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.

15 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

Updated 2 days ago | Published at जुलाई 2