Overview 1
Catalyst 1
Summary 1
Table of Contents 2
Table of figures 3
Table of tables 4
THE FUTURE DECODED 5
INTRODUCTION: Labeling is a vital element of food products for many reasons 5
Labeling is vital to inform consumers when making their food and beverage choices 5
TREND: Interest in food labels is high across the globe 6
Emerging market consumers tend to give positive consumer survey responses due to prevailing cultural norms 7
More consumers appear to be turning their interest in food labeling into regular behavior 9
Regional variations in food label usage are apparent with greatest interest in Asia Pacific 10
Key takeouts and implications: consumers are highly interested in food labels which emphasizes the role labels and packaging has in influencing in-store choices 11
INSIGHT: Situational factors influence propensity to examine nutritional content 12
Lack of product familiarity is linked with increased label reliance 12
For around a quarter of time poor 'speed shoppers' reading food labels is not necessarily appealing 12
Time-starved consumers often focus on only key things when reading a food label 15
Product attributes also govern the relationship shoppers have with label information 17
Key takeouts and implications: broader purchasing influences and product category and attributes shape consumers' label usage 17
INSIGHT: Gender differences exist in food labeling interest and usage 18
Women are intuitively more interested in diet and nutrition than men 18
Women are more interested in food labels than men 19
Other socio demographic insights apply to label interest and usage 22
Key takeouts and implications: women are more interested in label information than men but the gender gap is not that pronounced 23
INSIGHT: Much of the recent interest and concern about labeling centers on health issues 24
Many consumers are demonstrating high levels of concern about their dietary choices 24
Packaging/labeling has become a fundamental facilitator of health information, and strongly influences food and beverage purchase decisions 26
The more conscious shoppers are about health, the more interest they have in health related label information 27
Consumers are drawn to the health information on labels that they have the most interest in 28
Food safety information is an important and perhaps overlooked component of health related information on labels 31
Food label information is a potentially important tool to restore consumer trust when it comes to health claims and overall product integrity 34
Key takeouts and implications: attitudes towards health significantly influence interest and usage of food label information 36
INSIGHT: User-friendliness and improving user understanding is a key issue for labeling 36
Consumers express only relative confidence in their ability to use and understand food label information 37
Consumers are often likely to over-report their understanding of food labels and nutritional information 40
Consumers lack confidence in using food labeling to determine if the overall product is healthy 41
Consumers find the variety of label systems confusing 42
Traffic light systems have become commonplace due to government insistence but are not yet universal 42
The EU prefers the RDA labeling system 43
Consumers may want a common system but brands and retailers are reluctant 43
Consumers are disappointed with overly vague labels 44
Consumers like the idea of simplified front-of-pack information but are also critical and wary of overly simplistic information 44
Font sizes may become too small for many consumers as the Seniors population rises 45
People with eyesight problems may struggle with the small print on labels 45
Key takeouts and implications: food labels often lack user-friendliness, which prevents labels from directing consumer choice in a fully efficient and effective manner 46
INSIGHT: Organic and ethical labels are better regulated and enjoy greater consumer confidence 47
Organic is best regulated but some organic consumers are still confused and mistrusting of product claims 48
Ethical/fairtrade products are now established grocery purchases but have many different labels 49
Choice editing by supermarkets makes the consumer choice easier by removing choice 51
Key takeouts and implications: strictly regulated organic and ethical labels gives them added credence 51
INSIGHT: Consumers have mixed feelings about 'unregulated' food label terms 52
Non-regulated terms are confusing but consumers look for both tangible and subjective terms 52
Consumers are most confused about non-legally defined terms such as 'traditional' 52
Descriptor label terms have significant appeal for consumers 53
Consumers want labels that help them avoid being misinformed 54
Key takeouts and implications: subjective terms elicit confusion, skepticism and positive perceptions in equal measure 54
INSIGHT: Country Of Origin Labels (COOL) are popular with consumers for many reasons 54
Consumers place considerable importance on knowing the origin of products 55
Origin also impacts perceived purchase intentions especially in Asia 56
'Locavorism' is less important in emerging economies 57
COOL is welcomed by patriotic consumers who perceive higher levels of quality and safety 58
