CON NECT Clean Label: The 2020 guide to an evolving trend
Learn more about Fi Europe CONNECT:
fi-europe.com
Contents How is clean label evolving? What does this mean for clean label ingredients in 2020 and beyond? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Healthy eating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Provenance and transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Fewer and more recognisable ingredients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Naturalness and ultra-processed foods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Key takeaways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2
| L earn more about Fi Europe CONNECT: fi-europe.com
How is clean label evolving? What does this mean for clean label ingredients in 2020 and beyond? Clean label is a concept that continues to evolve in its meaning and relevance to consumers. It has come to be most closely associated with ideas such as simplicity, and more natural and recognisable ingredients. However, unlike other trends such as organic, clean label remains harder to pin down and to clearly attach products and consumer buying habits to. We know through certification schemes, for example, what organic means, and we also know and can follow the evolution in consumer demand for it. In contrast, clean label remains more elusive, as are some of the terms associated with it such as natural; which also has no clear definition. For now, clean label encapsulates the desire from consumers to purchase food they believe they can trust, that is somehow close to nature, and that contains familiar sounding, rather than artificial, ingredients. The actual word ‘clean’ is hardly ever used; however, recently it seems the idea of clean label has evolved to also encompass the idea of sustainable sourcing and provenance. Emma Schofield, Senior Analyst, Global Food Science at Mintel says:
“Consumers create their own definition of what 'clean' means to them. The word 'clean' is scarce on food and drink labels. Instead, consumers look for attributes and claims that they link to 'clean label’ or 'clean eating', such as organic, natural, and increasingly, claims relating to a brand's 'clean conscience'.”1 As a concept, clean label is in a continuous state of evolution as consumers’ expectations and interests change. The associated meaning also varies between different people, countries and categories.2 In Russia, for example, clean label is more closely associated with no GMOs to consumers.3 While in Western Europe, it has been more associated with less and simpler ingredients and avoidance of artificial ingredients such as ‘E numbers’. In some markets, 'no artificial ingredients' is already becoming an expectation rather than a selling point.4 According to shopper research company Nailbiter, 1 out of 6 customers mention that for them, the ingredients are a reason to buy a product. Consumers are much more vigilant about the content of the products they buy, they look at ingredient lists from different angles: simplicity, transparency, clarity and familiarity.5
Clean Label: The 2020 guide to an evolving trend | 3
Ingredients are key to understanding the Clean Label Trend
Source: Nailbiter5
As consumer expectations in Western Europe evolve, so in turn, do their expectations for the clean label category. A similar pattern occurred with regards to the reduced sugar trend, where there is now almost an expectation of lower or no added sugar.6 It is the same for artificial ingredients like additives; the clean label trend has driven an expectation from consumers that food and beverage products will have lower or no artificial ingredients.1 Emma Schofield, Senior Analyst, Global Food Science at Mintel says:
“Europe is often cited as being the home of the clean label trend, and leader in clean label innovation. For European consumers, clean label attributes such as ‘no artificial colours’ is an expectation, not a selling point.”1
insights.figlobal.com 4
| L earn more about Fi Europe CONNECT: fi-europe.com
Healthy eating One trend that continues to evolve around food and beverage, is providing a health benefit. According to Mintel, 46% of UK consumers associate clean label products with ‘good for you’ and 24% with ‘highly nutritious’.7 ‘Clean’ has become an eating pattern and resonates positively with consumers on health and nutritious grounds.
