Dive Summary:
- In a post on the U.S. Department of Agriculture's (USDA) blog, Steve Martinez, an Agricultural Economist in the USDA's Economic Research Service, highlighted the rise in health claims on food labels and packaging over the last decade.
- The data revealed over 43% of new food products in 2010 put health or nutrition claims on their packaging compared to only 25% in 2001.
- Martinez discovered sales of new products with health claims increased by 171% in 2009 and 2010, as opposed to 145% increase in sales of all new products; Martinez writes the results support the conclusion that health claims drive sales but "without controlling for other factors, such as advertising and price, this doesn't confirm that claims were the reason for higher sales."
(Image credit: USDA)
From the article:
"... But not all claims are created equal. My analysis found that use of 'no fat' or 'low fat' claims fell during the 2001-2010 period, as companies saw consumers shunning fat-free and low-fat versions of foods in the mid-1990s.
Given the recent increase in claim usage, I was also curious about how these claims might be affecting sales. I found that sales of new and reformulated products bearing voluntary claims outpaced sales of new products in general during 2009 and 2010. Sales of new products bearing health and nutrition claims grew by 171 percent versus the 145-percent increase for all new products. Without controlling for other factors, such as advertising and price, this doesn’t confirm that claims were the reason for the higher sales. But the results are consistent with that conclusion."
