food label, product transparency

Survey: Product Transparency Is Key for Success in the Food Industry

In News, Trends by Amelie Welden0 Comments

Label Insight recently released its 2016 Transparency ROI study, and the results show that product transparency is a central issue for today’s food consumers. Read on for highlights about what information consumers want, how they want it, and the ways transparency can affect brand success.

Transparency can have a positive impact on brand preference and loyalty, even if it costs more

According to the survey, 73% of consumers would be willing to pay more for a product that offers complete transparency. Further, such products can stimulate brand preference and brand loyalty.

Of total respondents:

  • 39% would switch to a new brand if it offered full product transparency.
    • 81% would consider a brand’s entire portfolio of products if they switched to that brand because of transparency.
  • 94% are likely to be more loyal to a brand that offers complete transparency.
    • 56% would be brand loyal for life if a product offered complete transparency.

Product transparency is important across all food categories

Survey participants made it clear that product transparency is significant for all sectors of the food industry.

  • Dairy ranked highest, with 97% of respondents saying transparency was important in that sector.
  • The dairy category was followed closely by meat (96%) and produce (96%).
  • Snacks and baby food ranked lowest, but a large majority of respondents (89%) still said transparency is important in those categories.

Ingredients and nutritional information are most vital

According to the survey, the factors consumers look for most when determining whether a brand is transparent include:

  • A list of ingredients (77% of respondents)
  • In-depth nutritional information (54% of respondents)
  • Certifications and claims (51% respondents).

Somewhat less significant are a listing of known allergens (47%), information about production (40%), information about sourcing (35%), and information about handling (31%).

Consumers may not always believe a brand’s claims, but there’s room to build trust

Because consumers don’t necessarily trust product claims, they often look elsewhere for more information.

  • Only 51% of survey participants believe a brand when it claims to be “healthy” or “nutritious.”
  • 91% of respondents personally verify such claims, primarily by:
    • Checking the label (71%)
    • Searching third-party websites (42%)
    • Visiting the brand’s website (27%)

However, labeling and other transparency information can help build brand trust.

  • 78% of respondents said that complete label information causes them to trust a product more.
  • 56% would trust a brand more if it offered additional information about how the product is produced, handled, or sourced.

Consumers are open to digital and SmartLabel technology

88% of respondents expressed interest in accessing a complete set of product information digitally, mostly through:

  • The brand’s website (50%)
  • A mobile app (35%)
  • A third-party website (30%).
RELATED  [SPONSORED WEBINAR] Combustible Dust: 5 Things You Need to Understand on the Road to Compliance

79% of survey participants are likely to use SmartLabel technology.

  • If a brand participated in the SmartLabel program, 44% of respondents said they would trust that brand more, and 55% said they’d be more willing to try the brand.

Millennial moms are leading the way

Transparency is particularly important to Millennial moms (mothers aged 18-35), and they are especially open to digital labeling.

  • Compared to the general population, more Millennial moms link transparency to brand trust and brand loyalty.
  • They are also more likely to use SmartLabel technology or a mobile app to verify brand claims.
  • 86% of Millennial moms would pay more for a product that offered complete transparency, compared to 73% of respondents overall.

More details are available in the full report.

Leave a Comment