UK: qualities associated with ‘clean eating’ diets, % of customers who agree, Nov 2018 46
Good for you 30
Expensive 24
Highly nutritious
23
Hard to follow long-term
22
Good for weight management 20
Trendy Good for the environment
19
Limited range of foods
19
Boring
13
Energy-boosting
13
None of these
13 2
Bad for you 0
Base: 2,000 internet users aged 16+
Source: Mintel GNPD7
5
10
15
20
25
30
35
40
45
50
The COVID-19 pandemic, which is most threatening to people with various underlying health conditions often associated with poor dietary habits, has prompted consumers to examine their health more closely. It will also, according to analysts, amplify consumers’ search for healthy products and functional foods that might assist them in improving their health. Mintel has been tracking consumer attitudes during the pandemic, and during a survey conducted between 28 May and 4 June 2020, it found that 36% of US adults considered eating healthy to be a higher priority since the COVID-19 outbreak, with only 8% saying it was a lower priority.8
Clean Label: The 2020 guide to an evolving trend | 5
Stephanie Mattucci, Associate Director, Global Food Science at Mintel says:
"Clean has become the new healthy. Producers can explore attributes that consumers link to 'clean', such as minimally processed and free-from."9
Source: Mintel GNPD10
Lima Glutenvrije Havervlokken met Matcha en Spirulina (Gluten-Free Oat Flakes with Matcha and Spirulina) can be used without cooking. This fibre rich, express product contributes to lower cholesterol, is a source of protein and is made without added sugars. Ingredients: gluten free oat flakes* (99.5%), matcha powder* (0.3%), spirulina powder* (0.2%). *organic However, while consumers do want to eat more healthily, many are not willing to spend time in the kitchen cooking. Katharina Bagul, Industry Manager for Food and Nutrition at Euromonitor International says:
“From our surveys we have found that young people in particular, prefer to do other things to cooking from scratch. So, this is where manufacturers need to innovate and see if they can produce products that are a little less processed and healthy and convenient.�11
Source: Mintel GNPD12
This vegetarian product is made with 100% natural ingredients, is a source of protein, and contains one out of five of the recommended daily fruit and vegetable portions. It is ready in eight minutes in the pan or in the microwave, and retails in a 350g pack bearing preparation instructions. Ingredients: bulgur (24.4%), spinach (17.14%), yellow carrots, chickpeas, grilled zucchini (zucchini, sunflower seed vegetable oil), water, tomatoes, extra virgin olive oil, salt, rice starch, chili, ginger.
6
| L earn more about Fi Europe CONNECT: fi-europe.com
Provenance and transparency Another evolving clean label trend is around provenance and transparency, with supply chain traceability and blockchain continuing to develop. Bagul says that some consumers do value this if they can trace it back to the farm or wherever it comes from.11 Consumer surveys in Europe have also found close associations from respondents between local and more natural foods.13 The next step for provenance and transparency is likely to move beyond ingredients. In the future, producers need to look to ensure how they run their business, how their ingredients are produced and under what conditions they are also up to higher ‘clean image’ standards. Emma Schofield, Senior Analyst, Global Food Science at Mintel says:
“Shoppers think critically about the types of food production they want to support. In future, consumers will not just seek clean labels but will seek brands with a 'clean conscience'. In markets like Europe, where naturalness and clean label are most advanced, producers will need to progress from becoming producers of clean label ingredients, to a brand with a clean conscience.”14
Source: Mintel GNPD15
Clean Label: The 2020 guide to an evolving trend | 7
Provenance might be even more important now due to the Covid-19 pandemic, explains Julian Mellentin, Director at New Nutrition Business.
“Covid-19 has mostly accelerated trends that were already there. For example, from direct-to-consumer (D2C) business to the growing consumer interest in provenance and more local products and ingredients, this change has been gathering pace since about 2008. Even the biggest companies have embraced it, with giants like Danone marketing products with locally sourced ingredients, such as its Fruits d’Ici (translation: Fruits from here) yoghurt brand. For many consumers locally sourced – or some other clear provenance – means sustainable and a ‘provenance’ strategy is one way to deliver sustainability now, and also address consumer concerns.”16
Source: Mintel GNPD17
Woody’s Free Range Traditional Maghrebi Spicy Goat Merguez Sausage is made from 100% New Zealand goat meat combined with juicy free-range pork fat, harissa and a blend of spices. According to the manufacturer, the goats are born and bred outdoors with guaranteed provenance and are ethically raised. Ingredients: free range goat, pork, rice flour, potato starch, salt, harissa (preservative(202)),onion, tomato, herbs, spices, chilli, garlic, acetic acid, ascorbic acid (vitamin C).
