© FoodThink
BY ANTON XAVIER CO-FOUNDER AND CPO, LABEL INSIGHT
Mobile technology and constant connectivity has created an expectation among consumers for on-demand, specific information about nearly everything they come into contact with.
Yet, Label Insight’s Food Revolution Study, launched in June, found that consumers lack access to the information they’re looking for in order to make informed purchase decisions when it comes to the food they eat.
More than a third of respondents say they are sometimes confused by what the labels on food packages are actually saying, and nearly two in five admit they are concerned about eating products that have information on the label they do not recognise. Nearly all respondents (94%) say it is important to them that the brands and manufacturers they buy from are transparent about what is in their food and how it is made. And, more than two-thirds (83%) say they would find value in having access to more in-depth product information.
A great first step in providing transparency to consumers is through participation in the SmartLabel transparency initiative. SmartLabel allows shoppers to quickly and easily access detailed product information from their smartphone or desktop computer – from allergens and ingredients to certifications and sustainability. They can even access ingredient definitions, easing confusion and frustration.
brandsThis initiative gives brands a new touch-point to engage with consumers and provide them with the information they seek in an easily accessible and consistent format. Providing a deep level of transparency helps brands meet consumer expectations for product information and create a new dynamic of trust and long-term value.
The impact of consumer demand for product transparency on the CPG industry
Transparency plays a key role in shopper decision making and affects brand loyalty. More than 71% of consumers consider whether they have access to the full list of ingredient information for a product when making food purchase decisions, and more than half consider where the product was made.
One of the most telling data points from the Food Revolution Study provides insight into the role that access to more in-depth product information plays in the purchasing process. Product information is so important to consumers that more than a third of those surveyed said they would be willing to switch brands if another brand shared more detailed product information.
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More than a third of American consumers would trade brand loyalty for greater accountability of the food products they buy, according to Label Insight’s survey. Click here to read more…
In the CPG industry, the companies that are driving the most revenue are the ones that are motivating repeat purchases and fostering long-term loyalty. Brands have a significant opportunity to foster loyalty through product transparency. What’s more, CPG brands stand to grow market share by attracting new customers who were previously loyal to competitors, simply by providing additional product information.
How companies can update their labels to comply with changing retailer requirements
Retailers continue to ask for more granular product data from their suppliers, and this information goes far beyond what CPG brands can fit on a physical label.
Granular product data helps retailers in several ways. For example, retailers can better respond to consumer questions around food allergies, or assist those shopping based on a specific diet. In addition, several retailers, most recently Walmart, have introduced initiatives to remove certain ingredients from the products they sell. Increasingly the demand for product information transparency from the retailer is moving towards powering internal transparency so that the retailer can better respond to consumer demand for more information and knowledge.
As more and more consumers take their grocery shopping online, deep product attribution also enhances the online shopping experience by allowing them to leverage digital tools to make even more informed decisions online versus in store. Deep product attribution allows retailers to provide shoppers with answers a multitude of product search queries. For instance, shoppers could easily filter product searches to meet their dietary requirements and preferences such as nut-free, gluten-free, low sodium, paleo or sustainably sourced. The opportunities are endless when product data is available, up-to-date, and granular.
Transparency around granular product information also helps online retailers provide shoppers with more personalised experiences as they receive customised suggestions based on their specific needs. For example, if an online shopper demonstrates a preference for low-sodium, paleo or vegan products, the online retailer can help the customer along his or her decision-making process by suggesting foods that fit this priority, while also driving engagement and building trust along the way.
© FoodBev Media Ltd 2024