A recent report by the European Court of Auditors (ECA) highlighted significant shortcomings in the European Union's food labeling system. The findings emphasize the urgent need for a clearer and more consistent approach to safeguard consumers. For food businesses operating in the EU, these challenges also present an opportunity to differentiate themselves through transparency and innovation.

Fragmented regulation and limited oversight

The EU's food labeling system is currently governed by a patchwork of regulations requiring key information, such as expiration dates, allergens, nutritional details, and storage instructions. However, the ECA has identified gaps in these regulations that lead to inconsistencies and potential abuses. As a result, some producers exploit the lack of harmonized standards to include unverifiable or misleading information.

This challenge is further compounded by inadequate monitoring and enforcement mechanisms. With minimal penalties and insufficient oversight, consumers are left vulnerable to unclear or inaccurate labels. Keit Pentus-Rosimannus, a member of the ECA and author of the report, characterized the situation as a "jungle" of labels, logos, and slogans that often confuse rather than inform.

Divergent labeling practices among member states

The report highlights how different member states adopt distinct labeling systems, further contributing to market fragmentation. For instance:

  • Traffic light system: Employed in countries such as France, Germany, and the Netherlands to represent food's nutritional quality. This system includes the controversial Nutri-Score, which uses color coding to provide information about nutritional attributes.
  • Battery system: Known as NutrInform Battery and adopted in Italy, it offers detailed information in grams and percentages about calories, fats, sugars, and salt.
  • Symbol-based systems: Sweden and Denmark apply the "Keyhole label" to identify healthy foods, while Finland uses a heart symbol to designate healthier options.
Nutri-Score Label Nutrinform Battery Italy Keyhole Label

[In the image: examples of Nutri-Score, NutrInform Battery, and Keyhole label]

These systems, although designed with good intentions and valid goals, lack consistency. Furthermore, some, such as Nutri-Score, remain the target of significant criticism for offering overly simplistic information that, in some cases, may be counterproductive or misleading when evaluating how healthy a specific food is within the context of a balanced diet.

In addition, products moving across borders within the European market can confuse consumers, who are faced with unfamiliar symbols or conflicting information.

Deficiencies in food labeling

The ECA report highlights several critical shortcomings in the current food labeling systems:

  • Ultra-processed foods: Despite scientific evidence linking the excessive consumption of ultra-processed foods to health risks, no labeling exists to indicate the level of processing.
  • Precautionary allergen labeling: Inconsistent allergen regulations continue to pose risks for consumers with allergies.
  • Vegetarian and vegan labels: The absence of harmonized standards for plant-based diets leads to challenges for both producers and consumers.
  • Readability standards: EU regulations on label readability are inadequate, making it difficult for consumers to access vital information.

After gathering data and analyzing the various labeling systems, the ECA has called on the European Commission to establish harmonized rules to tackle these issues and enhance the quality of information available to consumers.

Opportunities for food companies

For food companies, the challenges associated with labeling systems also present opportunities to adopt proactive measures and secure a competitive advantage. The following sections outline the key aspects that stakeholders in the food supply chain - producers, distributors, importers, wholesalers, and retailers - can focus on to strengthen their position in response to current market trends.

Investing in clean labeling

Companies that voluntarily adopt clear, verifiable, and consumer-focused labels can build trust and loyalty. Highlighting aspects such as the level of processing, allergen information, and sustainable practices can help products stand out in a crowded market.

According to a report by Innova Market Insights, 60% of global consumers state that clean labels significantly influence their purchasing decisions. Additionally, over 50% of consumers are willing to pay a higher price for products with clean labels and natural ingredients.

For more insights on market trends and consumer behavior, see also: "Healthy and Functional Foods: How Food Companies Can Earn Consumers' Trust ".