8
| L earn more about Fi Europe CONNECT: fi-europe.com
Fewer and more recognisable ingredients Consumers are taking more and more interest in what is in the food they purchase. Survey data from Euromonitor has found that a quarter of consumers in France closely read the label of food and drink before consuming - in the UK the figure is 19%.18 As a consequence major food brands are looking to reduce the number of ingredients they use or to substitute unfamiliar sounding ingredients with easy to recognise ones. Agnes Martin, Health & Diet Advocacy Director at Danone says:
“I can understand that when consumers see a recipe with ingredients they don’t recognise, it can create fear. What we have started to do is try to simplify our recipes as much as possible and to name ingredients in a way that consumers can recognise them. Instead of putting citric acid, for example, we are replacing that ingredient with citrus juice, which gives exactly the same functionality but using a name people can recognise. This is the way we as an industry have to go. Less and easier to recognise ingredients.�19 Mintel also urges brands to use processing techniques that resonate with consumers as being artisanal, small-batch, traditional and authentic, rather than industrial or heavily refined.20 And that also means using recognisable ingredients already known to consumers, says Rick Miller, Associate Director, Specialised nutrition, Mintel.21 Source: Mintel GNPD 22
Innocent Unsweetened Coconut Dairy Alternative. Made with just five ingredients including creamy coconuts, rice, spring water, plant fibre and a touch of sea salt. Free from additives, artificial stabilisers and refined sugar.
Source: Mintel GNPD23
Contains 75% yogurt and 25% fruit and is claimed to be the first commercially available yogurt to have absolutely zero extras (e.g. sugar and additives) added to the natural ingredients. It has taken Arla seven months to create the correct taste and texture. Positioning claim: Arla's new yogurt fits perfectly with today's focus on clean eating. In the UK, 46% of adults agree that clean eating is good for you, which is higher than the 23% who believe plant-based diets are good for you.
Clean Label: The 2020 guide to an evolving trend | 9
Naturalness and ultra-processed foods The clean label trend and consumer desire for more natural ingredients and less heavily processed ones has been accelerated by studies linking the consumption of ultra-processed food with non-communicable diseases, such as cardiovascular diseases and diabetes.24 Katharina Bagul, Industry Manager for Food and Nutrition at Euromonitor International says:
“Media coverage of the dangers to health of ultra-processed foods has raised a little bit of awareness of them amongst consumers. And there is increasing demand for freshness not only in restaurants, but also when it comes to cooking at home and avoiding additives and industrial products. It’s driving the clean label trend.”25 For the plant-based foods category, consumer fear of processing creates a dilemma as many meat and dairy alternatives are heavily processed and with long ingredients lists. Bagul adds:
“Plant-based is seeing strong growth rates, but some of the meat substitutes like burgers have quite long ingredient lists and are quite processed. This is a bit of a controversy with the desire for more natural and clean labels. It will be interesting to see in the future how many brands address this and if they find solutions with more natural and shorter ingredient’s list.”25 According to a Mintel report, almost one-third of French consumers surveyed agreed that processed plant protein food (e.g. soy burgers) are just as bad for you as processed meat (e.g. beef burger).26 This creates opportunities for manufacturers to provide solutions for consumers seeking clean label attributes like naturalness, fewer ingredients and less heavily processed food in the plant-based category. Emma Schofield, Senior Analyst, Global Food Science at Mintel says:
“Producers of plant-based dairy and meat alternatives need to be mindful of where their products fit on the scale between processed and unprocessed. Consumer interest in clean label is likely to drive demand for natural and plantderived ingredients and additives that deliver textures in food and drink. 'Real' food ingredients such as dried fruit, nuts, seeds and grains should also prove popular with consumers who seek exciting textures delivered naturally.”27
10 | L earn more about Fi Europe CONNECT: fi-europe.com
Source: Mintel GNPD28
