Disclosure legislation is appearing more frequently as consumers increasingly demand transparency from brands into the products they buy. The California Cleaning Product Right to Know Act, the FASTER Act for sesame labeling, the National Bioengineered Food Disclosure Standard (NBFDS), and now proposed legislation for using the term “healthy” on packaged foods all require brands to disclose various information about their products. And new disclosure regulations are sure to come.
With over 200 million shoppers adhering to a particular diet or health-related eating program, the importance of a balanced diet and exercise is a no-brainer. This is even more obvious to brands and retailers who have a massive opportunity to deliver the right product data to the right consumer at the right time. With just data alone, brands and retailers are falling short of the expectations and personalization shoppers have come to expect. Label Insight helps to bridge this gap, combining robust product data with the nutritional and dietary expertise needed to ensure accuracy and data completeness.
Today, search and discovery is broken in online grocery. A search for “peanut free” returns peanut butter, peanuts, and ice cream with peanuts in it. The search for “egg free” returns a carton of eggs. For millions of consumers suffering from allergies, getting this right has potentially critical consequences. The list of searches that return significantly limited to zero results is just as dire. This is a huge shortcoming in the CPG industry.
Poor diet is the leading cause of poor health in the US. In recent years we’ve seen increased evidence of the relationship between consuming excess added sugars and chronic illness, most prominently with heart disease, hypertension, and type 2 diabetes.
This Valentine’s Day, health-centric shoppers were seeking out candies that would allow them to indulge in the celebration without the burden of compromising their diets and hard earned progress. CPG brands and retailers should be asking themselves two questions: did consumers know where to find these diet compliant candies in-store and online, and what can be done to make this search more convenient for shoppers going forward?
From a consumer perspective, the online grocery experience is broken. While an increasing majority of consumers are shopping based on lifestyle choices and wellness needs (up 15% over the last two years), online retailers aren’t making it easy for them to find products that meet their criteria.
Traditionally, household cleaners have not been required to disclose ingredients on-package. But now that California has passed the California Cleaning Products Right to Know Act, all cleaning products sold in the state of California, which is currently most of the market, must disclose ingredients on-package and digitally. As a result, consumers are not as familiar with these ingredients, leading to confusion and apprehension as some household cleaning products have unrecognizable and often intimidating chemical names.
Grocery e-commerce is witnessing massive shifts in consumer behavior. While grocery shopping was almost entirely brick-and-mortar as little as five years ago, innovations in fulfillment, such as same-day delivery and click-and-collect, have made grocery e-commerce more attractive. The number of households ordering groceries online has risen over 145% from August 2019 to March 2020, and 43% of households surveyed said they are either extremely likely or very likely to stick with online grocery buying even after the current pandemic is over. But grocery brands are leaving money on the table by not optimizing their CPG product listings according to the way consumers are searching.
One type of value we deliver to our customers at Label Insight is the ability to tap into our robust product attribute data to uncover emerging consumer trends that can help grow their business. Related to emerging consumer trends, I had the opportunity to attend the recent Natural Products Expo in Baltimore, MD that showcased new products from some of the world’s most innovative natural food manufacturers. Although the insight I gained was not powered by our intellectual property or machine learning, it provided a compelling view into a number of interesting trends that might just turn into the “next big thing”.
Last week, a few of my colleagues and I were given the opportunity to attend the annual Natural Products Expo West Show in Anaheim, California. Our attendance was strictly business, but it’s hard not to feel anxious and a bit overwhelmed walking into the 1,600,000+ square feet of exhibiting space at the Anaheim Convention Center. A mere 12 hours from the moment we walked in, that vast open space would be crawling with over 88,000 attendees representing over 3,400 unique exhibitors from around the world. It’s truly hard to describe the immensity of the show. Allow me to back up a bit and explain what the show is and how we fit into the equation. The Natural Products Expo Show, in its 39th year, is precisely what it sounds like: a giant convention where brands, manufacturers, suppliers, and distributors go to show off their newest and hottest products coming to market. If you are a self-described “foodie,” this is undoubtedly your Mecca. I could probably write an entirely separate article on the hundreds of different product types showcased, but I’ll spare you. Instead, you can check out the extensive list by clicking here.