The Growing Demand for Natural and Transparent Food Products in India
From the onset of this decade, people from across the world have been paying more attention to what they are eating or consuming. Literally, as consumers, WE not only have a better understanding of what we consume that’s impacting our health but also how we live. It all began maybe in the past decade, but the need to eat clean is now spreading faster across the globe, and people have now started feeling the need to take a closer look at what is inside their foods to better understand what they were eating. That is what has ultimately led to the ‘Clean Label’ Movement.
Pick up any food item today and you’ll see words like preservative (211), thickening agent (1442, 415), and this example is picked up from the back label of a ketchup packet! What are these ingredients, and what are these numbers? Why do foods need an additional binding agent, like this ketchup? You know what these preservatives or even the binding agent they are made from are? How are these made? Do they have any long-term effects on your health? There are many such questions that start popping up if you ever read the back label of any packaged food product.
This is where clean labels come into the picture. Basically, the idea behind a clean label is nothing but the result of a few basic but extremely important factors.
1- A product that’s minimally processed with a minimum number of ingredients that is easy to understand
2- These ingredients are usually ones that stay as close to nature as they were intended to be without any additional lengthy processing of these ingredients themselves.
3- No preservatives, emulsifiers, flavouring agents, or other such additives are usually used.
4- All information (ingredients, calories, etc.) is displayed in an easy-to-read and simple format to ensure that the consumer has all the necessary details to better understand what’s inside the product they are choosing.
5- The serving size is taken on an actual basis and not on an assumption basis. It’s important to take into consideration the realistic quantity that someone would consume of a product and not a smaller quantity just to make the numbers like “calories per serving” seem more attractive.
6- The nutritional table is positioned in an easy-to-read manner with easy-to-read size letters.
The clean label movement has also been shown by researchers to be a driver of conscious consumption since more consumers trust food products that have information such as ingredients, nutritional values, realistic serving sizes, and the calorie intake per serving mentioned clearly and in easy-to-read formats.
Thus, when a brand is transparent upfront about the ingredients that are used to make their products and how much nutritional value their consumers will get, it has a reasonable shelf life in the consumer’s kitchen.
Present scenario
78% of global consumers are willing to pay more for products with clean labels and natural claims, irrespective of costs, according to the latest wave of Ingredion’s proprietary global consumer research (ATLAS 2023).
The research collected in December 2022 and published on January 23 compiled insights from 14,000 consumers across 30 countries. Of those willing to pay more, nearly half of the consumers (46%) would pay 20% to 30% more for products carrying a natural claim. The additional amount many are willing to pay for a natural claim is more than enough to justify the additional resources needed to create or reformulate products with clean labels.
In fact, the trend is an eye-opener for manufacturers and/or retailers to generate “significant profit margins and a very strong value proposition.”
The research further reported that there is a 40% net gain in consumers wanting products only made with natural ingredients, a 43% gain in those checking labels, and a 29% net gain in those looking for products with no artificial ingredients.
Despite the positive trend in ingredients with a natural claim, for the industry to meet rising consumer demand for clean label options, it isn’t as easy as simply swapping a particular ingredient in the product with one that is more attractive to consumers
Rather, it is vital to strategically reformulating products with shorter lists of natural ingredients, which can create an opportunity for brands to add more of what consumers are looking for. Such as health-plus benefits, such as gut health, dietary fibre, and immunity support, as well as sustainability and lifestyle claims.
Two ingredients that Ingredion’s ATLAS survey showed were gaining popularity between 2020 and 2023 were rice flour, a basic ingredient that is multifunctional in effectively replacing undesirable modified starches across a wide range of products with familiar ingredients. Additionally, citrus fibre can deliver the health boost of fibre as well as act as a stabilizer or emulsifier that can replace less desirable and often more expensive hydrocolloids. To better understand which combinations of ingredients, claims, added benefits, and attributes consumers are willing to pay more for.
The Asia Pacific region reports greater than 50% conversion to clean label formulations across its product portfolios. In the next 2-3 years, an additional 15% of product portfolios are projected to convert to clean labels as well. The finding also revealed that partnerships between R&D, procurement, and marketing proved to be a key factor in successful conversions to clean label.
A rising wave of clean label brands in India
Between 2020 and 2025, the clean label food market in India is expected to grow by about 7.5%, which is the highest growth rate amongst all countries in the APAC region, driven by the market’s now apparent inclination towards health-oriented and sustainable products.
Clean label is a growing trend in the food industry, and the Indian food industry is no exception. The term “clean label” refers to a food product that is made with simple, recognizable, and natural ingredients. Here are some clean label trends that are currently prevalent in the Indian food industry:
Natural and Organic Ingredients:
Consumers in India are increasingly demanding food products made with natural and organic ingredients.This has led to an increase in the use of natural sweeteners, such as honey, jaggery, and dates, in place of artificial sweeteners. Organic produce and ingredients are also becoming more popular.
Reduction in Additives:
Consumers are looking for food products that are free from artificial flavours, colours, and preservatives. As a result, food manufacturers are reducing the use of additives and opting for natural alternatives.
