Understanding Food Labeling - Regulations, Impact

Updated on :October 18, 2023

ABSTRACT: 

Food labels are considered an essential component to combat unhealthy diets and obesity. Food labeling is important in alerting consumers about the ingredients, quality, and safety of food products. Whether consumers are youth, kids, older adults, educators, nutritionists, physicians & healthcare providers, or dieticians, there is no denying that the nutrition label of any food product takes the prime attention while making a purchase or managing health and dietary intake. By using the information provided in the Nutrition labels, consumers can more effectively and quickly make informed decisions and manage a healthy diet. Paying attention to the serving size, calories, expiry date, nutrient information, and daily value can help consumers with their personal dietary needs.

The desire for transparency and healthy food options can be the driving factor for the increased attention, modernization, and regulation of food labels. 

This research article from GoodFirms titled “Understanding Food Labeling - Regulations, Impact” aims to reveal the role of food labeling, its challenges, impact, and predicted future requirements of utilitarian labels. 

Introduction

Consumers tend to trust food labels while purchasing a food product. Unclear and deceptive food labels, especially in processed foods, often mislead consumers and have been potentially dangerous. Moreover, most of the food labeling Acts require an update. Many are un-altered for several years. Additionally, consumers of yesteryears are different from those of today. Eating habits have changed, and so have the awareness. New technologies have come up, and concerns about sustainability are turning out to be the top priority of many Governments and individuals. Easily readable and well-accessible information (front-of-package labeling system) about the food ingredients, nutritional value, expiry, manufacturer, etc., stand as clarified guidelines and bring transparency to the consumers. A modernized labeling system like the newly launched Food Labeling Modernization Act (1) can reform outdated labeling rules that wreck the intention to buy healthy food products and allow buyers to evaluate the products and make well-informed, healthy choices.

GoodFirms research article ‘Understanding Food Labeling - Regulations, Impact’ is a small attempt to understand food labeling, its purpose, its impact on consumer buying behavior, the regulations, and the future trends of food labeling.

survey on global food labeling market

Purpose of Food Labeling

Food labeling plays a vital role in guiding and educating consumers in making dietary decisions. They contain information about food ingredients, nutritional content, and country of origin. Food label information assists consumers in making healthier choices, such as selecting items low in fat, calories, and sodium.

Food labeling regulations are primarily intended to protect customers from misleading information, assure proper nutritional content portrayal, and encourage informed decision-making. These regulations vary from country to country, but many have common characteristics, such as mandated ingredient labeling, nutritional information, allergens, and country of origin. 

Food labeling requirements have a wide-ranging impact. Accurate and unambiguous labeling allows customers to make informed food choices, empowering them to make better choices and fulfill dietary preferences or restrictions.(2) Labeling also helps to raise food safety knowledge, lowering the danger of allergy exposure or consuming harmful substances.

Complex labeling rules pose a problem for food producers and manufacturers. Compliance necessitates an investment in resources, such as precise product testing, labeling design, and packaging and marketing material upgrades. Noncompliance may result in monetary penalties, product recalls, and reputational harm. Compliance with labeling standards, on the other hand, can increase customer trust and boost brand loyalty.

Regulatory authorities are critical in enforcing food labeling requirements, checking compliance, and responding to consumer concerns. They attempt to strike a balance between safeguarding consumer interests and promoting industrial growth. As food labeling standards evolve, regulatory authorities are adapting to new issues, such as online food sales and technological advancements that may have an impact on labeling.

Food labeling has varied purposes and performs various key roles. The primary goal is to give consumers important information about the food products they purchase and consume. 20% of Americans use food labels to make healthy choices.(3) 

The following are the major objectives of food labeling:

1) Help Consumers Make Informed Decisions 

Food Labeling informs consumers about the ingredients, nutritional value, fats, and composition of a food product. It assists consumers in making better decisions based on their dietary requirements, choice, and health concerns. It enables them to identify specific ingredients, allergies, and nutritional content, allowing them to choose foods that meet their dietary needs or constraints. All pre-packaged foods sold in retail stores, online, and through vending machines are required to be labeled. The label must be written in English and the official language of the state where the food is sold.(4)

quote on food labeling by jeff bezos

2) Alerts Consumers 

Food labeling plays an important role in food safety as it helps in alerting customers about the allergies or compounds used in the product that may cause harm. People suffering from common allergies to food items such as peanuts, tree nuts, milk, eggs, wheat, soy, fish, and shellfish must be clearly identified on food labels. This information is of utmost importance for those individuals having food allergies or intolerances so that they can avoid using such food items that may be harmful to their health.

