What are clean labels in food products?

Clean labels refer to food products that contain simple, recognizable ingredients without artificial additives, preservatives, or synthetic colors. These products typically have shorter ingredient lists with names consumers can easily understand. The clean label movement is driven by growing consumer preference for more natural, less processed foods and greater transparency about what's in their food.

Why is Hershey removing synthetic dyes by 2027?

Hershey is removing synthetic dyes by 2027 in response to two major factors. First, consumers are increasingly demanding more natural products with recognizable ingredients. Second, regulatory pressure is mounting around artificial additives. This timeline allows Hershey to reformulate their extensive product line while ensuring the replacement natural ingredients can match consumer expectations for taste, appearance, and shelf stability.

What are natural colorants and how do they differ from synthetic dyes?

Natural colorants are pigments derived from fruits, vegetables, plants, and other natural sources—like beetroot for red, turmeric for yellow, or spirulina for blue. Unlike synthetic dyes, which are created artificially in laboratories, natural colorants come from food sources people are familiar with. They're generally perceived as healthier, though they can be more challenging for manufacturers to work with as they may be less stable, more expensive, and can sometimes affect flavor.

What does third-party verification mean in the clean label industry?

Third-party verification involves independent organizations examining a company's ingredients, manufacturing processes, and claims to confirm they meet certain standards for "clean label" products. This verification is crucial for building consumer trust, as it provides unbiased confirmation that products truly contain what they claim. Companies like Where Food Comes From (WFCF) specialize in this verification, which becomes increasingly important as more food brands make clean label claims.

How might this clean label trend affect my investment returns?

The clean label trend represents a fundamental, long-term shift in food production rather than a passing fad. Major companies are allocating significant capital to reformulate their products, creating sustained demand for natural ingredient suppliers. For investors, this means companies in this group may benefit from multi-year growth as the industry transformation unfolds through 2027 and beyond. However, as with any investment, returns aren't guaranteed, and individual company performance will vary.

14 handpicked stocks

Clean Label Snacks

Tap into the growing market for natural food ingredients as major brands like Hershey remove synthetic dyes by 2027. These carefully selected stocks represent companies providing the essential natural colors, flavors, and verification services that food giants need for their clean-label transformations.

Han Tan | Market Analyst

Published on July 2

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Sensient Technologies Corp

SXT

Current price

$91.75

As a leading manufacturer of colors and flavors, Sensient is perfectly positioned to supply the natural color and ingredient systems that food giants ...

As a leading manufacturer of colors and flavors, Sensient is perfectly positioned to supply the natural color and ingredient systems that food giants need for their reformulations.

International Flavors & Fragrances Inc.

IFF

Current price

$61.51

This major producer of flavors and fragrances will see increased demand for its natural ingredient solutions as companies like Hershey reformulate the...

This major producer of flavors and fragrances will see increased demand for its natural ingredient solutions as companies like Hershey reformulate their snack portfolios.

Ingredion Incorporated

INGR

Current price

$119.60

Ingredion turns plant-based materials into value-added ingredients, making it a key supplier for companies seeking natural starches, sweeteners, and t...

Ingredion turns plant-based materials into value-added ingredients, making it a key supplier for companies seeking natural starches, sweeteners, and texturizers.

Darling Ingredients Inc.

DAR

Current price

$31.24

Where Food Comes From Inc

WFCF

Current price

$11.25

McCormick & Company, Incorporated

MKC

Current price

$68.10

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+31.51%

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About This Group of Stocks

Our Expert Thinking

This collection focuses on the suppliers and enablers of the food industry's shift to clean labels. As major corporations like Hershey eliminate synthetic ingredients, these companies will experience growing demand for their natural alternatives, verification services, and supply chain solutions.

What You Need to Know

This theme represents a fundamental shift in food production driven by both consumer preferences and regulatory pressure. The transition to clean labels creates a durable growth market for specialized suppliers who can provide natural ingredients without sacrificing taste or functionality.

Why These Stocks

These companies were selected because they directly benefit from the industry-wide reformulation happening in packaged foods. From natural color providers to third-party verification services, each plays a critical role in enabling major brands to meet growing demand for cleaner ingredients.

Group Performance Snapshot

31.51%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 31.51% over the next year.

12 of 14

Stocks Rated Buy by Analysts

12 of 14 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🍬

Big Brands Are Going Natural

Food giants like Hershey, Kraft Heinz, and Nestlé are reformulating their products right now. This creates immediate demand for the natural ingredients and services these companies provide.

📈

Multi-Year Growth Runway

With Hershey targeting 2027 for its complete transition, these stocks benefit from a clear, long-term catalyst. The industry-wide shift provides years of potential growth ahead.

🛒

Consumer Trends Driving Demand

Shoppers are increasingly checking ingredients lists and demanding cleaner options. Companies that enable this transformation are riding a powerful consumer wave that shows no signs of slowing.

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