Food Packaging Labels are critical to sales

According to a new study by ACNielsen a packages label is a crucial factor in a consumer decision to purchase a product.

The Online Consumer Opinion Survey which was conducted by ACNielsen who asked 21,100 consumers from North America, Central and South America, Asia, Europe and South Africa about tier level of understanding food package labeling, when they would even check the labels on food packaging and what they actually were checking as they were shopping.

The president of ACNielsen Asia Pacific Bienvenido C. Niles Jr commented "For manufacturers of packaged goods, the product's nutritional proposition - whether it appeals to the specific selection criteria of the consumer - and the clarity of the information on the nutrition panel are critical at the point of product trial," and went on to say "Whether the product 'contents' meet the consumers' selection criteria, and how easily the label is understood, can determine whether or not the consumer proceeds to purchase the product, or return it to the shelf."

What I found interesting about this study on packaging labels and how they affect a consumers purchasing response is how local customs and culture have such a strong influence as to whether a consumer will or will not check the labels of food packages as well as how versed they are with what is contained on the packaging labels.

A glaring example of how local customs and habits can influence a consumers interaction with labels on food packaging is that In Japan, for example, consumers place such a high level of trust in well-known manufacturers, and given the strict legal restrictions in Japan which causes consumers to believe that the only products being sold are of the highest quality thus 24 percent of consumers in Japan never even check food labels. Compare this to Thailand where 41 percent and India where 32 percent of consumers claim to always check labels on food packaging.

The study found that North Americans had the best understanding of food labels and nutritional information and awareness of food related health issues such as the consumption of trans fats, but surprisingly still had a significant percentage of consumers who did not check what they eat.

According to Alice Fawver, senior vice president, retail measurement services, ACNielsen US Marketing "Food labels represent an important opportunity for consumer packaged goods manufacturers to differentiate their products and build consumer trust, but the opportunities are lost if labels aren't being read," and that "It is critical for manufacturers to make their labeling as relevant and clear to their consumers as they can, given consumers are making purchase choices based on the information on the packaging. If they can't understand the label, they may not risk the purchase."