3) Fosters Transparency

Labeling fosters transparency and consumer trust by providing accurate and dependable information about the product's origin, production procedures, and any added chemicals. It enables customers to evaluate the quality, authenticity, and integrity of the food they are purchasing. Labeling practices that are honest and transparent help to build confidence between customers and food producers.

4) Adhere to Rules and Regulations

Food labeling regulations ensure that food producers and manufacturers adhere to the standards and norms established by food regulatory authorities. These regulations aid in maintaining consistency and the prevention of misleading or deceptive claims on food product labels. Standardized labeling rules promote fair competition, provide accurate food product descriptions, and protect consumers from deceptive marketing practices.

5) Protects the Health and Nutrition of the Consumers

Food labels include nutritional information such as calorie content and nutrient quantities such as fat, sugar, sodium, and vitamins. Consumers need to know their calorie intake so as to make healthier decisions and monitor their daily consumption of key nutrients. Food labeling also helps to raise awareness about nutrition-related health issues including the risk of eating too much salt or sugar.

6) Systematized Labeling Standards 

It allows food companies to comply with consistent labeling requirements to meet the import and export requirements of their products to different countries/cities. Food brands can obtain access to global markets and increase their customer reach by complying with international standards such as the Codex Alimentarius rules.

7) Informing about Certain Food Claims

Food labels must include specific health claims or labels, such as "low-fat," "gluten-free," or "organic." (5) These claims help to provide more details on the product's features, making it easier for consumers to choose items that match their dietary preferences, limits, or health goals.

In short, the primary purpose of food labeling is to provide consumers with the details they need to make healthy eating decisions and habits, assure food safety, develop transparency and confidence, and facilitate fair trade practices in the food production and manufacturing industry.

Components (Rules) of Food Labeling

components of food label

Food labels help in empowering and informing people about the nutritional components and potential health consequences of the food item they buy, eat, and make healthy lifestyle choices. While food labels are vital for consumer health, it is also important for individuals to evaluate and use this information in conjunction with broader dietary guidelines and professional assistance. The Food and Drug Administration (FDA) of the United States has set standards governing the details that must be listed on food labels.(6) The FDA requires the following information on all food labels:

Name of the Product: The label must clearly state the food product's common or normal name. 80% of consumers see the label while making food purchase decisions.(7)

Net Quantity: The label must include the product's net weight, volume, or count. It must specify these details on the food package so as to aid consumers in product comparison and purchasing decisions.

Manufactured Date & Expiry Date: Date markings are required on certain expirable food items, such as dairy products and packaged meats, to identify the expiration date, sell-by date, or best-before date. This information aids consumers in ensuring the product's freshness and safety.

Nutrition Facts: A list containing nutritional values on the label must provide information about the nutritional content of the food. Serving size, calories, macronutrients (such as fat, carbs, and protein), vitamins, minerals, and other essential nutrients must be listed. The FDA has modified the format and particular elements necessary in the Nutrition Facts panel in recent years to provide clearer and more relevant information to consumers.(8)

Ingredient List: The ingredients used in the preparation of the product according to their weights must be listed on the label. This assists customers in identifying specific components, such as allergens or additives, and choosing food products according to their dietary needs and preferences. 

Serving Size: Serving size is the amount of food product that is customarily consumed by people. It is mentioned on the food label in household measures like a cup, slice, tablespoon, jar, or piece, followed by metric amounts in gram. The nutritional values mentioned on the food label are generally, in terms of per serving, which can help consumers understand the value of nutrients they are consuming based on the servings they are consuming.(9)

Country of Origin: Country of origin labeling gives the information about the country where the product is manufactured. Country of Origin Labeling(COOL) is required on products including muscle cut and ground meats, wild and farm-raised fish and shellfish, frozen and fresh fruits and vegetables, nuts, etc.

Manufacturer's Information: The manufacturer, packaging company, or distributor's name, country, and address must be included on the label. Consumers can use the manufacturer’s detail to contact the relevant party in case of any queries or concerns regarding the product.

