Food transparency has a definitive impact on consumers’ buying decisions, according to a new study from data research firm Label Insight. The company reports that 94% of respondents said that companies providing product information on their labels not only matters, but impacts their buying decisions.
Meanwhile, just 12% of the 1,522 surveyed ranked brands as their most trusted resource for information about what is in their product, while 67% believed it is the brand or manufacturer’s responsibility to provide consumers with this information.
“We’ve reached a point where consumers have much higher expectations for transparency about what is in their food,” said Patrick Moorhead, CMO at Label Insight. “Consumers have been demanding more and more information from brands in every sector of the market, and food companies are finally realizing how important it is to provide that information.”
The report progresses from delving into the current state of consumer confusion and spending decisions, to highlighting the opportunities brands and manufacturers have moving forward. As an overview:
• Consumer Confusion
The majority of consumers (81%) have consumed a packaged product with an ingredient they didn’t recognize at some point in the past month.
• Informed Purchase Decisions
Nearly all respondents (94%) said it is important to them that the brands and manufacturers they purchase products from are transparent about what is in their food and how it is made.
• Added Value
More than two-thirds (83%) say they would find additional value in having access to more extensive product information.
• Consumer Loyalty
More than a third of consumers surveyed (37%) said they would switch brands if another brand shared more detailed product information.
“Retailers are facing an increasing demand in terms of providing product information, and many are seeing their long-term customers jump ship to competitors who provide more information,” Moorhead said. “This presents an opportunity for new brands to gain market share, but also for established brands to secure loyalty by opening up about their products.”