plants,” I might suggest food and beverage companies aim to deliver “familiar ingredients, not too many, mostly natural.” As for dietary supplements, according to the Natural Marketing Institute’s (NMI) 2013 Supplements/OTC/Rx (SORD) study, 44% of supplement users are concerned about tainted or illegal ingredients in products and welcome education on the safety of the formulation process. So while the New York Attorney General investigation into herbal supplements may be fatally flawed, it may also offer companies that operate according to strict principles of quality, efficacy, transparency and sustainability, a chance to appeal to customers looking for truly healthful products. From a demographic standpoint, while Baby Boomers continue to wield tremendous spending power and interest in natural, preventive health products, Millennials represent an emerging consumer group companies need to attract. Of all demographic segments, Millennials showed the most interest in “clean label” supplements, according to the SORD study; 60% of Millennial supplement users are aware supplements can be vegetarian based, and 54% deem non-GMO-certified supplements are important. Growth of the clean label concept in the U.S. seems a natural evolution of market forces, whereby consumer demand for knowledge about the origins of their foods and supplements has dovetailed with a “back to basics” approach to delivering health products. It seems less really is more these days.
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