Vitally important to consumers is what clean label is not: no artificial flavors, colors and preservatives, less added sugars and no emulsifiers, states Mark Fahlin, category marketing manager at Minneapolis-based Cargill, a global food and ingredient company founded in 1865.

To stay abreast of consumers’ shifting attitudes, Cargill fields an annual, in-depth, proprietary study of consumer attitudes toward specific ingredients that has a decade of data to inform decision-making.

“Our most recent study surveyed over 13,000 American consumers, spanning more than 300 ingredients. With a decade of data, this study allows us to track how consumer attitudes to specific ingredients evolve over time,” Fahlin explains. “Our research offers a window into why consumers check labels. In North America, ingredient avoidance outpaces ingredient seeking. Three in five consumers tell us they check labels to avoid certain ingredients, while just 42% say they’re looking for specific ingredients.

“We also know what they’re trying to avoid,” he continues. “On an unaided basis, three of the top six ingredients consumers say they aim to avoid are linked to sweeteners, with sugar topping the list.”

However, when it comes to checking labels, not all food products are created the same, Cargill’s proprietary research discovered, with about two-thirds of consumers regularly checking product labels.

“But for some categories — including yogurt, milks and plant-based milks — consumers are more label conscious,” Fahlin relays. “There’s something inherently wholesome about dairy products, and as a result, consumers are a bit more sensitive as to what goes on the label.”

There’s no denying the power of the label

Bastian Hörmann, global marketing director for Sweet Goods, Dairy & Specialized Nutrition at ADM, concurs that today’s consumers are scrutinizing product labels like never before, citing research from the Chicago-based company’s ADM “Outside Voice” report.

He also points to FMCG Gurus’ consumer research, “Top Ten Trends for 2024,” that notes that “73% of global consumers are seeking out food and drink products that contain recognizable ingredients, 73% are looking for ‘natural’ products and 74% state that they check ingredient lists,” Hörmann says. “This all points to a heightened concern and consideration for what’s on the product label.”

Ivan Gonzales, director of category marketing for dairy at Westchester, Ill.-based Ingredion, suggests that the clean-label trend started with consumers being more conscious about how their food was being manufactured, the ingredients used, and their strong preference to avoiding some chemical-sounding ingredients.

Today, the clean-label trend has evolved to broader aspects related to health and sustainability. “More consumers are reading front-of-pack and back-of-pack labels, looking for claims, nutritional and ingredient statements that align with their diets and personal interests,” Gonzales says.

Jennifer Stephens, vice president of marketing at Fiberstar Inc., concurs that sustainability, health, and wellness are top-line trends impacting the dairy industry.

“Consumers are more cognizant today about food waste, eco-friendliness, and caring for the planet in general. And since clean label has many definitions including ‘better,’ it is often associated with the concept of environmentally good,” Stephens states. “This opened many opportunities for food ingredients including upcycled, organic and natural.

“Clean label is also associated with health and wellness. Health-conscious consumers typically reach for ingredients that are recognizable or carry an innate health halo,” she continues. “Many dairy products naturally contain those clean-label ingredients. Exceptions would be the ultra-processed dairy foods that typically contain multiple stabilizers. Because of this clean label trend, many manufacturers are re-formulating their dairy products to use more label friendly texturants and stabilizers.”

River Falls, Wis.-based Fiberstar receives many requests to replace stabilizers, such as food gums and modified food starch, in processed dairy products to “clean up the labels with natural ingredients that are multi-functional and also to shorten the ingredient statement,” Stephens notes.

And while many plant-based products denote eco-friendly, they are expected to be created using natural ingredients, but still may require texturants and stabilizers to improve taste and mouthfeel. Fiberstar helps manufacturers improve the texture and stability of plant-based spreads, dips, and dressings, according to Stephens.

Recognizable ingredients that shine

Meticulous Research reports that the ingredients market will be worth $93.2 billion by 2031, with ingredients like milk powder, whey protein, and milk protein continuing to resonate.

Generally, consumers have tried and/or are familiar with dairy proteins, including whey and milk proteins, so they understand the source of these ingredients — in milk — signals to shoppers that this product meets clean-label expectations, ADM’s Hörmann says.

Other ingredients supporting the clean-label movement in the dairy market are those that impact the sensory experience and nutritional value. These include flavors, colors, texturants, and sweeteners derived from natural sources, as well as plant proteins and wholesome ingredients, Hörmann explains.

Among the ingredients “strongly accepted” by consumers are milk powder, cream, milk, and whey proteins since consumers know their taste and nutritional benefits, Ingredion’s Gonzales relays.

However, the formulation, production, and distribution of many dairy products such as yogurt, ice cream, creamers, and cheese may require other ingredients to deliver the texture, taste, flavor, and sweetness that characterize these products, he adds.

“Thus, there is a good deal of innovation that is happening in these areas,” Gonzales says.

