![](https://static.wixstatic.com/media/nsplsh_724fef1d1ab44938a9c83e03e7e93660~mv2.jpg/v1/fill/w_980,h_654,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/nsplsh_724fef1d1ab44938a9c83e03e7e93660~mv2.jpg)
As food and beverage entrepreneurs or CPG companies, you may be considering using only “natural” ingredients into your product(s) or going "clean label". While there are many benefits to using natural ingredients, there are also some challenges to consider. The New Flavor has spent many years converting hundreds of products to “natural”, “clean label” and nonGMO for major CPG companies in the food and beverage industry and our hope is to provide inspiration for those brands looking to make similar changes.
In this article, we will explore what natural ingredients are, how they differ from artificial ingredients, and the market research data and trends surrounding consumer demand for natural ingredients. We will also dive into the potential benefits of using natural ingredients, including improved nutritional value, flavor profiles, marketing advantages, and increased consumer trust, with examples of successful products that use natural ingredients. Additionally, we will discuss the challenges of using natural ingredients, such as higher costs, and possible supply chain issues. Finally, we will offer some strategies for overcoming these challenges so that you feel more confident launching or reformulating your products with natural ingredients.
Understanding Natural Ingredients
![](https://static.wixstatic.com/media/nsplsh_667aa16153f84b49a560e471790ab9a8~mv2.jpg/v1/fill/w_980,h_653,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/nsplsh_667aa16153f84b49a560e471790ab9a8~mv2.jpg)
Before we dive into the benefits and challenges of using natural ingredients, let's define what they are. Natural ingredients are ingredients that are derived from natural sources, such as plants, animals, or minerals. They are minimally processed, and do not contain any synthetic or artificial ingredients. This means that natural ingredients are free from additives, preservatives, and artificial colors and flavors. While the FDA does not have a regulatory definition of “natural” they do have a policy that states “The FDA has considered the term "natural" to mean that nothing artificial or synthetic (including all color additives regardless of source) has been included in, or has been added to, a food that would not normally be expected to be in that food.”
How do natural ingredients differ from artificial or synthetic ingredients? Synthetic ingredients are man-made, and they are often cheaper and more stable than natural ingredients. However, they can also be less healthy and less environmentally friendly than natural ingredients depending on the type of ingredient (please don't assume everything that is artificially made is less healthy, there are many artificial ingredients that offer the exact same nutritional benefits as their natural counterparts). On the other hand, natural ingredients can be more expensive and less stable than synthetic ingredients, but they are generally perceived as healthier, more environmentally friendly, and more appealing to consumers.
Consumer Demand for Natural Products
![](https://static.wixstatic.com/media/b7f1f6_37e7b42a1d174c59bfe4313b8b2bf9e9~mv2.jpg/v1/fill/w_980,h_697,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/b7f1f6_37e7b42a1d174c59bfe4313b8b2bf9e9~mv2.jpg)
Market research data and trends surrounding consumer demand for natural ingredients show that there continues to be a growing demand for natural products. According to the "2022 Food and Health Survey" conducted by the International Food Information Council (IFIC) Foundation. The survey found that consumer preference for products labeled as "natural" increased, with 39% regularly purchasing products labeled as "natural." Additionally, 54% of consumers surveyed thought that natural foods were healthier for them. The survey also found that the purchase intent for natural foods is also driven by a desire for more nutritious, higher quality products as well as a mistrust of processed and artificial ingredients.
Benefits of Using Natural Ingredients
![](https://static.wixstatic.com/media/1cc85cbea2ae49e3abdecbb7a4bc6904.jpg/v1/fill/w_980,h_656,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/1cc85cbea2ae49e3abdecbb7a4bc6904.jpg)
Using natural ingredients in food product development can offer several benefits, including:
Possibility for Improved nutritional value: Depending on the ingredients and application, natural versions can often times be more nutrient-dense than synthetic ingredients, and they can provide more vitamins, minerals, and antioxidants.
Better perceived taste: Natural ingredients can be perceived to enhance the taste and aroma of food products, providing a more authentic and satisfying eating experience. Market Research
Marketing advantages: Most likely the marketing advantages of using natural ingredients in your products will be your companies’ biggest selling point, as they appeal to consumers who are looking for better-for-you options.
Increased consumer trust: Using natural ingredients can help build trust with consumers, as they perceive natural ingredients as healthier and safer than artificial ingredients. For consumers seeking natural products, when they see ingredients in your product that they “can actually read” compared to ones that sound like chemicals, they are more likely to purchase your product and tell others about it as well.
Regulatory and legal advantages: When you use strictly natural ingredients, you are less likely to be subjected to regulatory lawsuits, regulatory law changes and consumer interest groups coming after your brand. Just be sure to conduct your research on the natural versions of the ingredients you plan to use, obtaining any certifications, label or processing claims from your vendors and if necessary, obtaining legal advice.
Examples of successful products that use natural ingredients include KIND Bars, which are made with whole ingredients like nuts, seeds, and fruits, and RXBARs, which are made with egg whites, dates, and nuts. These products have gained a loyal following because of their natural and wholesome ingredients, ingredient transparency, short ingredient list as well as their delicious taste.