Lundberg Family Farms Organic Grainspirations Beans & Greens Rice & Quinoa Bowl comprises brown basmati rice mixed with tri-colour quinoa, garbanzo beans, kale, onion and spices, seasoned with lemon, oregano and pepper. It is said to be thoughtfully crafted with the finest organic ingredients and flavours from around the world, containing 11g fibre and 10g protein, and is described as gourmet convenience. The microwaveable, USDA organic certified and vegan product is free from GMOs and gluten, is made with wholegrain, and retails in a 9-oz. pack featuring preparation instructions. The manufacturer claims to be committed to organic farming practices that benefit the entire ecosystem, leaving the soil, plants, water and wildlife better, and also claims to be living such core values as integrity, sustainability, responsibility and authenticity cooked brown basmati rice*, cooked tri-colour quinoa*, cooked garbanzo beans*, kale*, onion*, high oleic sunflower oil*, seasoning blend* (sea salt, garlic powder*, oregano*, garlic*, lemon juice powder* (maltodextrin*, lemon juice*), sunflower oil*, black pepper*, chili pepper*, lemon peel*, rice concentrate*, thyme*, parsley*, citric acid). *organic
Sustainability While sustainability appears to have dropped down the list in consumer priorities during the Covid-19 pandemic, this is only likely to be a short-term blip.29 Two-thirds of consumers are open to changing their eating habits for the environment, with limited choices of sustainable options one of the barriers cited by respondents in a survey.30 It is clear that the concept of clean label is one that is closely associated with eating more sustainably in the eyes of consumers. The same EU-wide survey found that for some consumers eating sustainably means choosing foods that are ‘minimally processed, traditional’.30 Source: Elly’s WUNDERLAND31
“Your organic farmer's bread baking mix. Completely natural, without artificial additives, artificial flavours or colours, flavour enhancers or preservatives. Only a little water is necessary to preserve the great aroma of dried organic whole rye sourdough and Austrian Alpine salt from ehrenwort. To ignite moments of pleasure. Then your dough can rest in the container for half an hour, super easy! Did you bake your bread and want to dispose of the packaging? No problem. It is compostable, so you are doing something good for the environment. You are also welcome to keep them and reuse them as storage jars or gift packaging! Super practical and purely organic. SIMPLE, WONDERFUL, CHANGEABLE.”31 According to Mintel: “it exemplifies several Mintel Trends, e.g. consumers' desire for local food Locavore) and products that have a stamp of authenticity (The Real Thing). Consumers are also looking to brands to reduce the use of throwaway plastic packaging (Rethink Plastic). In Germany, 62% of adults are more concerned about packaging waste than a year ago and 50% are more likely to recycle packaging.”32
Clean Label: The 2020 guide to an evolving trend | 11
One of the ways of delivering sustainable and natural ingredients for clean label products could be found in upcycling. According to the United Nations' Food and Agriculture Organization, one third of the food that is produced for human consumption is wasted, with vast quantities lost at every stage in the supply chain.33 Not only is this a tremendous waste of resources, but organic material that is not properly handled can cause pollution, greenhouse gas emissions and constitute a public health hazard. In a bid to reduce waste from across the food system, innovators are exploring industrial by-products as sources of natural food ingredients. Coffee grounds are among the by-products that have proven most interesting to date. Caffelnk, a finalist in the Start-up Innovation Challenge at Fi Europe 2019, has found a way to extract brown, ochre, and beige colourants from grounds.34 Danish start-up Kaffe Bueno, meanwhile, upcycles spent coffee grounds for use as nutritious ingredients for wellness products.35 The Coffee Cherry Co also uses coffee by-products; but in this case, the skins of the coffee fruit which it buys from farmers, dries, mills, and wells; as a high-fibre antioxidant for bakery, beverage and confectionery applications. As well as reducing waste, this has social sustainability benefits by bringing a new income stream to farmers.36 De-fatted seeds, the by-product of oil production, are another material of interest. Planetarians' patentpending technology uses thermomechanical engineering to turn de-fatted sunflower seeds into 50% protein concentrate and 35% protein flour — and it is experimenting with other waste materials, such as coffee grounds, orange peel, fruit and nut pulp.37 Linnolat, a start-up that was accepted into the European Institute of