Certain products are more credible if from a specific country 59
COOL labeling is subject to loophole abuse 59
Key takeouts and implications: provenance labels on food are popular for many reasons 60
INSIGHT: The desire for more information conflicts with the desire for less packaging and risks shifting the message away from pleasure and enjoyment 60
There are several contradictions in the food and drink industries that relate to labeling and packaging. Firstly, concern for the environment means that many consumers and ecological pressure groups would like to see the amount of packaging used for grocery items to be continually decreased until all products have the bare minimum needed to safely transport them to the market place and to safely store them until consumer usage. This means that the surface area available for labeling information would similarly have to decrease. Already the effects of this can be seen on certain packaged meat products where the suggested optimal cooking instructions are printed on the reverse of the exterior label so that they are hidden from view for as long as the cellophane wrapper remains in tact. This can potentially limit the desire of consumers to experiment with new cuts of meat. 60
Consumers have an increasing desire to reduce waste and minimize their packaging footprints 61
Brands face the dilemma of how to provide sufficient information and more 61
Too much label information can also detract from messages of enjoyment and indulgence 62
Key takeouts and implications: balancing complete information with less packaging is problematic as is not letting the label exacerbate feelings of negativity about eating 62
INSIGHT: A number of labeling initiatives and proposals exist across the globe 63
Country-specific origin labels exist such a Red tractor (UK) and Red label (France) 63
Freedom Foods are those which are produced where any animal-derived component is farmed in humane conditions 63
Package labels detailing carbon footprints are beginning to emerge 64
Quota based label encouraging both moderation and inclusion are common 65
Organic labels vary depending on country and certification 66
Ethical and fairtrade labels also vary nationally 67
Vegetarian choices are aided by the vegetarian society label 68
Key takeouts and implications: many labels exist around the world that could act as quality benchmarks 68
ACTION POINTS 69
ACTION: Increase consumer convenience for understanding labels 69
Make instructions as graphical as possible to add convenience 70
Facilitate the reading of labels with clear branding, use of color and linguistic simplicity 71
ACTION: Use clear labeling to support consumers dietary goals 72
Use consistent front of pack labeling to help consumers make good choices 72
Help consumers to check their nutritional balance with quota based labels 73
Support dieting and health-conscious consumers with calorie controlled portions 73
ACTION: Incorporate sensory appeal into food and drink labels 74
Follow the example of existing multi-sensory labeling 74
ACTION: Leverage technology to solve the conflicting demands of increased information and decreased packaging 75
Use online, off-package labeling to better inform consumers 75
ACTION: Use package information to reassure consumers and tell the product story 76
APPENDIX 78
Definitions 78
Methodology 78
Further reading and references 79
Ask the analyst 80
Datamonitor consulting 80
Disclaimer 80
List of Tables
Table 1: Consumer Survey: level of consumer interest in food label information, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 8
Table 2: Consumer survey: change in frequency of using nutritional information in the last six months, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 10
Table 3: Consumer survey: the extent to which European and US consumers used nutritional information on product packaging to help make food and drink choices, by country, 2006 11
Table 4: Consumer survey: agreement with the statement "there is too much choice when doing grocery shopping" in 15 countries across Europe, Asia Pacific, South America and the US, by country 13
Table 5: Consumer survey: extent of consumers' available time to read food and drink labels, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 14
Table 6: Consumer survey: extent of consumers' in-depth reading of food and drink labels, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 16
Table 7: Consumer survey: the importance attached to "diet and nutrition" in creating a feeling of wellbeing or wellness, in 15 countries across Europe, Asia Pacific, South America and the US, by gender and country, 2008 18
Table 8: Consumer survey: level of consumer interest in food label information, in 15 countries across Europe, Asia Pacific, South America and the US, by gender and country, 2008 21
Table 9: Consumer survey: change in frequency of using nutritional information in the last six months, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 22
Table 10: Consumer survey: level of consumer interest in food label information, in 15 countries across Europe, Asia Pacific, South America and the US, by age, 2008 23
Table 11: Consumer survey: the propensity to take active steps to eat more healthily more or less often, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 25
