Shoppers Are Reading Labels More Closely — Here’s How Brands Can Respond
There are growing concerns from U.S. consumers about artificial ingredients and increased awareness of product labels when making purchasing decisions, according to a new shopper study from the Acosta Group.
More than half (58%) of shoppers in the study reported that they read ingredient labels before buying, rising to 87% among health-focused consumers, underscoring the importance of transparency for brands.
"Transparency is part of the product experience; it's table stakes once shoppers adopt it as a habit,” Kathy Risch, senior vice president of thought leadership and insights at Acosta, told the Path to Purchase Institute.
The shift has been building for some time, with shoppers increasingly paying attention not just to what products contain, but also to what they leave out, according to Risch.
"Ingredients are no longer just functional components — they've become shorthand for trustworthiness, ethics, and health or safety risks," she noted.
What's Driving Label Engagement
Two-thirds of omnishoppers balance their food choices between healthy and indulgent ingredients based on taste, product availability, occasion and mood.
However, a large portion of consumers prefer products that promote health and wellness: 35% of shoppers try to eat mostly healthy foods, with occasional treats. Additionally, 15% of Gen Z and 21% of Millennials actively choose nutritious foods, avoid processed options and prioritize health when making food choices, regardless of cost.
Label reading is also on the rise, with 40% of health-conscious shoppers and 39% of Gen Z reading labels more than they did six months ago. Since many consumers seek this information, it’s essential to make it easy to find and understand on packaging.
"Shoppers are looking for quick answers delivered with easily understood descriptions, as well as the ability to ‘learn more’ via a QR code on the package and information on the product website,” said Risch. “They're also looking for proof points beyond brand reputation via source stories, third-party certifications, and clinical research. And these proof points should be amplified with social media and easy comparisons with AI support.”
How Brands Can Build Trust
Risch emphasized that brands can build trust through transparency, acknowledge what consumers want to hear, avoid absolute language and balance the use of "free" in language, which is often not possible.
For some people, reading labels serves various purposes, such as managing weight, addressing digestion problems, or handling specific allergies. More than 25% of households report having someone with allergies or sensitivities, and 75% of these shoppers read labels all or most of the time.
When purchasing beauty products, consumers adopt a more balanced approach, with some choosing items made with cleaner ingredients and others prioritizing clinically proven results. In skincare, if the price remains the same, 42% of shoppers prefer natural products, while 39% opt for results-focused items that are FDA-approved or clinically proven effective.
Ultimately, brands have to find the right balance.
"By positioning your brand as 'responsible efficacy,' you're able to address both ingredient integrity and performance,” said Risch. “One recommendation is to ensure that neither pillar undermines the other, as there are benefits to both. Also, consider navigation tools on the package and online, such as icons for 'dermatology tested, clinically tested or fragrance-free,' and QR codes that link to the full testing summary and ingredient rationale."
Risch warned that many brands may still have blind spots in their ingredient integrity and product performance, which could cause more harm than good.
"To build consumer trust, brands need to do more than publish an ingredient list. They need to layer in interpretation, standards and proof to avoid consumers having to interpret, sometimes incorrectly, for themselves," she said.
Because consumers are skeptical about overclaims or vague claims, using defined, testable claims are essential.
"It's important to remember that all consumers seeking ‘clean’ are not the same. Brands need to understand their audience.”
