The US Food and Drug Administration (FDA) has announced sweeping changes to how nutritional information is displayed on packaged foods. Under a rule proposed on January 14, 2025, food manufacturers would be required to feature a prominent “Nutrition Info box” on the front of most packages. This new labelling system aims to simplify consumer choices by categorising key nutrients – saturated fat, sodium, and added sugars – as “low,” “medium,” or “high,” offering a straightforward snapshot of a product’s health profile.
This initiative addresses mounting concerns over diet-related chronic diseases like diabetes and heart conditions, which place an increasing burden on public health systems. By streamlining how nutritional content is presented, the FDA seeks to empower consumers to make healthier choices quickly. The public has until May 16, 2025, to comment on the proposal, which could take effect as early as 2028 if finalised.
The proposal builds on recent FDA initiatives, including updates to the definition of “healthy” labelling and revisions to the Nutrition Facts panel. These efforts underscore a broader push for transparency and accountability in the food industry, setting the stage for a paradigm shift that could transform how consumers, manufacturers, and marketers engage with food products.
Countries like Australia, the UK, and Chile have pioneered FOP labelling systems, reshaping consumer behaviour and driving industry reform. The US now aims to join this global push for nutritional transparency, marking a critical step in aligning domestic policies with international trends.
The FDA’s proposal represents a pivotal shift in how nutritional information will appear on packaged foods. At its core is the mandatory placement of a “Nutrition Info box” on the front of most packages, categorising saturated fat, sodium, and added sugars as “low,” “medium,” or “high” based on established dietary thresholds. This design aims to provide consumers with immediate, clear insights, eliminating the need to search for details on the back of the packaging.
The proposed changes respond to escalating public health challenges tied to diet-related conditions. With nearly 42% of American adults classified as obese, according to the Centers for Disease Control and Prevention (CDC), the FDA sees clear labelling as a vital tool to promote healthier dietary choices and combat chronic diseases.
Industry reactions to the FDA’s proposal have been divided. Health advocacy groups applaud the initiative’s potential to simplify nutrition labelling and encourage informed choices. Meanwhile, food manufacturers voice concerns over the costs of redesigning packaging and reformulating products. Some critics warn that simplified labels may sacrifice nuance, potentially misleading consumers about broader nutritional contexts.
Despite expected industry resistance, the FDA remains firm in its commitment to align US policies with global standards for nutritional transparency. The underlying message is clear: food manufacturers must evolve to meet the demands of a health-conscious consumer base.
As the US moves toward implementing new nutrition labelling, lessons from countries like Australia, the UK, and Chile provide critical insights into the challenges and opportunities ahead. These case studies reveal how policy changes can reshape consumer behaviour and transform industry practices.
Australia’s Health Star Rating system, launched in 2014, rates foods on a 0.5 to 5-star scale to help consumers quickly gauge nutritional quality. Ratings consider key factors like sugar, sodium, and saturated fat, as well as beneficial elements such as protein and fibre, offering a balanced assessment of overall healthiness.
Impact on Consumer Choices:
Research shows the Health Star Rating system has reshaped consumer habits, particularly among health-conscious buyers. Products with higher ratings consistently drive sales, demonstrating the power of clear, accessible labelling in influencing choices.
Industry Adaptation:
Manufacturers have adapted by reformulating products to secure higher ratings, often lowering sugar and sodium levels. Many brands now feature star ratings prominently in marketing, using them to stand out in competitive markets.
The UK’s traffic light labelling system, launched in 2013, uses red, yellow, and green to indicate high, moderate, or low levels of calories, sugar, fat, and salt. This intuitive design offers consumers a quick and clear understanding of a product’s nutritional content.
Consumer Preferences:
Studies reveal the colour-coded system resonates with consumers, simplifying the identification of healthier choices. Shoppers consistently favour traffic light labels over numeric formats, especially during time-pressed grocery trips.