Table 12: Consumer survey: attention do you give towards the food and beverage proprieties, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, 2008 30
Table 13: Consumer survey: trust in efforts made to ensure safe provision of food and beverage products at the grocery store, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 33
Table 14: Consumer survey: trust in health and nutritional claims made by food and drink manufacturers, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 34
Table 15: Consumer survey: perceived user-friendliness of food and drink labels, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 38
Table 16: Consumer survey: level of consumer understanding of food label health information, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 41
Table 17: Over 50s nominal population (m) and percentage population by country, Global, 2002-2012 46
Table 18: Consumer survey: trust in food and beverage products claiming natural or organic ingredients, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 49
Table 19: Consumer survey: prevalence of choosing fair-trade food and drinks, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 50
Table 20: Consumer survey: preference for food and drink marketed as 'authentic', 'home-made' or 'original', in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 53
Table 21: Consumer survey: the importance attached to knowing the provenance of grocery items, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 55
Table 22: Consumer survey: influence of knowing the provenance of grocery items on purchase decision, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 57
Table 23: Consumer survey: importance of choosing locally-sourced groceries, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 58
Table 24: National initiatives to outline fruit and vegetable consumption by quotas, by country 66
List of Figures
Figure 1: Food and drink labeling must serve many purposes as a broader range of influences shape the choices that consumers make 6
Figure 2: Consumers demonstrate a high level of interest, at least attitudinally, towards label information 8
Figure 3: Globally, consumers demonstrate a high level of interest, at least attitudinally, towards label 11
Figure 4: Time poor shoppers often lack time to interpret label information 15
Figure 5: Many consumers limit their information search when using food labels 16
Figure 6: Females are more likely to associate diet and nutrition with wellbeing than males 19
Figure 7: Women are more interested in food label information than men 20
Figure 8: Young adults are slightly less interested in food label information 23
Figure 9: A directional shift towards healthy eating is clearly apparent from consumers' perception on their own eating behavior 25
Figure 10: Labels on food packaging of often the main source of nutritional content 27
Figure 11: Additional evidence also highlights that consumers are most attentive towards macronutrients such as fats, sugar, and salt 29
Figure 12: Consumers are most attentive to fat and eating from a diverse range of foods 31
Figure 13: Though more consumers trust the efforts made to ensure the safe provision of food and beverage products at the grocery store than those who don't, there is considerable ambivalence overall 33
Figure 14: Consumers are unconvinced by the health and nutritional claims made by food and drink products 35
Figure 15: A myriad of labeling symbols are competing for consumers' attention and, in some instances, adding to choice complexity 37
Figure 16: Consumers express only relative confidence in their ability to use and understand food label information 38
Figure 17: A minority of consumers feel confident they can accurately assess if a product healthy based on label information 42
Figure 18: Organic claims generally induce more trust than general health or ethical claims 48
Figure 19: Country of Origin labels often have national-specific variations 63
Figure 20: Freedom Foods are available in many countries and help to allay worries over animal welfare 64
Figure 21: Carbon footprints are likely to become the next frontier of food labeling 65
Figure 22: The '5-a-day' label is one of the easiest to understand 65
Figure 23: Many organic schemes and logos exist across the world 66
Figure 24: Ethical products have some of the most consistent labels 67
Figure 25: The vegetarian society label is also consistent 68
Figure 26: Labeling must be well executed, easy to understand and based on trust 70
Figure 27: Graphical instructions have numerous benefits 71
Figure 28: Target's prescription bottle can act as a benchmark for labeling excellence 71
Figure 29: Front of pack labeling is thought to be most effective 72
Figure 30: Five-a-day labels could help more consumers take in healthy nutrients 73
Figure 31: Clear calorie-controlled product labels should appeal to many consumers 74
Figure 32: Sensory labeling can have practical and pleasure elements. 75
Figure 33: Shot codes offer vast untapped labeling opportunities 76
Figure 34: Health conscious consumers want to know about the products they ingest or topically apply so manufacturers are making greater efforts to be transparent 77