Allergen Information: The FDA has defined food allergens that must be clearly indicated on the label. So as to assist consumers in avoiding potential allergens, such information must be properly mentioned on the labels.

Food production companies, manufacturers and distributors are supposed to ensure FDA compliance and provide accurate and complete information on food labels.

Different Types of Claims Found on Food Packages

Food packages contain various types of claims to highlight specific product traits or qualities. These claims are intended to attract customers, convey specific information, or meet regulatory obligations. Here are some examples of popular claims found on food packages:

Nutrient Content Claims: These claims indicate the amount of a particular nutrient or dietary component in a product. Examples include "added sugar," "high fiber," “not a low sodium food,” and "good source of vitamin D and potassium."(10) To ensure uniformity and accuracy, these claims are governed by precise criteria established by the FDA or other regulatory agencies.

Organically produced food claims: It suggest that the product was grown using organic agricultural practices and not to include the use of synthetic fertilizers, pesticides, antibiotics, or genetically modified organisms (GMOs). GMO labeling lessens the importance of price for customers and increases their willingness to pay for non-GM items.(11) The phrase "organic" is required to be certified by an authorized body.

Structure/Function Claims: Without making specific health claims, structure/function claims describe how a nutrient or component impacts the functional process of the body. This is based on the Dietary Supplement Health and Education Act of 1994 (DSHEA) which defines and even regulates dietary supplements.(12) These statements do not need FDA approval, but they must be true and not misleading. For example, "supports joint health" or "promotes digestive health."

Made in/From Claims: Made in/from claims identify the product's origin or source. Examples include "made in the USA," "product of Italy," and "made with local ingredients." These claims inform about the product's origin or manufacturing process, which is important to customers who value specific sourcing or support local businesses.

Allergen Claims: These claims emphasize the absence/presence of specific allergens in the product or suggest that the product is appropriate/not for people who have allergies or dietary restrictions. For example, "gluten-free," "dairy-free," or "nut-free." These statements are critical for people who have specific food allergies or sensitivities.

Health Claims: A nutrient or food component is linked to a specific health benefit in a health claim. "Calcium, for example, can help build strong bones." Health claims need scientific evidence and are subject to FDA rules. For example, "may reduce the risk of heart disease" or "supports immune function."

Free-from claims: It suggests that the product does not contain specified ingredients or components. For example, "no artificial colors," "no preservatives," or "no added sugars." These claims highlight certain characteristics of the product and may appeal to consumers looking for items free of certain ingredients.

Environmental Claims: Environmentally friendly practices or sustainable ingredients are mentioned in many food containers/packages. Examples include "fair trade," "sustainably sourced," and "carbon-neutral." These statements are intended to entice consumers who prefer environmentally friendly food products and are willing to pay higher.(13)

Therefore, it is clear that food labeling varies according to the country, and claims must adhere to the regulatory criteria established by the respective authorities. Consumers need to be aware of the specific criteria and definitions underlying these claims, as well as critically examine the product's overall nutritional composition and ingredients before buying.

Challenges of Food Labeling

Technical and regulatory challenges of foods, nutrition information, and labeling are regularly addressed by the authorized committees like the Codex Committee on Nutrition and Foods for Special Dietary Uses (CCNFSDU) Guidelines are set and amended with age by the Codex Committee on Food Labeling  (CCFL) to help consumers make right and well- informed food choices. Despite such efforts, there are challenges in food labeling. The following are a few challenges.

quote on codex guidelines

Compliance with Regulatory Authorities

Each country has its own food labeling legislation and requirements. Compliance with these standards can be challenging, particularly for multinational food manufacturers and producers who must comply with these sets of requirements. Keeping up with changing rules and ensuring proper labeling can be difficult to accomplish.

Packaging Constraints 

Food labels are required to provide detailed information in a limited space on the packaging. It becomes challenging to balance the necessity for clear and understandable language, font sizes, and pictures, along with regulatory restrictions. It is difficult to ensure that labels are easily visible, readable, and not misleading while remaining aesthetically presentable.

Accuracy of Nutritional Information 

Providing accurate and complete nutritional information is necessary for customers to make correct food product buying decisions. However, because of variances in ingredients, processing techniques, and even serving sizes, finding accurate nutritional content is difficult. It can also be challenging to ensure the quality and consistency of nutritional information across different batches and products.

