American consumers value transparency in food and drink products, with more than one-third saying they would trade brand loyalty for greater accountability, according to a new study from Label Insight.
Increased demand for product transparency is motivating brands and manufacturers to provide in-depth product information. Only 12% of consumers rank brands as their most trusted resource for information about what is in their own food, but 67% believe it is the brand or manufacturer’s responsibility to provide consumers with this information, demonstrating a clear gap between consumer expectations and the information brands are currently providing.
The study surveyed over 1,500 consumers to discover how they make food choices, how they shop and what they expect from brands in terms of product information.
It has revealed that brands that meet customer expectations for product information and deliver product information instantly develop a greater dynamic of convenience, trust, and long-term value among their consumers, Label Insight said.
“We’ve reached a point where consumers have much higher expectations for transparency about what is in their food,” said the company’s CMO, Patrick Moorhead. “Consumers have been demanding more and more information from brands in every sector of the market, and food companies are finally realising how important it is to provide that information.”
The research in brief:
81% of respondents have consumed a packaged product with an ingredient they didn’t recognise at some point in the past month
Nearly all respondents said that it is important to them that the brands and manufacturers they purchase products from are transparent about what is in their food and how it is made
More than 80% said that they would find additional value in having access to more extensive product information.
37% said that they would switch brands if another brand shared more detailed product information.
“Retailers are facing an increasing demand in terms of providing product information, and many are seeing their long-term customers jump ship to competitors who provide more information,” continued Moorhead. “This presents an opportunity for new brands to gain market share, but also for established brands to secure loyalty by opening up about their products.”
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