Consumers don't want to be confused by the ingredients in the food and beverages they buy. This is why the "clean labeling" trend has grown popular.
Surveys have shown broad support for labels indicating which products contain simple, recognizable and minimally processed ingredients. For instance, a study of 1,300 people in Europe, North America and the Asia-Pacific region conducted by Ingredient Communications found that 52 percent were willing to spend at least 10 percent more on products with clean labels, as reported by Natural Product Insider. An additional 18 percent said they would spend 75 percent or more.
"The 'clean labeling' trend has grown more popular."
Clearly, there is a market for this sort of transparency among food and beverage products. But what's the best way to appeal to this market?
Richard Clarke, director of Ingredient Communications, suggested that companies adopt a co-branding strategy – meaning that many different products could contain recognizable, branded ingredients.
"We have seen the power of the 'Intel Inside' concept in the home computer market. If it works for selling laptops, then why not food and drink?" he told Natural Products Insider. "Co-branding can develop consumer trust and provide a clear signpost for differentiation, which can be converted into higher spend, loyalty and repeat purchases."
Clarke also pointed out that food and beverage companies may resist co-branding out of fear that it would hurt their ability to shop around for the best price on ingredients. However, he argued that this could be balanced by the higher prices consumers appear willing to pay for clean labeling.
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