Marketing and Advertising Claim 

Food labeling also includes claims about health advantages, organic status, sustainability, and other factors. It can be difficult to verify and substantiate these claims because they may require scientific proof or approval from authorized organizations. Regulators generally scrutinize these claims to ensure that customers do not receive misleading or inaccurate information.

Linguistic and Cultural Barriers 

In the global marketplaces, linguistic and cultural variations make food labeling more challenging. Label information is, at times, difficult to translate accurately in a variety of languages while taking cultural sensitivities and preferences into account. 

Allergy Labeling 

Proper allergy labeling is vital for consumers who have food allergies or intolerances. Identifying and labeling all potential allergens in a food product is important, especially in processed goods with many ingredients or potential cross-contamination issues. Another problem is maintaining stringent protocols and traceability across the supply chain to avoid unintentional allergen exposure.

Educating Consumers

Sometimes it is difficult for consumers to understand food labels while making eating and buying decisions. Technical or scientific jargon, brief nutritional information, and various symbols or emblems are found on labels. Educating customers on how to correctly interpret these symbols on labels and giving clear, succinct, and standardized information helps improve understanding and decision-making.

Therefore, food producers and manufacturers, and regulatory agencies keep up-to-date monitoring of changing rules and their proper compliance. Technical advances in labeling systems and continual consumer education are ensured to improve the accuracy, clarity, and utility of food labels. 

The future of food labeling is predicted to shift dramatically as consumer preferences and regulatory compliance evolve. Consumers are more keen to understand what they eat. Here are some future trends that could influence food labeling in the future:

Personalized Products with Personalized Food Labeling

Different foods influence different people as nutrition science advances. Traditional nutrition facts panels can be supplemented with more personalized and contextualized information through nutritional profiling. Therefore the creation of personalized nutrition regimens that are tailored to the individual's specific needs and preferences is likely to be seen in the coming years. To match this trend, food labels will need to develop, giving customers more information on the nutritional value of foods and how they will influence their individual health.

More Emphasis on Food Production/Origin

Consumers are becoming increasingly interested to know about food origination and its production. As a result, food labeling may include more specific information about the origin of components, manufacturing procedures, and supply chain transparency. 

AI will Play a Greater Role in Food Labeling 

Technology is becoming increasingly significant in the food sector, which has an impact on the future of food labeling. AI will be used to create new methods for analyzing food labels and making them more accessible to consumers. Blockchain technology and QR codes can be used to provide real-time information about a product's manufacturing.(14) Smart packaging or digital interfaces could deliver real-time nutritional information as well as track consumption trends to make personalized recommendations.

Sustainability and Environmental Impact 

As environmental concerns are at their peak, food labels may begin to include information on a product's sustainability and environmental impact. Labels may indicate carbon footprints, water usage, or ecological certifications, helping consumers to make better-informed decisions that are consistent with their environmental beliefs and promote human health and well-being.(15)

Evolution of Health Claims and Front-of-Package Labels

Regulations for health claims and front-of-package labels are likely to evolve in order to guarantee more accuracy, evidence-based, and not misleading to customers.(16) Authorities may establish stronger restrictions to prevent exaggerated or false statements, allowing customers to make more informed decisions free of uncertainty or disinformation.

Digitalization

The growth of smartphones and connected devices will provide great opportunities for combining digital technology with food labeling. AR or VR experiences could give interactive product information, cooking directions, or allergen alerts. Additional information, such as user reviews, nutritional analyses, or recommendations based on personal choices, may be available through mobile apps or internet platforms.

Allergen and Ingredient Information

With the increasing rate of food allergies and dietary restrictions, food labels will certainly include more detailed information on allergens and ingredients. Clearer allergen labeling, such as highlighting common allergens in bold or offering allergen statements for cross-contamination dangers can be added. Ingredient lists will become extensive, including specific sources of ingredients and the presence of additives or preservatives.

The future of food labeling will be affected by industry innovation, regulatory frameworks, shifting consumer needs and technological improvements. Food labels will become more informative, personalized, and interactive as these trends continue to evolve. This will enable customers to make more informed dietary choices and will help improve their overall health.