Influence on Buying Behaviour:
The traffic light system has been linked to shifts in consumer purchasing patterns, with a measurable decline in sales of products marked with red indicators. This has prompted many manufacturers to reformulate products, particularly those high in sugar and salt, to avoid red labels and maintain competitiveness.
Chile led the way in 2016 with mandatory warning labels, using bold black-and-white icons to flag products high in sugar, sodium, calories, or saturated fat. This model has since been adopted across Latin America, including Peru, Mexico, and Uruguay.
Impact on Product Development:
The warning labels spurred widespread product reformulation. Many companies lowered sugar content to avoid high-sugar warnings, a designation that risks alienating health-conscious shoppers.
Marketing Adjustments:
Marketing practices have also been affected, as products with multiple warning labels often face negative consumer perceptions. Some brands have shifted focus to promoting healthier product lines and emphasising natural ingredients to rebuild trust.
The US now has an opportunity to leverage these global learnings, ensuring its approach not only improves public health outcomes but also fosters innovation and accountability across the food industry.
US consumers are calling for greater clarity in food labelling. According to a 2023 International Food Information Council (IFIC) survey, 63% of Americans actively look for nutritional details when shopping, a sharp increase in recent years. Yet nearly half report feeling overwhelmed by current labels, underscoring the need for clear FOP solutions.
These generational shifts have made transparency not just a preference but a baseline expectation for food brands, influencing how companies market their products and connect with their target audiences.
Transparency is no longer optional – it’s a baseline expectation for today’s informed, health-conscious consumers. As the FDA’s FOP labelling proposal advances, brands that embrace this demand will position themselves to succeed in an increasingly competitive market.
Adapting to the FDA’s new labelling rules brings challenges but also opens doors for innovation. Market research, especially package testing, is critical for meeting regulatory demands while keeping consumers engaged. By leveraging targeted testing methods, brands can fine-tune packaging to deliver clear nutritional information and maximise consumer appeal.
A/B testing enables brands to compare FOP label designs and identify what best captures consumer attention. For example, testing can assess:
By evaluating consumer preferences and purchase intent, A/B testing ensures packaging meets FDA standards without sacrificing visual appeal or branding.
Eye-tracking studies provide detailed insights into how consumers engage with FOP labels. These studies help brands analyze:
By understanding visual patterns, brands can optimise label size, placement, and design to ensure critical information stands out in busy retail settings.
Message testing helps brands pinpoint the nutritional claims that resonate most with their audience. This includes:
Effective market research can uncover both opportunities and risks, such as the potential trade-offs between sugar reduction and perceived taste quality.
Investing in package testing equips brands to navigate the FDA’s FOP labelling rules with precision. These tools not only ensure compliance but also help optimise packaging to meet consumer expectations and build loyalty in an evolving, health-conscious market.
Nestlé: In Chile, where warning labels are mandatory, Nestlé used A/B testing to redesign packaging, reducing negative perceptions of sugar content while maintaining a family-friendly appeal. These changes, paired with product reformulation, boosted consumer trust.
Kellogg’s: In the UK, Kellogg’s used eye-tracking studies to refine traffic light labels, ensuring key nutritional data stood out. The result: improved consumer confidence and stronger alignment with health-conscious buyers.
PepsiCo: In Australia, PepsiCo conducted message testing before launching a low-sodium snack line. The term “reduced salt” was replaced with “balanced sodium,” which resonated better with consumers and drove sales growth.
The FDA’s proposed labelling rules are more than a compliance hurdle – they’re an opportunity for brands to redefine their positioning and build consumer loyalty. By embracing strategic adaptations, companies can turn these regulations into a competitive edge, aligning their offerings with the priorities of health-conscious shoppers.
Reformulating products is a powerful way to leverage FOP labelling, as healthier profiles naturally resonate with consumers. Labels categorising saturated fat, sodium, and added sugars as “low,” “medium,” or “high” will make products with better nutrition profiles stand out.