Innovation and Technology (EIT) Food accelerator in 2019, uses defatted hazelnuts, coconuts, and sesame seeds as a vegan alternative to milk and white chocolate (both of which require considerable quantities of milk protein).38 Spent brewers' yeast is the starting material for New York-based, Rise Products, which developed a patentpending technology to create nutritious bakery ingredients.39 Dutch start-up FUMI Ingredients uses spent yeast for a very different purpose, as the source of an egg white substitute with impressive foaming and binding properties.40 It is not only innovative start-ups that are exploiting the potential of by-products, however. Established companies, too, are in on the action. In January 2020 the EU Smart Protein project began at the School of Food and Nutritional Science at University of Cork, involving 33 industry partners (including Barilla, AB InBev, ProVeg International). Funded to the tune of €8.2 million under Horizon 2020, with an additional €1 million coming from industry, the project is exploring how the by-products produced during pasta, bread and beer production can be tapped to make microbial biomass proteins for plant-based meats, fish, sea-food, cheese, infant formula, dairy, and baked goods.41
12 | L earn more about Fi Europe CONNECT: fi-europe.com
Source: ReGrained 42
ReGrained rescues the nutritious grain created every time beer is brewed. Powered by patent-pending tools and culinary creativity, we elevate this overlooked but awesome ingredient to the hero status it deserves with our award-winning upcycled nutrition bars, puffs and premium ingredients.
Source: WTRMLN WTR43
Cold pressed watermelon juice from discarded watermelons.
Another important clean label point of focus is sustainable sourcing. Over the last decade, many ingredients firms have developed innovative sourcing strategies that are geared towards securing longterm supply of essential inputs, of high quality and at stable prices, via transparent supply chains. Often this means 'vertical integration' or working directly with producers or cooperatives (sometimes in partnership with trusted local operators or non-governmental organisations), and ensuring producers are paid fairly. But beyond remuneration, they also help ensure producers have the technical expertise and/or equipment to maximise yields, while adhering to sustainable agricultural practices. For many companies, sustainable sourcing comes with a side order of investment in the wider community, via initiatives to improve social wellbeing, health, education, or infrastructure. In helping ensure farmers' families and communities thrive, they reduce the likelihood of farmers ending their activity and seeking better conditions elsewhere.
Source: Mintel GNPD44
Bellucci Organic 100% Italian Extra Virgin Olive Oil is made with olives from the 2018-2019 harvest season and is crafted predominantly from Biancolilla, Nocellara and Cerasuola olives from small family groves, which are pressed using cooperative mills. The finely crafted, fresh Italian oil is described as full of flavour, healthy-loving oleic acids and peppery antioxidants, and is third-party certified by Bureau Veritas, which is said to ensure its authenticity. The kosher and USDA Organic-certified premium product is free from GMO and gluten, and retails in a recyclable 16.9-fl. oz. pack bearing the USDA Organic, NonGMO Project Verified, Gluten-Free and Bureau Veritas Certification logos, and featuring the ISO 22005 certificate. The manufacturer is stated to use blockchain technology to bring deeper insight and accountability to the journey from grove to grocer.
Clean Label: The 2020 guide to an evolving trend | 13
Key Takeaways • Clean label is a consumer-driven trend towards fewer and more natural ingredients. • The Covid-19 pandemic has amplified existing health trends and created opportunities for clean label concepts such as minimally processed, especially in the convenience category. • Clean label is no longer just about the food. Consumers want to know that the company behind the food or beverage product also has a 'clean' image. • Health scares around ultra-processed foods are driving consumer interest in more natural ingredients and less heavily processed foods, also in the plant-based foods category. • Sustainability is driving consumers towards clean label trends, with some consumers defining minimally processed foods as a more sustainable food choice. • Upcycling waste streams might deliver great clean label options of natural and sustainable ingredients. • Sustainable and just sourcing is becoming more relevant for brands presenting themselves as having clean label offerings.
