The debate surrounding ultra-processed foods (UPFs) has grown significantly due to concerns about their health impact. This scrutiny is prompting political action, like past regulations on alcohol and tobacco, possibly leading to more regulations in Europe. Amid this regulatory shift, demand for healthier, natural options is strong. Brands can leverage this by tapping into clean label claims and highlight their clean ingredients more effectively. According to Euromonitor’s Voice of the Consumer: Health and Nutrition Survey, fielded in February 2024, 17% of consumers prefer products that contain ingredients they recognise and are familiar with.
Stricter rules on food and drink labelling and advertising are inevitable
There is a clear trend towards increasing regulation in the food industry, as governments are focusing on stricter regulations to address public health concerns related to diet and nutrition. This includes measures such as sugar taxes, stricter food labelling, and advertising regulations. In the UK, the new Labour Government will likely push for stricter regulations on the food industry, while Italy is introducing a sugar tax in 2025. Germany's Nutri-Score system tightens regulations in 2024, emphasising sugar, salt, lack of fibre and sweeteners, and promoting protein and healthy fats. Colombia has implemented a progressive junk food tax, starting at 10% in 2023 and rising to 20% by 2025, which is being closely watched as a potential model for some countries in Europe.
Further scrutiny is observed as a recent WHO report has claimed that UPFs and alcohol, along with tobacco and fossil fuels, account for 34% of global deaths annually and backs calls for the extension of sugar tax to cakes, biscuits and chocolate. Understanding these developments is crucial as the regulatory environment is becoming increasingly stringent, requiring adaptation of products to meet new health standards and align with growing demand for cleaner products.
Regardless of regulations, consumers remain focused on diet and nutrition
Irrespective of new regulations concerning UPFs, consumers are increasingly aware of the link between nutrition and health outcomes. This is particularly evident in Western Europe, where consumers are paying close attention to food and searching out clean label and natural options.
34% of consumers in Europe closely read the nutrition labels of food and beverages
Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded January to February 2024
Whilst global consumers show a stronger interest in ingredients with functional benefits, such as products containing protein, compared to Europe, free from preservatives dominates all other food preferences after limited/no added sugar. In Europe, consumers appear to prioritise what isn't in their food products over the functional ingredients that may be added. This aligns closely with the growing trend towards UPF-free options.
“UPF-free” claims are set to rise as brands cater to the growing demand for clean ingredients
Consumers are increasingly conscious of the products they buy, prompting manufacturers to respond in ways that capitalise on this. One example is the emergence of the “non-UPF” claim which, while unregulated at present, could appear more frequently in product descriptions. This could follow the rise in use of other claims such as “Natural”. Brands that have traditionally emphasised being preservative free etc are now shifting their focus to highlight “UPF-free” claims to connect to growing concerns surrounding UPFs. While small, clean label brands have long promoted their absence of artificial ingredients, the recent shift is characterised by direct references to UPFs and signals a potential shift in how consumers evaluate products that are better for them. This suggests pressure for transparency and a more critical response to ultra-processed ingredients. Deliciously Ella is an example of brands that emphasise the absence of artificial additives and preservatives and adopt UPF-free references.
Manufacturers and consumers aren’t the only driving force, but retailers are also getting involved. La Bonne Distrib’ in France is enforcing compliance by requiring manufacturers to meet the "simple ingredients" label standards, set by the Goûm agency, to be accepted on the retailer’s shelf. The Goûm agency has banned at least 500 ingredients, including almost all ultra-processed ingredients that have been identified from its specifications that claim to be based on scientific literature.
Since 2019, there has been a notable rise in claims related to natural ingredients and the absence of artificial additives and preservatives in packaged food and drink, a trend expected to continue throughout Western Europe. While “no artificial additives” still represents a small share of SKUs, strong double-digit growth has been observed in a short amount of time.
It's not enough to simply offer cleaner ingredients but necessary to position products effectively and use transparent labelling to address concerns around artificial ingredients
Source: Euromonitor International
By communicating the use of simple or fewer ingredients, businesses can stand out in today’s competitive food and drink landscape.
Read our report, New Frontiers in Healthy Food and Beverages, for more in-depth trend descriptions on innovation in healthy food and beverages.