Challenges of Using Natural Ingredients
![](https://static.wixstatic.com/media/nsplsh_6fc8de0f5b6645879895ec914cedfb75~mv2.jpg/v1/fill/w_980,h_663,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/nsplsh_6fc8de0f5b6645879895ec914cedfb75~mv2.jpg)
While there are many benefits to using natural ingredients, there are also some challenges to consider. These challenges include:
Higher costs: Natural ingredients are often more expensive than synthetic ingredients, which can increase your Cost of Goods Sold (COGS) and limit profit margins depending on your product and market. Costs may also vary from year to year, especially for commodity items, so your financials may be harder to plan around.
Supply Chain issues: Natural ingredients, such as fruit based ingredients, may not be available year-round, or may only be available from specific regions or suppliers.
Shorter shelf-life: Natural ingredients may have a shorter shelf-life than synthetic ingredients, which can increase the risk of spoilage and lead to product waste. For example, products that contain natural oils or fats can go rancid more quickly than products made with synthetic oils. This can be especially challenging for small businesses with limited storage space and resources.
Batch-to-batch variability: The use of natural ingredients can result in batch-to-batch variability in product quality, flavor, and texture. This can be due to natural variations in the crop or raw materials used, as well as differences in processing conditions. While some degree of variability is expected and even desirable in artisanal or craft products, it can be problematic for larger-scale production where consistency is key.
Processing Differences: When you convert to natural ingredients, your processing parameters will need to be evaluated and can possible change significantly. Consider the use of buffers in a dairy based product. A more natural buffer may not have the same level of protein protection resulting in an inferior product from a texture standpoint. Or consider the removal of preservatives - you may now need to pasteurize your product. An entirely different processing approach may need to be invested in before going natural in your products.
Potential for food safety issues: Natural ingredients, especially those that are minimally processed, may carry a higher risk of foodborne pathogens, such as bacteria and parasites. This is because natural ingredients are not typically treated with chemical preservatives or antimicrobial agents. Additionally, natural ingredients may be more prone to contamination during harvesting, transportation, and storage.
Regulatory compliance: The use of natural ingredients can also present challenges related to regulatory compliance. In some cases, natural ingredients may be subject to more stringent regulations than their synthetic counterparts. For example, natural food colorings are subject to more rigorous testing and certification than artificial colorings. It's important for food companies to understand the regulatory landscape and ensure that their products meet all relevant standards and guidelines.
Overcoming the Challenges
Identifying reliable suppliers: To ensure consistent quality and availability of natural ingredients, it's important to work with reliable and reputable suppliers. This may involve establishing long-term relationships with farmers, co-ops, or other producers, and conducting regular audits of their facilities and practices. Additionally, we advise having more than one vendor for your natural ingredients as a safety precaution for your brand. This will help you overcome pricing adjustments, supply chain disruptions, etc.
Adjusting formulations and processing techniques: To address challenges related to shorter shelf-life and batch-to-batch variability, food companies can adjust their formulations and processing techniques to optimize product stability and consistency. For example, they may use natural preservatives or antioxidants to extend shelf-life, or employ specialized equipment and techniques to ensure consistent texture and flavor. You may have to use gentler processing methods as well as to protect the natural ingredients and their subcomponents.
Proper labeling and marketing: Clear and accurate labeling is key to building consumer trust and avoiding regulatory compliance and legal issues. We recommend that our clients be as thorough about checking the ingredients they use are natural if they plan to make any claims, including any processing aids or ingredient subcomponents that may not be considered “natural”. They should also avoid making misleading or exaggerated claims about the health benefits or other properties of their products.
Building consumer trust through transparency: Consumers are increasingly interested in knowing where their food comes from and how it's made. By being transparent about their sourcing and production practices, food companies can build trust and loyalty among their customers. This may involve sharing information about the specific farms or producers they work with, as well as their sustainability and social responsibility initiatives.
Balancing cost and quality: Finally, it's important for food companies to balance the cost and quality of natural ingredients. While natural ingredients may be more expensive than synthetic ones, they can also offer unique flavor profiles and nutritional benefits that can justify a higher price point. By carefully managing their supply chain and production processes, food companies can find ways to incorporate natural ingredients into their products without compromising profitability.
![](https://static.wixstatic.com/media/b7f1f6_5792da640c214755b1e414dd58ccda5a~mv2.jpg/v1/fill/w_980,h_699,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/b7f1f6_5792da640c214755b1e414dd58ccda5a~mv2.jpg)
In conclusion, natural ingredients have been and continue to be in high demand with consumers across food and beverage industry segments. Natural Ingredients offer a range of potential benefits for your products, including improved nutritional value, better flavor profiles, and increased consumer trust. However, they also present a number of challenges, such as higher costs, limited availability, shorter shelf-life, and regulatory compliance issues. By understanding these challenges and taking proactive steps to overcome them, food companies can successfully incorporate natural ingredients into their products and meet the growing demand for more natural or better-for-you food options. As a company that specializes in helping entrepreneurs and big brands bring their food and beverage visions to life, The New Flavor is committed to supporting you in navigating these challenges and realizing your goals.
Comments