Clean label food formulations can increase profits: Study

First-of-its-kind global study from Ingredion outlines ways manufacturers manage clean label barriers and increase in-market success

Ingredion Incorporated has shared the first-ever research which highlights the profit potential of clean label formulations. In this study, conducted with global product developers across large and mid-sized food companies, 40% of global manufacturers reported taking price increases, and 58% reported an increase in overall revenue after converting to and making clean label claims.

“The new research shows that clean labels can generate increased revenue in addition to creating substantial consumer value,” said Daniel Haley, global platform leader for Clean & Simple Ingredients at Ingredion. “Our proprietary ATLAS data shows what percentage consumers are willing to pay extra for clean label formulas at the country and product levels. Now we have an understanding into what food formulators need from us to grow their business and power profits.”

More than half of the respondents shared that offering clean label foods or beverages is a priority within their company’s overall business strategy. Globally, all four regions reported at least half of their portfolios have already converted to clean label formulations and have plans to increase their clean label efforts in the next 2-3 years.

The Asia Pacific region reports greater than 50% conversion to clean label formulations across its product portfolios. In the next 2-3 years, an additional 15% of product portfolios are projected to convert to clean labels as well. The finding also revealed that partnerships between R&D, procurement and marketing proved to be a key factor to successful conversions to clean label.

Respondents noted three key barriers to clean label development, including Cost, Shelf Life and Lack of Formulation Expertise.

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