Consumers Hone In on Ingredients in Quest for Transparency
Transparency may be a word that denotes openness, but there remains some murkiness over what, exactly, consumers know and want to know about the products they consume. That’s one takeaway from The Center for Food Integrity (CFI) Transparency Summit 2024 held at the Loews Chicago O’Hare Hotel on Oct. 22-24.
During the first full day of the event, audience members heard from a diverse panel of five consumers who described themselves as interested in and fairly knowledgeable about food, drink and other consumables and care products. When asked what they wanted from CPGs and retailers, they said that they want to be able to find and understand information about products, including ingredients; as one female participant put it, “Ingredients we can pronounce.” Some panelists also expressed confusion over some terms and verbiage, such as “cage free” and “grass fed” and wish there was more clarity about “sell by” and “use by” dates.
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Although the consumers on hand said they would appreciate tools like on-package QR codes and want more familiar ingredient names, they also reported that they balance their desire to eat better with their cravings, as one admitted that her favorite food is a slice of branded bologna wrapped in a tortilla and topped with jalapenos. Another panelist summed it up by saying, “You can’t eat 100% clean – you do the best you can.”
As for where they spend their food dollars, the consumer focus group reported that they shop frequently at a variety of grocery stores. All of them said they divide purchases between different channels and retailers, often opting for a mix of club stores, mass merchants, large grocery chains, regional grocery banners and some independents.
Later in the event, two researchers looked through a broader lens to examine the behavior of larger groups of consumers, much of which tracked with CFI’s consumer panel responses. In his presentation, Steve Markenson, VP, research and insights at FMI - The Food Industry Association, shared that the top definition of transparency is “a complete list of ingredients” (cited by 89% of consumers) followed by “a plain English description of ingredients” (86%) and “in-depth nutritional information” (85%). In addition, FMI found that 79% of consumers are likely to seek more information by scanning a QR code and more than half (54%) are interested in more information beyond product labels.
“We asked some specific questions about loyalty to brands, and 80% said that they are more loyal to a brand that does provide that in-depth product information to them and 73% said that they're willing to switch to that,” noted Markenson.
He also affirmed the fragmentation within grocery shopping, revealing that FMI’s research shows that today’s consumers shop at multiple grocery stores and often up to five or more locations.
Sherry Frey, VP, total wellness at NielsenIQ (NIQ), shared market research showing that consumers – even as they rebound from inflation-centric shopping – are looking closer at foods and at product claims. For example, NIQ found the claims that saw the biggest growth across the store include “Eco-friendly certified,” “Sustainability certified,” “women-owed,” “renewable resource," “regenerative agriculture,” Forest Stewardship Council,” “renewable energy” and “sustainable forestry initiative certified.”
Per NIQ’s data, the claims that experienced the biggest declines across the store include broader terms like “environmentally friendly,” “farm raised,” “sustainability claim,” “bamboo,” “sustainable farming,” “’pasture raised,” “family farmed” and “water conservation,” among others.
Mickie French, CFI’s executive director, said that the consumer insights are key to farm-to-table efforts to enhance transparency and trust. “The research is clear; transparency builds trust and is vital to business growth and success. Consumers demand it and hearing directly from them in a forum that encourages open and honest dialogue will be eye-opening,” she said. “This year, we focus on giving attendees the tools and approaches to implement transparency across different stakeholder groups. Research, hands-on workshops and discussions will leave attendees prepared to implement transparency strategies in all areas of their organizations.”
Based in Gladstone, Mo., CFI is a science-based organization that works to build trust across the food and agriculture value chain by providing industry-leading research and resources, consumer insights, emerging trends and food issues management solutions. Other speakers at the summit included the director of cattle management and procurement at Walmart, a soybean farmer from Arkansas, a transparency lead from Bayer Crop Science and a policy communications director at The Coca-Cola Co.
