How ingredient transparency is shaping healthier food choices?

Ingredient transparency, which is mostly perceived as a positive move by consumers toward ingredient transparency, has increased in the food industry, influencing purchasing decisions of consumers across age groups. Praveen Singh, Founder, Snackzin gives an insight

In recent years, there have been many changes to how people engage with food. Consumers want to know about the taste and cooking methods of their food, but they are also interested in the negative health effects of the ingredients in the products they purchase. Consequently, ingredient transparency, which is mostly perceived as a positive move by consumers toward ingredient transparency, has increased in the food industry, influencing purchasing decisions of consumers across age groups.

Clear and honest disclosure about the ingredients contained in food items is referred to as ‘ingredient transparency.’ This means disclosing where & how ingredients are obtained from suppliers, as well as the processing methods used to produce them, potential health benefits of the ingredients themselves, and the risk of cross-contamination with allergens to consumers. Therefore, it is not possible to pinpoint a single definition of ‘ingredient transparency’; however, it is widely accepted that as more consumers are interested in their health and wellness, the growing importance of ingredient transparency will continue to rise as a result of increased awareness by consumers of the risks associated with buying unhealthy products.

A major driving force behind this trend has been the concern of consumers about safety and health. More & more consumers are becoming aware of their health issues, such as obesity, diabetes, and heart disease, which continue to affect the population at large. A growing number of consumers are deciding to be more aware of their food choices and, therefore, are taking time to research label information and unfamiliar ingredients they find in foods, as well as asking questions regarding what types of ingredients are used in food products before deciding to buy them.

Digital revolution
Due to the digital revolution, the ease and availability of access to product information have never been more prevalent than today. Consumers can easily access information on a specific product through social media sites, online reviews, and health-based websites. In seconds, any consumer can now find product information, including the ingredients in that particular product. As such, food outlets or brand-name manufacturers are going to need to provide full nutritional labeling, ingredient lists, health claims, any other coverage of food safety issues, and other types of product specifications and descriptions to keep consumers’ trust intact. This will require companies to act quickly; they may lose consumers’ trust just as fast. Therefore, food companies will continue moving towards more open and honest communication between each other.

By offering visibility into the ingredients contained in food products, brands also provide a way to build customer trust and confidence. By appropriately communicating the actual components of the product ingredients used in a food product to their customers, companies build a foundation of trust and confidence with the customers who purchase their products. Brands that are transparent and ethical about their communication with their consumers will benefit from repeat visits from those consumers; on the other hand, brands that, because of imprecise or misleading labels or secretive ingredient lists, lose the confidence of their consumers will lose many of their customers forever. It is difficult to rebuild faith once it has been breached, and as such, ingredient transparency has become a requirement in the food industry and is no longer a trend.

Transparency
Transparency provides people with the means to make better food choices by helping them in their food selection process. Nutritional transparency in declaring nutrient levels through user-accessible labels provides the opportunity for consumers to compare their food choices against their particular dietary guidelines. Individuals with health conditions or food restrictions must have access to trusted sources of food that are accurately declared in order to not to have an adverse reaction and to receive a product that will be safe to eat.

The demand for recipe clarity also leads to how customers wish to purchase food items: quality food products with fewer ingredients. As an increasing number of consumers have become aware of being conscious of what they eat, they are preferring food products that have fewer artificial ingredients. At the same time, food processors are reformulating their products using fewer artificial additives and offering more natural alternatives. The consumer desire for “clean label” products is an indication of this change.

Due to an increase in the availability of transparent information about the components of food products, people are moving away from making impulsive decisions and are making more thoughtful, deliberate selections when it comes to their food choices; therefore, there is no need for rigid dietary restrictions but rather a need to monitor the choices we make regarding food and to make sure that those choices are aligned with our commitment to optimally healthy living over time.

Consumers are requesting more transparency from brands in regard to the items they purchase, so brands are changing how they communicate with consumers. More details are being provided by brands about how ingredients are sourced, the nutrients contained within the ingredients, and how these ingredients are obtained to supply products to consumers. Brands are also providing more detailed communication regarding the product from other forms of media than just image-based advertising or catchy slogans. The modern consumer wants substance rather than style, which is consistent with the trend toward using data as a method of communicating with your customers.

The food industry is working to achieve complete transparency with its products, but continues to struggle because food labeling is regulated differently in each country, and the way consumers receive information on food packaging does not ensure that all of the necessary information is provided in a manner that makes sense. Too often, brands use technical and/or scientific terminology that the average consumer is incapable of understanding; therefore, it makes it difficult for the industry to ensure that consumers are well informed.

Information overload
One risk associated with increasing the amount of information provided may lead to “information overload” for the consumer. Providing additional information about a product may provide more opportunity for the consumer to confuse themselves rather than enable them through the use of information. As a result, the industry must keep working on the balance between quantity and clarity of the information that is revealed. There has to be enough truth about a certain product so that the consumer is empowered to make an informed purchase, but not so much that it overwhelms them.

While traditionally focused on convenience, ingredient disclosure is becoming known and is of increasing importance in the QSR segment as well, as brands adjust to their evolving consumer base.

Looking into the future, technology will provide the opportunity to enhance transparency. Innovations such as QR codes, blockchain-based tracking, and interactive labeling will allow consumers to view in detail how food arrives at the consumer from the point of view of the production process. These technologies will allow for a more fluid (dynamic) form of transparent information to be made available and, therefore, be used in a manner more accessible and significantly increase consumer interest in transparency.