Transparency in Labelling:
Consumers in India are becoming more aware of what they eat, and they are demanding transparency in food labelling. Manufacturers are responding by providing more information on their product labels, including the origin of ingredients and nutritional information.
Plant-Based and Vegan Foods:
There is a growing trend towards plant-based and vegan foods in India, which has led to an increase in the availability of clean label plant-based and vegan food products.
Clean Snacking:
Clean snacking is gaining popularity in India, with consumers looking for healthy and natural snacks that are free from additives and preservatives.
As a matter of fact, consumers are increasingly becoming aware of the importance of choosing the right products for their nutrition. They are questioning a product’s sourcing and ingredients and whether they have any ramifications for the user or the environment. But the market is overrun with a vast surplus of products filled with harmful chemicals that have various side effects on the end-user.
The conscious customer of today wants to settle only for products that are safe. Therefore, we are witnessing a steady influx of clean-label food brands in the country that are dedicated to raising the bar in terms of purity and product quality.
Now several companies in India (like True Element and FreshToHome) are galloping towards the exclusive use of top-drawer ingredients and sustainable methods in formulating food products that can be recognized as clean label products.
Allied Market Research estimates the global market for clean ingredients to reach USD 64.1 billion by 2026, up from the current USD 38.8 billion. In India, the clean label trend is on the rise, and the market will continue to grow in the coming years, too.
There are organisations like the Clean Label Project (a US-based non-profit organisation) that follow stringent methods before awarding clean label certification to consumer products. Through actual retail sampling and testing, the Clean Label Project has managed to institute evidence-based benchmarks to identify the world’s best products by optimising data and science as opposed to just marketing.
The newly-arising faction of enlightened and eco-conscious users across India and the world solemnly swear by the benefits that are offered by this groundbreaking new wave of clean label brands. No wonder; the commercial and conventional brands have no option but to make a similar transition or face extinction.
As organisations in the country strive to offer only the best products that are certified clean, they are also indirectly nudging the masses towards heightened market awareness and the use of only high-quality products.
This will prove instrumental in raising quality standards and product benchmarks around the country, as consumers will finally have the opportunity to experience products and services that are clean and uncompromised.
The emergence of clean label companies will also impose a crackdown on many commercial firms selling dubious products across India and the world. Some companies in India are ostensibly cashing in on the clean-label wave that is spreading fast across the globe. This new league of cruelty-free, organic, and vegan brands is also quite vocal in creating their brand fable around their clean-label certification and pristine operational philosophy.
The clean label revolution will grow further in India and will also see newer products and categories being launched. Categories like clean proteins, plant-based vitamins, and minerals good for health and immunity have seen a high adoption rate among consumers.
True Elements becomes India’s 1st food brand recognized as ‘Clean Label’
True Elements, amongst India’s leading healthy breakfast & snack start-up brands, is now certified ‘Clean Label’ by the Clean Label Project, US. Anchored on the promise of providing ‘Food that DOES NOT lie to you,’ this certification is a testament to the brand’s commitment to consumer health and delivering taste without any ingredient-driven compromises or adulteration. With the new certification, True Elements becomes the only Indian food brand to be globally recognized as both ‘Clean Label’ and ‘100% Wholegrain’. These coveted accreditations are awarded by leading US-based non-profit organizations, Clean Label Project and Whole Grains Council, respectively, who are known for raising the bar globally on food nutrition, food safety, and consumer transparency.
These stamps of credibility provide fact-based reassurance to consumers and are a testament to the brand’s philosophy of creating a world where promises and claims aren’t made up of lies or jargon and where 100% of its taste is achieved with 0% chemicals, 0% preservatives, and 0% added sugar.
The Clean Label Project tests rigorously for over 130 toxins and harmful contaminants, including heavy metals, antibiotics, BPA and BPS (plasticizers), and pesticide residues. This certification allows True Elements to be a part of the solution that addresses the growing consumer concerns around industrial and environmental contaminants and toxins in packaged food.
True Elements is among India’s first clean-label nashta (breakfast and snacks) brand, which makes ‘Food that DOES NOT lie to you’. Since its inception, True Elements has strived to create a world where promises are 100% true and where 100% taste is delivered with 0% jargon, 0% chemicals, 0% preservatives, and 0% added sugar.
The brand offers a variety of healthy breakfast and snack options ranging from breakfast cereals, oatmeal, granola, muesli, flakes, seed mixes, on-the-go snacks, ready-to-cook, and ready-to-eat offerings.
With an ARR (Annualized Run Rate) of Rs. 70 crore and being one of the first brands to effectively reduce the carbon footprint of their products, True Elements is reviving the ethos of homegrown food businesses and being a responsible, sustainable, and conscious start-up.