The information provided here was compiled with due care and up to date to the best of our knowledge on publication.
14 | L earn more about Fi Europe CONNECT: fi-europe.com
Sources 1
Mintel in interview with Fi Global Insights https://bit.ly/Mintel-the-evolution-of-clean-in-food-and-drink 3 Euromonitor interview with Fi Global Insights 4 Mintel and Euromonitor in interview with Fi Global Insights 5 Fi Europe 2019, Luke Orphanides, Nailbiter, ‘How shoppers think about clean label & better-for-you foods by Nailbiter.ppt’ 6 https://www.theconsumergoodsforum.com/blog/consumers-expect-a-healthier-future/ 7 https://bit.ly/Mintel-the-evolution-of-clean-in-food-and-drink 8 Mintel’s Global COVID-19 Tracker for the week of May 28 – June 4, 2020 9 Mintel in interview with Fi Global Insights 10 https://www.gnpd.com/sinatra/recordpage/7294839/ 11 In interview with Fi Global Insights 12 https://www.gnpd.com/sinatra/recordpage/7090779/ 13 http://www.beuc.eu/publications/most-eu-consumers-open-eat-more-sustainably-face-hurdles-new-survey-shows/html 14 Mintel in interview with Fi Global Insights 15 https://bit.ly/Mintel-the-evolution-of-clean-in-food-and-drink 16 https://bit.ly/Sustainability-driver-of-innovation-e-magazine 17 https://www.gnpd.com/sinatra/recordpage/7832039/?utm_source=fed_search 18 Euromonitor interview with Fi Global Insights 19 In interview with Fi Global Insights 20 https://bit.ly/Mintel-the-evolution-of-clean-in-food-and-drink 21 https://insights.figlobal.com/health-wellness/how-covid-19-shifting-demand-health-ingredients 22 https://www.gnpd.com/sinatra/recordpage/6532639/ 23 https://clients.mintel.com/innovative-product/arla-ko-kun-yogurt 24 https://bit.ly/packaged-food-2020-food-regulation-and-ultra-processed-food-webinar-euromonitor 25 In interview with Fi Global Insights 26 https://bit.ly/Mintel-the-evolution-of-clean-in-food-and-drink 27 In interview with Fi Global Insights 28 https://www.gnpd.com/sinatra/recordpage/6046807/?utm_source=fed_search 29 https://insights.figlobal.com/health-wellness/how-covid-19-shifting-demand-health-ingredients 30 http://www.beuc.eu/publications/most-eu-consumers-open-eat-more-sustainably-face-hurdles-new-survey-shows/html 31 https://www.ellyswunderland.at/produkt/bio-bauernbrot-backmischung/ 32 https://clients.mintel.com/innovative-product/elly-s-wunderland-organic-farmhouse-bread-baking-mix 33 http://www.fao.org/food-loss-and-food-waste/en/ 34 https://caffeink.net/ 35 https://www.kaffebueno.com/ 36 https://coffeecherryco.com/ 37 https://www.planetarians.com/ 38 http://www.agraalimentation.fr/eit-food-acceleration-network-annonce-ses-laur-ats-2019-art455213-2.html 39 https://www.riseproducts.co/about 40 https://www.fumiingredients.com/ 41 https://cordis.europa.eu/project/id/862957 42 https://www.regrained.com/pages/about-us 43 https://wtrmlnwtr.com/story 44 https://www.gnpd.com/sinatra/recordpage/6727699/?utm_source=fed_search 2
Clean Label: The 2020 guide to an evolving trend | 15
Learn more about Fi Global insights:
insights.figlobal.com
