Clean Label

Clean Labels Explained: What They Are and Why They Matter

Clean Labels Explained: What They Are and Why They Matter 1280 773 JIT Experts Hive

Clean label, clean beauty, clean standard – these are claims we see on many brands, retail websites, and advertisements. From food to beauty & cosmetics to cleaners and many other household items, the market is ripe with products claiming to be “Clean”. 

And there’s a good reason for it. Consumers want brands and retailers to deliver products that:

  • are thoughtfully designed
  • have the least possible negative impact on their health and the environment 
  • are high quality, effective, and deliver the expected physical and emotional benefits

Consumers choose products with natural and clean claims, because they are trying to align their purchases with personal values. These trends have resulted in hundreds and thousands of self-proclaimed clean products that are…

  • natural
  • organic
  • free from
  • non-toxic
  • chemical free 

And lets not forget the concepts of sustainability and renewability. In fact, recent research has shown that more than half of global consumers say their beauty and personal care product choices are influenced mostly by the brand’s environmental and social responsibility stance and efforts.1

The problem is that many of these clean claims come without a regulatory definition and/or even generally accepted definition. This leads to many bogus and false claims. This makes it incredibly difficult for the consumer to differentiate between greenwashing and false claims and products that are actually clean, natural, organic, earth friendly, and so on.

Then there are the smart companies and brands – the ones who want to stay out of trouble with regulatory agencies and consumer advocacy groups. They want to gain credibility and trust by developing their own clean standards – and then sharing them with their consumers. 

This doesn’t necessarily mean the standards are high quality or are based on science. But it at least creates credibility with their consumers and establishes a baseline for defense if they’re challenged.

That is why reputable and trustworthy brands and retailers also feel the responsibility of educating consumers and being more transparent about their products.

Your Consumers Are Evolving

The good news is that the customers who care about healthy and responsible consumption are becoming more and more savvy.

The internet and social media has empowered consumers to discover and educate themselves about products and ingredients like never before. This is leading to the emergence of new consumer values and demands. These consumers want ingredient-led, results-driven products that won’t break the bank.

They are self-educated, caring, curious, and know what they want. But they’re also demanding. These consumers can be leveraged by marketers and savvy social media teams to advocate for science-based conversations about products that focus on safety, efficacy, and value.

As educated and curious as consumers are becoming, there’s still a major problem – and it happens right in the aisle or in your online store. It’s the sea of confusion when it comes to clean labels. It’s understanding what is science and what is fiction.

So, what’s considered clean in the eyes of the consumer? And what is it they need? They’re looking for products that don’t overload the body with chemicals. They want products that don’t cause allergies or sensitivities, cancer, or other diseases. They consider those safe.

University of Melbourne research reveals that one in four Americans report chemical sensitivity.2 Almost half of this group was medically diagnosed with Multiple Chemical Sensitivities (MCS). In the U.S., an estimated 55 MILLION Americans have MCS.3

As such, what’s NOT in a product has become as important as what IS. To address these concerns, companies are using approaches to communicate the safety of their products. Here are four of them.

Claim #1: Natural

Natural claims imply nothing added. It creates the perception of:

  • wholeness
  • health 
  • safety

With the growing concern over what “chemicals” could do to our bodies and environment, consumers are moving away from artificial and synthetic. They’re shifting towards natural and healthy. In their eyes, familiar-sounding ingredients translate to simpler and safer products.

The challenge is that natural is not always equal to safety. Just because an ingredient originates from nature doesn’t mean it’s safe for use. This reminds me of something my chemistry professor used to say, “The dose makes the poison.”

Many consumers believe that because the product contains ingredients that are natural or plant based that the product must be safe. This is an incorrect assumption. In many cases, a natural or botanical ingredient may harbor chemical or microbial contaminants that can be harmful to the consumer. For example, poison ivy is natural and botanical – but it’s not safe.

There’s also a lack of regulatory and/or widely accepted definition for “natural.” Because of this, many brands and companies are developing natural definitions that are not based on fact or science. What this leads to is a market full of false natural claims and shaky consumer confidence.

Claim #2: Organic

After conquering the world of food, organic is becoming more of a trend in the beauty and personal care world. Consumer demand for organic cosmetics has grown at double-digit rates in recent years. The general belief is that organic cosmetics are better for skin and better for the environment when compared to products made with harsh chemicals.

But here’s the quirky truth. When the USDA regulates the term “organic,” it does so through the lens of agriculture – through its National Organic Program (NOP) regulation. So, if a cosmetic, body care product, or personal care product contains agricultural ingredients and meets all the USDA/NOP standards, it may be eligible to be certified under the NOP regulations. 

To become certified, three groups within a company must be certified by a USDA-accredited organic certifying agent:

  • operations which produce the organic agricultural ingredients
  • the handlers of these agricultural ingredients
  • the manufacturer of the final product 

Cosmetics, body care products, and personal care products may be certified to other, private standards, such as Cosmos Organic, Ecocert, NSF/ANSI 305, etc. – and be marketed to those private standards in the United States.

Claim #3: “Free From”

“Free from” claims first started in the food industry before expanding into areas like beauty and even household cleaners. They’ve become quite a popular approach to convey cleaner and safer products.

