The global clean-label ingredients market is projected to reach $212.4 billion by 2035, according to a report by Future Market Insights.
Heightened awareness of the health risks of artificial preservatives has fueled much of this growth, increasing demand for minimally processed foods.
Renee Guilbault shared her insights on these developments with FI as the CEO of The Open Food Company, the parent of Harry’s Famous.
“We’ve seen demand for clean-label products steadily growing for the last few decades, as consumers have become more aware of organic versus conventional growing practices and the impact of consuming highly processed foods on health,” said Guilbault, who witnessed the rise firsthand when she was directing Le Pain Quotidien’s F&B operations in the mid-2000s.
“We were the first USDA-certified organic bakery wrapped in a rapidly expanding fast-casual concept, and our customers wanted assurances that the food they were consuming was good for them – nutritious, fresh, and real,” she explained.
A Balancing Act
Although both the demand and interest in clean-label products are high, so is the cost, which can be challenging for cash-strapped U.S. consumers, whose confidence plunged seven points in February, according to the Conference Board.
However, Guilbault has noticed that consumers are “getting creative with how they spend their grocery budgets,” with many forgoing restaurants in favor of cooking at home.
Saee Pansare, a product manager for DoorDash who’s also worked for the likes of Whole Foods and Amazon Fresh, has noticed a similar phenomenon.
“Health-conscious customers are willing to pay extra for healthy items and will find other opportunities to manage their budget, such as switching to store-brand items, trying to find deals for non-food grocery categories, buying in bulk, or cooking more at home,” Pansare said.
“My advice to food manufacturers would be to get away from single-claim marketing strategies,” Pansare shared, who added that modern consumers want to understand the bigger picture regarding health and are increasingly relying on nutrition labels over front-of-package claims.
This has prompted many to realize that their favorite products aren’t as healthy as they once believed – and they’re holding companies accountable.
Case in point, Courthouse News Service recently reported that a class-action lawsuit is underway against Nature’s Bakery after a judge ruled the manufacturer’s claims of its fig bars being “wholesome” – despite containing 14 grams of added sugars – could mislead consumers.
And currently, the Department of Health and Human Services is determining its final rule on the definition of “healthy” on F&B packaging; however, the agency recently extended the deadline to April 28 due to the Trump administration’s freeze on new rule proposals.
To Dye For
Artificial food dyes have also come under fire following the FDA’s Red Dye No. 3 ban, which will take effect in January 2027.
While board-certified pediatric dietitian Katie Drakeford told FI that the evidence regarding the harms of consuming food dyes is “inconclusive,” she added that they offer “no nutritional benefit” and often lead consumers “further away from more natural foods that are minimally processed and more nutritionally complete.”
This is especially true with products developed for children.
“Moms who buy Wonder Woman cakes for their little girls aren’t thinking, ‘These bright colorings aren’t safe.’ They’re thinking, ‘How can I delight my treasured child on her birthday and make it special?’” added Guilbault.
Though Guilbault acknowledges how difficult it can be for F&B companies to stand out in today’s world, she challenges leaders to find “real opportunities to drive clean-label messaging with more transparency around their products.”
“Bottom line: Nutrition matters probably more than anything – and the companies that are developing products with nutritional value will stand out as consumers continue to deepen their understanding.”
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