Beyond the Label: Insights for Retailers To Close the Nutrition Gap

Leaders across the consumer goods industry are tackling a critical challenge of the nutrition gap. According to the UN’s World Food Programme (WFP) 2.8 billion people worldwide can not afford a healthy diet and the barriers to access are often highly localised. For retailers, nutritional labelling of products is just the start to tackle this issue. 

Research conducted at INSEAD suggests that behavioural insights—understanding what people buy and why they buy it—are key to bridging the nutrition gap. The following are insights from the Lab’s research for retail leaders to better understand consumer behaviour and help them choose healthier options. 

Using targeted “nudges” in certain food categories 

It is often as effective to add labels to only the top 33% of healthier or more sustainable products in a given category than to label all products. This is because the labels appeal to consumers who care about nutrition or the environment and who won’t purchase the least healthy or least sustainable products anyway. Conversely, people who buy the least healthy or sustainable products have revealed that these aren’t important for them and won’t stop buying their preferred products even if they have a label with a poor score.

Providing reusable containers can nudge consumers towards healthier choices and reduce food waste  

Consumers often avoid premium, fresh, or healthier options because they fear waste—the “use-it-or-lose-it” trap. Ongoing research conducted at INSEAD shows that providing “utility preservation” options, such as leftover containers or allowing consumers to choose their portion size, removes the psychological barrier to buying fresh. 

In a field study in a cafeteria in France with 999 eaters, this led to lower waste and significantly higher customer satisfaction – 89% of customers wanted the cafeteria to provide preservation boxes permanently. Crucially for growth, it also led to more purchases.

By moving beyond labelling and applying these behavioural insights, retailers can start to bridge the gap between business growth and public health. When we understand the diverse priorities of consumers, we can make the healthier choice the easy choice for everyone.

Understanding consumer choices and shopping trends is part of the Healthier Lives Dietary Shifts workstream of The Consumer Goods Forum. The aim is to make healthier choices visible and affordable in order to drive revenue growth and improve diets on a large scale. To join the workstream, contact the team.