Positioning as a health-conscious brand

As consumers become increasingly aware of the connection between diet and health, companies have the opportunity to differentiate themselves by adopting a wellness-focused approach. Clearly showcasing processing methods, ingredient sourcing, and balanced nutritional profiles can help build a reputation for transparency and trust. Demonstrating a commitment to health through intuitive labeling and informative content (easily accessible via QR codes, for instance) can capture the attention of health-conscious consumers and cultivate long-term loyalty.

Leveraging technology to inform consumers

QR codes and digital labels can surpass mandatory requirements by offering detailed insights into production processes and nutritional content, while supplementing basic data with information on health care and tips for maintaining a balanced diet. When implemented consistently and authentically, this strategy not only enhances transparency but also serves as a powerful tool for commercial success and brand image enhancement.

By emphasizing values such as sustainability, the quality of raw materials, and a commitment to consumer well-being, companies can establish themselves as trusted providers and reinforce their brand identity.

Anticipating trends toward health and sustainability

As consumer attention shifts toward ultra-processed foods and plant-based diets, companies can focus on these trends to align with evolving demands. Labels emphasizing minimal processing, natural ingredients, or adherence to vegan standards can help brands earn a strong position in high-growth market segments for the coming years.

Environmental sustainability and social responsibility are increasingly linked to health-conscious choices, becoming key factors in consumer decision-making. Modern consumers look for products that are not only healthy but also eco-friendly and considerate of the communities involved in their production. This convergence is prompting companies to reevaluate their strategies, incorporating transparency, ethics, and sustainability to address the heightened expectations of a discerning and informed audience.

For further insights into clean and sustainable labels, see also: "Sustainable Labels: Opportunities for the Food and Beverage Sector in 2025".

Sviluppare sistemi proprietari per migliorare la trasparenza

While there are no guarantees about how future standards may evolve, food companies can differentiate themselves by creating proprietary labeling systems that comply with national and international regulations while offering clearer, more detailed, and intuitive information. For instance, some companies have adopted labels featuring simplified graphic designs, easily legible fonts, and color schemes tailored to improve comprehension.

Ensuring that information is readable and easily accessible demonstrates a commitment to transparency and openness. Additionally, these innovations can set benchmarks for the industry, enhancing corporate reputation and establishing a competitive edge built on reliability and responsiveness to consumer needs.

Criticism from industry and stakeholders on current labeling systems

Nutri-Score and similar frameworks have been criticized for oversimplifying nutritional information, failing to reflect the complexity of foods or their consumption within a balanced diet.

Traditional and natural products, such as cheese and olive oil, are often penalized due to their high fat or salt content, ignoring their integral role in healthy eating patterns like the Mediterranean diet and their contribution to balanced nutrition when consumed in moderation.

Additionally, such systems may favor ultra-processed foods that are "optimized" to achieve high scores.

The lack of standardization across European countries adds to consumer confusion, especially when comparing different schemes such as the battery system in Italy or the Keyhole in Sweden. Nutri-Score is also inadequate for individuals with specific dietary needs and can convey ambiguous messages, implying that high-scoring foods are universally healthy and low-scoring ones should be avoided, neglecting the broader context of a balanced diet.

Finally, industries like dairy, olive oil, and cured meat production have raised concerns about how the system unfairly penalizes their high-quality products, irrespective of their nutritional and cultural significance.

These limitations underscore the need for improved labeling systems that are clearer, more comprehensive, and better aligned with the true quality of foods, reducing consumer confusion and preventing the spread of misleading information.

Conclusion

The current fragmentation of the food labeling landscape has captured the attention of institutions, trade associations, and food companies. Beyond existing regulations and potential future developments, consumer behavior and emerging trends provide clear guidance for producers and distributors to meet these new demands with transparent labels that reflect a commitment to health and overall well-being.

The ECA report has highlighted several challenges well-known to industry stakeholders, as they have been the focus of debates and criticism about the information on food and beverage labels for many years. Upcoming initiatives by the European Commission to harmonize labeling practices hold the potential to promote a more consumer-centric market, providing companies with the chance to actively contribute to this transformation.

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