Key Findings

  • Food labeling plays a vital role in guiding and educating consumers in making dietary decisions.
  • Food labeling plays an important role in food safety as it helps in alerting customers about the allergies or compounds used in the product that may cause harm.
  • Labeling fosters transparency and consumer trust by providing accurate and dependable information about the product's origin, production procedures, and any added chemicals.
  • Food packages contain various types of claims to highlight specific product traits or qualities. These claims are intended to attract customers, convey specific information, or meet regulatory obligations.
  • Each country has its own food labeling legislation and requirements.
  • Food labels are required to provide detailed information in a limited space on the packaging.
  • Providing accurate and complete nutritional information is necessary for customers to make correct food product buying decisions.
  • The future of food labeling is predicted to shift dramatically as consumer preferences and regulatory compliance evolve.
  • AI will be used to create new methods for analyzing food labels and making them more accessible to consumers.
  • Blockchain technology and QR codes can be used to provide real-time information about a product's manufacturing. 
  • As environmental concerns are at their peak, food labels may begin to include information on a product's sustainability and environmental impact. 
  • Technology is becoming increasingly significant in the food sector, which has an impact on the future of food labeling. 
  • The growth of smartphones and connected devices will provide great opportunities for combining digital technology with food labeling.
  • The future of food labeling will be affected by industry innovation, regulatory frameworks, shifting consumer needs and technological improvements.

Conclusion

Food labeling is critical for consumers to make better decisions about the food items they purchase and consume. Food labeling regulations help in providing transparency, safety, and correct information for customers. These requirements differ from one country to another, but they consistently emphasize giving information such as ingredients, nutritional content, allergens, and manufacturer information.

Effective labeling of Food products promotes healthy eating habits and addresses public health challenges (obesity and chronic diseases).

cta image for best packaging design companies

Food labeling also has a big impact on food production practices and sustainability. It enables customers to find products that correspond to their ideals, such as vegan, organic, fair-trade, or ecologically friendly solutions. Labels revealing the origin of ingredients, as well as supply chain transparency, contribute to food sector traceability and accountability, building consumer trust and supporting ethical manufacturing practices.

Food labeling is likely to evolve further in the future as a result of changing customer preferences, technology breakthroughs, and changes in the regulatory framework. Increased transparency and traceability, improved allergen and ingredient information, personalized nutrition profiling, sustainability indicators, and digital integration are all part of this. These improvements are intended to empower customers, enhance food safety, encourage healthier lifestyle choices, and address environmental problems.

In this ever-changing environment, it is crucial for consumers to stay aware and assess food labels. Individuals may navigate the variety of food products in the market, make choices matching their dietary needs and values, and contribute to a healthier and more sustainable food system by knowing food labeling standards and their impact.

References

  1. https://www.markey.senate.gov/news/press-releases/markey-joins-pallone-and-blumenthal-in-introducing-food-labeling-modernization-legislation

  2. https://pubsonline.informs.org/doi/abs/10.1287/mksc.2022.1356 

  3. https://www.dietaryguidelines.gov/sites/default/files/2020-12/Dietary_Guidelines_for_Americans_2020-2025.pdf

  4. https://www.fssai.gov.in/upload/uploadfiles/files/Compendium_Labelling_Display_30_06_2022.pdf

  5. https://www.fao.org/fao-who-codexalimentarius/thematic-areas/nutrition-labelling/en/#:~:text=The%20role%20of%20Codex%20in,%2C%20%22high%20fat%22%20etc

  6. https://www.registrarcorp.com/fda-food/labeling/

  7. https://www.researchgate.net/publication/348624314_Food_Labeling_Analysis_Understanding_and_Perception

  8. https://www.fda.gov/media/135197/download

  9. https://www.fda.gov/food/new-nutrition-facts-label/serving-size-new-nutrition-facts-label#:~:text=The%20serving%20size%20is%20shown,amount%20in%20grams%20(g)

  10. https://www.hsph.harvard.edu/nutritionsource/food-label-guide/

  11. https://journals.sagepub.com/doi/abs/10.1177/00222429211064901?journalCode=jmxa

  12. https://en.wikipedia.org/wiki/Dietary_Supplement_Health_and_Education_Act_of_1994#cite_note-OIGlabels-8

  13. https://www.sciencedirect.com/science/article/abs/pii/S0959652621042128

  14. https://link.springer.com/article/10.1007/s13197-022-05360-0

  15. https://academic.oup.com/advances/article/13/1/38/6400438

  16. https://www.gov.mb.ca/agriculture/food-and-ag-processing/starting-a-food-business/pubs/food-labelling.pdf

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