Clean label drive
Interestingly, clean label is neither a scientific term nor a term standardized by regulated food authorities like the Food Safety and Standards Authority of India (FSSAI). Clean labelling has many definitions but can be summarized as simple and transparent labelling that helps consumers understand key constituents of the foods they consume. The Clean Label approach involves using natural and familiar ingredients that are easy to recognize and free from synthetic chemicals, artificial flavours, or colours. While most households still enjoy fresh, home-cooked meals, evolving lifestyles and work-life balance have resulted in a higher dependence on packaged foods. Eating clean does not mean avoiding packaged food consumption; it means that the same food is made using wholesome ingredients that are closer to their natural state. So the next time you purchase foods at a supermarket or online, don’t forget to identify if the ingredient list contains INS numbers that indicate chemicals used to artificially enhance the flavour, colour, and texture of the food.
This desire for increased transparency also ties into growing consumer concerns around the environment and the ethical implications of the food they consume. There is also growing consciousness around minimizing food waste through innovative processes, efficient supply chains, and sustainable food packaging.
The next generation of Clean Label goes beyond the realms of just simplicity and rests on four key pillars, including real ingredients, nutrition, transparency, and sustainability.
Taste, convenience, and cost have been key influencers in driving the purchase of consumer foods. While taste remains the key driver of consumer preference for foods, there is an increasing inclination towards parameters around health, social value, and transparency. Simply put, consumers are demanding real ingredients from nature as opposed to “lab-created” artificial or natural flavours. COVID-19 has also accelerated consumer interest in dietary intake and health, with a considerable uptick in people who expect their food to deliver nutrition while building immunity.
FSSAI on clean labels
The term clean label does not have any regulatory or technical definition, but it is a subjective term referring to the consumer perspective of viewing food products as clean and straightforward. In India, the clean label market is still niche but is growing due to the growing consumer demand for clean, simple, and safe products. Consumers are increasingly showing interest in knowing the origin of food products, how they have been made, and the various artificial ingredients and additives associated with them. “All-natural” and “free-from additives or preservatives” are among the various clean label claims becoming popular in the Indian food market. In view of promoting such clean label claims, food manufacturers need to ensure that the food label is truthful and not misleading.
Various clean label claims that can be made on food products as per the Food Safety and Standards (Advertising and Claims) Regulations, 2018 from FSSAI are indicated below.
Products can be claimed as “natural”
Food can be claimed “Natural” if it is a single-ingredient food derived from recognized sources such as plants, animals, and microorganisms, and to which nothing has been added. Besides, the food should undergo processing such as roasting, blanching, dehydration, physical refining, smoking, concentration, freezing, concentration, pasteurization, sterilization, and fermentation. Even composite foods can make the claim “made from all-natural ingredients” if all their ingredients satisfy the criteria of being natural. For example, a soup made from dehydrated vegetables can claim to be made with natural ingredients” if all of its ingredients and additives are obtained through the natural process as laid down in Food Safety and Standards (FSS). A food business operator (FBO) can also claim “real” or genuine” in place of natural in such a way to imply similar benefits.
Frozen food can be claimed as “Fresh”
A food product can be claimed as “Fresh” if it has only used the necessary processes (such as washing, peeling, cutting, etc.) to make it safe for consumption without altering its fundamental characteristics. Also, if the process led to the extension of the shelf life of the product, then it is no longer allowed to be claimed as “Fresh.” Not all frozen food can be claimed as “Fresh”. For example, food containing additives and processed and preserved foods cannot be called “Fresh” despite being frozen. Besides, the fresh term can be used along with the term frozen, such as “freshly frozen,” “frozen from fresh,” or “fresh frozen,” if it is clear from the context that food is immediately frozen while still fresh.
Original and Traditional Claims
If the origin of the product formulation or any process that is traceable is known and major ingredients are not substituted and remain unchanged over time, the product can claim to be “original.” Also, the product should remain available as a standard product even if its variants are available in the market. Traditional claims are unique to the Indian market and not defined in any international regulations. The primary reason behind the traditional food claim can be the sizeable traditional food market in India. The traditional snacks market was valued at USD 2.71 billion in 2018.
No-added sugar, salt, and additives
A no-added sugar claim has recently gained popularity in the market, with claims such as sugar-free juices, breakfast cereals, and bakery products. The product cannot claim “no added sugar” if it contains sugar and sugar is present in its ingredients. Furthermore, if sugar is naturally present in any form in the product, the label must state “CONTAINS NATURALLY OCCURRING SUGARS.”Such a claim statement is defined to eliminate confusion among consumers that the product is free from sugar. Also, if the sugar content in the product is increased by any process, such as an enzymatic process, even then, the “no-added sugar” claim cannot be made. Similarly, the no-added salt claim can be made for food products if the product or any ingredient present in the product contains no added sodium chloride. Composite food can also be claimed as “no added additives” if it does not contain any added preservatives or additives.
It is also imperative for a company to know the target consumers for clean label products so that clean label claims can be tailored accordingly. For example, no-added-sugar claims can be targeted for diabetic consumers or consumers in the mid-age group consumers. The nutritional and health claims, if not appropriately mentioned, can be confusing for consumers. The Advertising and Claims Regulation, 2018 offers the opportunity for FBO to make clean-label claims without requiring any approvals. Also, only foods that fit a certain nutrition profile can carry claims. This regulation will benefit consumers and raise confidence in the products and their claims.