“Free from” usually means that a product is free from things like:

  • preservatives
  • artificial color
  • flavor
  • fragrances

These “free from” claims have now evolved into something more specific – a list of ingredient “no-no”s within the beauty industry. These no-no lists usually refer to formulation that is free from a list of potentially harmful and irritating ingredients. 

Nielsen data shows clean brands that have specific no-no ingredients and key artificial ingredients grew by 4.2% in 2018.4 This growth outpaced brands that only claimed to be artificial free. Another Nielsen report noted:

“In the cosmetics industry, “free from” claims didn’t stand out as much to consumers as some of the specific ingredient mentions, but overarching “free from harsh chemical” and “non-toxic ingredients” themes were very believable to achieve various skin care benefits.”5

That is why many brands and retailers are creating no-no lists. They want to build trust and differentiate. They’re also differentiated their products by using a combination of:

  • plants
  • vitamins
  • minerals
  • botanical extracts. 

This also includes moving towards simpler ingredients and a shorter ingredient list.

Claim #4: Fragrance Transparency

One major concern in the beauty industry is “fragrance”. Scent or smell is still one of major attractions and buying factors in the beauty industry. However, there’s growing concern over the negative health effects of fragrances, such as:

  • irritations
  • allergies
  • respiratory diseases 
  • plus other side effects

In the U.S. and around the world, flavor and fragrance ingredient breakdowns aren’t required for labeling. In fact, the ingredient “fragrance” may contain tens if not hundred or more undisclosed chemicals

For many consumers, the word “fragrance” on a cosmetic or “flavor” on food product labels without an ingredient breakdown is a red flagespecially if that brand claims to tout natural formulas. 

For many consumers, the solution isn’t so easy. It’s more than just adding “natural” to fragrance or flavor declaration. Consumers want full transparency into “fragrance/flavor” ingredients. 

Many countries outside the U.S. have mandated minimum declaration of allergenic or sensitivity ingredients in the “fragrance” formula for cosmetic/beauty products. In the absence of regulatory requirements and to address this booming need for transparency, many companies are providing additional information. They’re declaring the allergenic components of fragrances in their beauty or cleaner products. Some are even declaring the full ingredient breakdown for their fragrances.

You may be wondering…how big of a role does “free from artificial fragrance” actually play in the market? Quite a bit, actually! Data from Nielsen showed “free from artificial fragrance” brand dollar sales rose +2% in 2018, compared with an almost flat 0.1% for the total personal care sector.6 Free from artificial fragrance” claims now represent about 28.2% of the total market.7

Regardless of what approaches(s) brands and retailers are taking to develop clean standards, they also need to take steps to gain trust of the consumers. To do this, they need to do several things: 

  • develop clean standards 
  • provide full transparency into what is and what is not in the products
  • leverage independent 3rd party certifications, such as EWG Verified, Made Safe, Toxin Free, EPA safer choice, and other certifications.

What matters is gaining consumer trust and to do that, brands first must show their products are safe. The independence and unbiased assessment from a 3rd party certifier goes a long way to strengthening consumer confidence.

It’s Time to Clear up the Clean Label Confusion

When claiming clean products, the first step is to define what you mean by “clean. Here are some important factors to help you get started:

  • Understand the public’s definition/perception of safe, natural, sustainable and ethical
  • Leverage credible, scientific sources
  • Use science to answer an incorrect perception
  • Maintain clear and easy to understand standards. Provide education on what are these standards and why you have chosen those. These standards shouldn’t be only about what’s in the formula. They should also be your standards or “Code of Conduct” on how it is produced, consumed, impacts communities and the environment.
  • Have SMART Goals: Specific, Measurable, Achievable, Relevant, and Timely Goals. Make sure you develop and share goals that are relevant and important to your customers – and are achievable for you as a company. In other words, “don’t over promise and under deliver.”
  • Be honest. Share what you are, what you’ll be doing, and what you can’t do. Nobody expects you to be everything to everyone. It’s a journey – the end goal is ever evolving with new information and changing markets and consumer needs. Take consumers on this journey with you in an honest and open manner.
  • Stay transparent. Provide complete product and supply chain information wherever you can so consumers can make a choice. It creates trust and results in long lasting relationships.
  • Be an honest marketer. Marketing sells, but false marketing can have short term results and long term liabilities. Marketing and regulatory teams need to work together to develop compelling marketing messages that are impactful and truthful. Marketing should be transparent, open, and honest 

It’s a long list to keep in mind, and doing it isn’t any easier. This is where it’s helpful to bring in outside expertise. If you aren’t sure where to find an outside partner, we would love to help. Please send us a message or email us at info@jitexpertshive.com.

Remember – when you do it right, you AND your consumers reap the benefits for a long time to come.

 

 

Sources

  1. (2019, October 1). Natural Beauty, Sustained: Free Bio-derived and Sustainable …. Retrieved December 17, 2020, from https://www.cosmeticsandtoiletries.com/formulating/category/natural/Natural-Beauty-Sustained-Free-Bio-derived-and-Sustainable-eBook-561539921.html
  2. -7. (2019, June 28). Beauty Comes Clean: Free Ebook – Cosmetics & Toiletries. Retrieved December 17, 2020, from https://www.cosmeticsandtoiletries.com/marketdata/segments/Beauty-Comes-Clean-Free-Ebook-511782962.html
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