How transparent ingredients meet consumer expectations
Openness About Ingredients and Production Practices Can Benefit Beverage Brands
We look at how transparent ingredients and openness of sourcing and production can help drive growth by meeting consumer expectations.
Transparent ingredients builds trust
Consumers are increasingly concerned about transparency on values close to hearts such as health, sustainability and ethical considerations. Loyalty is won and lost from how honest a brand.
Conscious consumers expect transparent natural ingredients for health benefits
Today consumers are more conscious about what they consume, in particular the food and drink they consume. Health is an important factor in choices, and so transparency on ingredients is crucial to make those critical choices. For example, in Catalyx-own research on Corona Cero, the ‘natural ingredients’ claim dialled up engagement in product and consideration to purchase. Using these transparent and attractive ingredient claims can also help to differentiate you from the competition.
Natural ingredients are associated with reduced chemicals or synthetic equivalents. Consumers prefer and trust natural ingredients as a way to reduce their consumption of artificial additives, preservatives and flavourings. Natural ingredients create a perception of healthier and cleaner product choices. For example, tea company Brew Lab, a New York-based brand. Stocked in the likes of Target and Whole Foods, in 2020 they launched their Owl’s Brew Boozy Tea, an alcoholic sparkling tea made from clean and tasty ingredients.
The Clean Label movement continues to gain pace. Linked to this is the simplicity of ingredients as well as natural ingredients. Over 70% of consumers are willing pay more for current brands that reformulate to be able to make natural ingredients claims (Ingredion’s Global Clean Label Manufacturer research).
Dietary intolerances and allergens require transparency
Over the last five decades dietary requirements have been on a noticeable rise. Recent academic data suggests up to 11% of the global population has a food allergy. And with an increase in inflammatory responses, even more people are dealing with food intolerances. The most common of these inflammatory issues is Irritable Bowel Syndrome (IBS), with the National Institute of Health in the US claiming about 12% of people in the US have IBS. GII Research reports the European gluten-free foods and beverages market is estimated to register a CAGR of 11.1% during the forecast period (2022-2027). Therefore, having very clear and transparent access to ingredients in an easy to digest format is increasingly important. This is particularly important when thinking about online product touchpoints.
Gluten free beers are on the rise in the UK due to active demand from the 10% of consumers who are on gluten-free diets (Coeliac UK). And by the many who choose gluten-free options if available but don’t cut gluten out completely. Numerous beer brands have innovated to offer just as good gluten-free beer alternatives – Vocation, Green’s, Magic Rock Brewing, Purity Brewing, Greene King, Jubel, Brew Dog and more.
Transparent ingredients in combination with transparent sourcing and production
Consumers expect the sourcing of ingredients and the production of product from ingredients to be as transparent as the ingredients themselves. Minimal processing and as close to its natural state as possible are drivers to a product’s naturalness. This can also relate to the farming of ingredients – the sustainable practices that are as natural as possible, such as organic. Soil health, biodiversity, and sustainable ecosystems will become increasingly important. Particularly as Gen Z is emerging as the sustainability generation and are driving this agenda.
It’s important for brands to be considering how they can innovate to meet consumer expectations on natural ingredients, simple and open sourcing and production, and how to communicate with clear benefit of transparency.
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