Ethical Labeling – Toward Healthy and Safe Food Products

24 January 2020

Have you ever thought about the ingredients used in food and beverages (F&B) products before putting them in the basket at supermarkets? There has been a major transition in consumers purchasing behavior because food manufacturing companies are increasingly made accountable for labeling the ingredients. Ethical labeling has enabled consumers to consume healthy, safe, and clean products, while, at the same time, it has driven manufacturers to follow ethical practices. Consumers are demanding manufacturers to be transparent in their claims and labels. They also expect manufacturers and retailers’ business values are aligned with sustainable and fair-trade practices.

Read: Ethical Labels Market Global Outlook and Forecast 2020-2025

Labels in the F&B Industry

Halal: The demand for ethical labeling for halal food items is likely to gain traction due to the widespread Muslim population across the world and the lack of butcher shops that offer authentic halal foods. In 2019, the global Muslim population was estimated at 24% of the global population, which makes up for over 1.8 billion de facto consumers for halal-certified foods. The Organization of Islamic Cooperation (OIC) countries account for the highest share of halal products. However, leading suppliers of packaged halal food and beverages to OIC countries are non-OIC countries. APAC is the largest market for halal products as the region accounts for about 62% of the global Muslim population. Countries such as Malaysia and Indonesia are setting standards for halal certifications that are accepted globally. Moreover, halal F&Bs are increasingly adopted by non-Muslim consumers and Muslim-minority countries. Japan and China are expected to witness high growth among Muslim minority countries due to the rising import of halal meat. North America and Europe are likely to witness the growth in halal products because of the presence of diverse cultural consumers.

Organic: Over 180 countries are engaged in organic farming due to the high demand for organic food items among consumers across the world. The production of organic food items has witnessed a steady growth and reached over 70 million hectares of land being effectively used for organic farming. The APAC region accounts for over 40% of global organic producers, followed by the Middle East and Africa (30%) and Latin America (16%). In 2019, APAC and North America were the largest revenue contributors and accounted for combined share of over 65%.

The increasing demand for F&B with organic labels in European countries is growing on account of strict EU directives against plastic and single-use products. Countries such as the UK and Germany are demanding animal welfare labels, which further support the inclination for organic labels. In North America, the growth of organic labels is likely to propel due to the support of government and regulatory bodies for organic production and consumption. Moreover, in developed economies, consumers have a high degree of awareness of organic labels, thereby increasing ethical labeling market growth opportunities.

Clean Labels: Clean labels have become a buzz word in the food and beverage industry. The demand for the holistic and simple ingredient list can be attributed to the initiation of the clean label movement. Modern day consumers are highly informative. The increase in the number of consumers checking the ingredient list as well as claims made on the front of the packaging is also supported by the rise in marketing campaigns led by manufacturers of food and beverages. F&B products with reduced or no additives are winning over consumers and have increased the demand for natural flavored labels. In the US, 75% of customers claim they pay attention to ingredient and nutritional labels on packaging. Moreover, over 90% of customers believe that F&Bs with recognizable ingredients are healthier.Request for your free sample now! Prominent Vendors

  • Nestlé
  • PepsiCo
  • Danone
  • Mars
  • Hershey

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