Organic and Clean Label Food Shoppers: US Market Trends & Opportunities in Packaged Foods, 3rd Edition

Report Overview

Food and beverage products without artificial ingredients are important for clean labels.

Organic and Clean Label Food Shoppers: US Market Trends & Opportunities in Packaged Foods is the go-to source for a complete understanding of consumers who seek out organic and clean label food and beverage products.

This Packaged Facts report analyses trends among consumers who buy and eat organic and clean label food and beverage products. The scope of analysis is centered on consumer perceptions, motivations, and behavior.

The report identifies opportunities and challenges central to the growth of the food and beverage market with a focus on organic, clean label, and other “better-for-you” foods.

Analysis within Organic and Clean Label Food Shoppers: US Market Trends & Opportunities in Packaged Foods combines Packaged Facts’ extensive monitoring of the food and beverage market with proprietary surveys, and evaluates current trends and future directions and opportunities, along with challenges during the pandemic and inflation era and across the broader food and beverage market.

There is no single universal definition of “clean label”, and this term is not used on food product packaging; products “free from” ingredients such as allergens, pesticides, hormones, artificial ingredients, and preservatives are key to the trend. However, attributes that products feature rather than lack are also important distinguishing characteristics. Claims of environmental sustainability; company transparency; wholesome, simple ingredients; and humanely raised animals are commonly employed by marketers to get the attention of people looking for clean labels.

“Clean label” covers three broad areas of concern – what is in the food, how it is produced, and who produces it. Factors important to clean labels include:

• fewer and more recognizable ingredients

• minimal processing that does not include preservatives, additives, or artificial ingredients (in other words, an approximation of the cooking and preparation done in home kitchens)

• exclusion of pesticides, hormones, antibiotics, or GMOs

• sustainable, environmentally responsible production and shipping practices

• product traceability and company transparency

• ethical, socially conscious business practices

• conscious (often local) sourcing

• truth in advertising

Clean label is a spectrum, so some products may be perceived as “cleaner” than others. Opinions on this vary from person to person, but consumers generally believe that companies cannot hide behind clean label claims printed on packaging. Instead, many people think that ingredient and nutritional panels speak for themselves and allow them to accurately judge a given product’s cleanliness.

Clean label and organic consumers – those who almost always buy or make every effort to eat clean label and organic foods – make up a relatively small part of the population. However, general consumers frequently hold similar opinions about the safety, quality, and healthfulness of foods, which leads many people to buy organic and clean label products.

Significant numbers of consumers think that these product features are premium, healthier, and better for animals and the planet; many are willing to pay more for such products. Expanding availability to neighborhoods and venues where these foods have traditionally not been available (e.g., convenience stores) are key to increasing access and awareness. As production processes change to accommodate the demand for cleaner foods, prices may drop enough for more consumers to purchase them regularly.

With a focus on “what’s next” and current consumer trends, Organic and Clean Label Food Shoppers: US Market Trends & Opportunities in Packaged Foods is packed with insights about consumer trends, behavior, and motivations to help food and beverage producers, retailers, packaging firms, employers, and investors gauge consumer perspectives and find areas for growth in a competitive market.

Organic and Clean Label Food Shoppers: US Market Trends & Opportunities in Packaged Foods delivers actionable predictions and recommendations designed to guide producers, retailers, and investors in making business decisions by providing data and insights about organic and clean label shoppers.

Report Methodology

The information contained in Organic and Clean Label Food Shoppers: US Market Trends & Opportunities in Packaged Foods was developed from primary and secondary research sources. Primary research includes interviews with food and beverage market experts; participation in and attendance at food industry events; and extensive internet canvassing.

Primary research also includes national online consumer polls of U.S. adult consumers (age 18+) conducted on an ongoing basis by Packaged Facts to analyze attitudes of consumers and their relevant food and beverage preferences.

Survey data from MRI-Simmons are used to analyze the demographics and psychographics of consumers.

Supplementing Packaged Facts’ exclusive surveys is analysis from the International Food Information Council Foundation’s (IFIC) 2024 Public Perceptions of Processed Foods Report and the 2024 Public Perceptions of Pesticide & Produce Consumption Report provide. These reports provide valuable insight into consumers’ perspectives on food purchasing decisions and diet and lifestyle choices. Additionally, IFIC’s 2023 Food and Health Survey is used to provide other useful information on consumer behavior.

The Spectrum From Minimally Processed to Ultra-Processed Foods

Although “processed” may initially seem to be a clear-cut designation, it is also open to interpretation and (like “clean label”) ultimately somewhat arbitrary. The definition and perception of “processing” varies from person to person and across products despite efforts to establish greater consistency and consumer understanding. Multiple considerations – such as organic versus conventional, homemade versus store-bought, and fresh versus frozen versus canned – often impact on how consumers perceive a particular product.

Unprocessed and minimally processed foods (e.g., fresh produce, eggs, fresh meat, and coffee) are the most desirable to consumers interested in clean label and organic foods because they have the lowest levels of processing. Processed culinary ingredients like butter, cooking oil, and honey are commonly used by consumers at home for cooking. Foods such as natural cheese, fresh baked bread, and canned vegetables are the next level of processing; they are typically made by combining processed culinary ingredients with unprocessed or minimally processed foods.

The most processed foods are called “ultra-processed” foods (UPFs). These products are of most concern to clean label consumers. Though UPFs are convenient and often highly palatable, they tend to be the least healthy and do not resemble foods that consumers can make in their own kitchens. That said, UPFs can be considered healthy when the designation is driven by use of nutritional fortification and fat and sugar levels are otherwise reasonable.

Key Consumer Trends

Distrust of “industrial food” has led some consumers to seek out new avenues for food, including local farmers’ markets and independent shops that source produce and animal products locally. However, these consumers also shop in bigger stores – such as supermarkets, mass merchandisers, and wholesale clubs – and expect to find products that promise something different than conventional foods.

Simple and wholesome foods are what clean label consumers want, often for the nostalgia of a time when people were more closely involved in the methods of production. Organic consumers also tend to want these things, as well as assurances that their food is produced under more stringent guidelines and is healthier than conventionally grown food.

Nonetheless, clean label and organic consumers share in the overall tendency to avoid products that do not taste good. Additionally, they often seek out convenient foods, which are usually processed or even ultra-processed. Many of these – including heat-and-eat meals and snack foods that might otherwise be “ultra-processed” – are being released in the clean label and organic space to provide good taste and convenience in tandem with cleaner labels (e.g., no artificial preservatives or colors and healthier nutrient profiles than conventional offerings).

More consumers want to eat more plant-based foods because:

• They think that such products are healthier.

• Ongoing publication of news stories about animal abuse and poor conditions at industrial farms is causing people to think more about where their food comes from and what impact it has on the world.

• Concerns about climate change are leading consumers to question whether meat is part of a sustainable diet.

Thus, more consumers are turning to plant-based substitutes for animal products – such as plant milks and plant-based meat substitutes – even when they do not intend to entirely remove animal products from their diets. Many plant-based products have been highly processed, but new launches are jumping into the “clean” space with simpler ingredient lists and healthier images.

The key target markets for organic and clean label foods are higher-income and younger consumers, as well as parents of small children.

The organic/clean label consumer tends to be informed, curious, and engaged. These consumers are active in managing their own health and enjoy foods, engaging with food through cooking, dining out, shopping, and exploring new flavors and recipes. Clean label consumerism is emotional and personal, so opportunities exist in clean label products that appeal to the feelings consumers have as well as to their ethical concerns.