In June, Clio Snacks, known for transforming the ordinary into the extraordinary, introduced a new, bite-sized snack that’s intended to capture the hearts and taste buds of consumers nationwide: Clio Snacks Mini Yogurt Dipped Greek Yogurt Bars. Available in Strawberry Banana and Mixed Berry, the bite-sized, 60-calorie Greek yogurt bars are made from simple ingredients — whole milk yogurt and real fruit dipped in a creamy yogurt coating, the Piscataway, N.J.-based company says.

 “The rise of health-conscious consumers has led to a demand for snacks that don’t compromise flavor or nutrition,” says John McGuckin, CEO at Clio Snacks. “Clio Bars answers this call, setting a new standard in the snack industry. Featuring real ingredients and a delightful taste, they represent a shift toward more mindful eating without sacrificing pleasure.”

Because of the clean-label trend, many manufacturers are re-formulating their dairy products to use more label-friendly texturants and stabilizers.

Fiberstar manufactures and sells Citri-Fi citrus fiber, an upcycled ingredient produced from byproducts of the citrus juicing industry made without chemical modifications, says Chief Science Officer Brock Lundberg, Ph.D.

“… Not all citrus fibers are created the same. Some are byproduct of the pectin extraction process, which typically undergo chemical modifications. Other fiber ingredients try to attain functionality by blending in pectin separately. Citri-Fi is produced ’as is’ like Mother Nature intended,” he states.

The composition of insoluble and soluble fiber provides water-holding and emulsification properties which enables Citri-Fi, at a low usage level of less than 1%, to control syneresis and improve the creaminess in a variety of dairy products including yogurts, creams, spreads, whipped toppings and drinkable beverages, according to Lundberg.

Positive perceptions and purchasing power

While “health” and “indulgence” might seem like a contradiction, Lenexa, Kan.-based Corbion, is seeing more textures and flavors, protein, and gourmet offerings. “Innovation is key here, and consumers are willing to try and experiment with new flavors — especially when it comes to ice cream. [Glucagon-like peptide-1] (GLP-1) users are a consumer cohort that we are monitoring closely in this market,” notes Corbion’s Global Insights Manager Megan Passman.

GLP-1 receptor agonists, also known as GLP-1 analogs, are a class of drugs that mimic GLP-1's actions by activating the GLP-1 receptor. These drugs are used to treat type 2 diabetes and obesity, she explains.

In the sweetener world, stevia and stevia leaf extract have positive perceptions and positive purchase impact on food and beverage products, Cargill’s Fahlin states, pointing out that consumer interest in reduced-sugar products has been climbing steadily for the last decade with no sign of waning.

However, consumers aren’t willing to compromise. “They expect these products to deliver similar indulgent experiences as their full-sugar counterparts,” Fahlin explains. “Advanced stevia sweeteners like Cargill’s EverSweet make it possible for brands to do both. Its clean, sweet profile makes it possible to achieve deep sugar reductions, while still meeting consumer expectations for great taste.”

Icon Foods’ Chief Innovations Officer Thom King notes that the USDA guidelines for added sugar in the school lunch program also are influencing demand for clean-label dairy as children are a significant demographic for consumption of flavored dairy beverages.

Another demographic, specifically millennials and GenZs, are demanding better-for-you or actually “good-for-you” dairy products, King adds.

“They don’t want chemical-based sweeteners like aspartame, Ace-K, and sucralose,” he explains. “Those ingredients are very much trending down in flavored dairy and the most popular [ready-to-drink] RTDs right now are ones that don't have sucralose or aspartame.”

Consumers also are searching for nutrient-dense RTDs using casein, whey protein isolates, or milk proteins in the much coveted 50 grams of protein in a single-serving RTD, King adds.

“Consumers looking for something dense in nutrients look at the label right away to see what kind of garbage is in the product. They want a clean label,” he states. “Particularly with the ever-growing market of consumers that are using GLP-1 agonists for the control of blood sugar, and ultimately as a tool to vanquish ‘diabesity,’ nutrient-dense beverages will continue trending.”

While Corbion sources ingredients and materials from all over the world so that we can deliver precisely the ingredient label that its customers intend to launch, Senior Scientist Drew Wunderly relays that very few ingredient manufacturers are basic in all avenues of food ingredients, as it is simply too costly to have such a deep product portfolio.

“The real expertise is knowing exactly which clean-label ingredients to source, incorporate, and in what ratios to deliver great quality eating experiences that are clean label,” Wunderly emphasizes. “The current market is moving toward a shorter ingredient label now, which favors traditional dairy products.

“There are some very good offerings in the alternative dairy space, and they are going to continually improve as technology allows; however, the inherent nature of dairy will allow for more clean label offerings overall,” he continues.

In addition to being clean-label, dairy proteins are a more cost-effective protein compared to pea protein, pumpkin seed protein, or other novel plant-based proteins.

“Dairy-based proteins are a lot cheaper than plant-based proteins, so there are a lot of companies that will just turn out a high protein RTD without even trying to deliver a clean label,” KIng concludes. “In general, plant-based protein drinks tend to be cleaner label, but it doesn’t have to be that way. There's a huge opportunity for more dairy-based proteins to get clean.”