Conventional Is Out, Clean Label Is In
Consumers are increasingly focused on transparency when it comes to products they buy, and conventional product sales are declining while those that tout simple, clean or sustainable attributes are on the rise, according to new research from Nielsen. This demand for clean also is changing the products retailers are stocking in their stores.
For the milk/dairy alternative category, clean label makes up 90 percent share followed by sugar/sweeteners with clean label accounting for 83 percent share. Cooking wine and vinegar rounds out the top three with 81 percent share touting clean label.
While natural and specialty retailers were the first beneficiaries of this trend, it’s important to note that it has become a mainstream movement. Nearly all, 93 percent, of U.S. households have purchased clean label product at grocery stores while 70 percent have purchased them at a mass merchandiser/supercenter. Looking at the fast-moving consumer goods, half of consumers’ shopping trips now include a clean label product purchase.
Within the purchases, certain demographics are more likely to gravitate to certain claims. Across generations, Millennials and Generation X consumers are more likely to seek out and purchase products that are labeled organic, free of GMOs (genetically modified organisms), and don’t include added hormones. Comparatively, members of the Greatest Generation place less importance on these claims.
Demographic groups influencing the forward movement of this trend include consumers under the age of 35, those with annual household incomes over $100,000 and families with children. They’re leading the way with respect to buying products they believe are better for them, their families and the planet. They care much more about transparency and clean label than older generations do, and their spending prowess is growing.
For additional insights into transparency trends, you can download the Clean Label report.