Using FOP labels as part of a holistic packaging strategy allows brands to meet health-conscious expectations while maintaining a strong market presence.
FOP labelling isn’t just about compliance – it’s a chance to tell a story. By linking labels to a brand’s mission, values, and health commitments, companies can create deeper consumer connections.
When done right, FOP labels can become a cornerstone of brand storytelling, merging compliance with authenticity.
The FDA’s new labelling rules place food brands at a pivotal moment. Compliance is non-negotiable, but for products with less favourable nutritional profiles, maintaining creative freedom and the market appeal becomes a steep challenge. Striking the right balance between regulatory adherence and brand identity will be crucial.
FOP labelling requires brands to surrender valuable packaging space to standardised information on saturated fat, sodium, and added sugars. For indulgence-focused products, this shift is especially challenging, as packaging that once evoked luxury or cravings must now make room for health metrics that could dissuade buyers. This tension demands innovative solutions to integrate compliance without diluting brand identity.
For brands with high levels of added sugars, sodium, or saturated fats, FOP labelling poses significant risks.
Proactive brands can navigate FOP challenges by leveraging data-driven strategies that align compliance with consumer expectations.
By tackling these challenges with research-backed strategies, brands can adapt to the FOP landscape without losing their identity. Quick, thoughtful action will enable companies to comply with regulations while positioning themselves as trusted, innovative leaders in a marketplace increasingly defined by health-conscious consumers.
The FDA’s FOP labelling rules offer more than a compliance challenge – they’re a chance for brands to deepen connections with health-conscious consumers. Food brands can transform FOP labels into a foundation for lasting trust and loyalty by prioritising transparency and authenticity.
FOP labels directly address consumer demands for transparency, providing health-conscious shoppers with the tools to make informed decisions. These labels can strengthen trust and highlight a commitment to well-being when integrated into broader brand narratives.
Transparency must go hand-in-hand with authenticity to avoid alienating consumers. Overstating or misrepresenting a product’s health benefits – a tactic known as “healthwashing” – can erode trust and harm a brand’s reputation.
Transparency has helped many brands stand out in competitive markets, proving that authenticity builds trust and loyalty:
As the US moves toward implementing new nutrition labelling, lessons from global markets like Australia, the UK, and Chile provide a roadmap for navigating the shift. These countries’ experiences highlight both the challenges and opportunities that transparency brings to the food industry.
Australia’s Health Star Rating system demonstrates how simple, visual indicators can influence consumer preferences toward healthier options. However, its voluntary nature has led to inconsistent participation, particularly among less healthy brands. For US companies, this underscores the need for universal compliance to maintain trust and ensure meaningful impact.
The UK’s traffic light labelling system, featuring colour-coded indicators, has significantly shaped purchasing decisions, especially among families and younger shoppers. It has also spurred reformulation efforts, with brands lowering sugar and salt to avoid red labels. Transparency, as this system shows, not only informs consumers but also drives industry-wide changes. For US brands, adopting proactive reformulation strategies early could mitigate the reputational risks associated with unfavourable FOP labels.
Chile’s bold implementation of mandatory warning labels demonstrates how regulation can act as a catalyst for product innovation. The stark black-and-white warnings have led to a reduction in sales of high-sugar and high-salt products, but they’ve also opened the door for brands to introduce reformulated or alternative product lines. In a market where simplicity often equals clarity, US companies might consider how to balance compliance with consumer education to avoid potential misinterpretation of labels.
Market research is essential for navigating the complexities of FOP labelling. Tools like eye-tracking studies, A/B testing, and sentiment analysis help brands create labels that meet regulatory requirements while resonating with consumers. Package testing ensures that new labels align with broader brand messaging, maintaining trust during the transition.
For US brands, FOP labelling is an opportunity, not a constraint. By leveraging global best practices and investing in market research, companies can meet consumer demands for transparency while maintaining a competitive edge. The reward is clear: an empowered consumer base and a food industry rooted in trust and accountability.