Food Legislation Will Change the Way We Eat

 

California and West Virginia are at the forefront of food regulation, examining the ingredients that make up our everyday meals. Both states are considering new legislation to regulate food additives, dyes, and preservatives and according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, change is coming.  In West Virginia, this effort is closely tied to Health and Human Services Secretary Robert F. Kennedy Jr.’s Make America Healthy Again (MAHA) agenda. This movement has garnered bipartisan support, emphasizing the need for a healthier food system and signaling a seismic shift in consumer expectations.

The global clean-label food market was valued at $38.8 billion in 2021 and is projected to reach $64.1 billion by 2026. With over 63% of U.S. consumers actively avoiding artificial ingredients, brands that fail to adapt to this regulatory wave risk losing market share. As these legislative efforts move forward, the food industry is poised for radical transformation. Here are five ways food innovation will change as a result and five bold outcomes for consumers, restaurants, and food manufacturers.

Five Ways Food Innovation Will Change

1.       Reformulation of Processed Foods – The End of Synthetic Additives?
Food manufacturers will be forced to reengineer their best-selling products, eliminating artificial dyes, preservatives, and emulsifiers like BHT and Red Dye No. 3. Kraft Heinz, for example, already reformulated its macaroni and cheese to remove artificial dyes after consumer backlash. Expect more companies to follow suit or risk consumer abandonment.

2.       Rise of Natural Alternatives – Scaling Organic and Clean-Label Solutions
With synthetic options off the table, companies will scramble to integrate natural solutions like beet juice for coloring and acerola cherry extract for preservation. This could create supply shortages and drive up costs, further pressuring companies to invest in vertical integration to secure clean-label ingredients.

3.       Increased Transparency in Labeling – From Compliance to Competitive Advantage
Consumers are already scrutinizing ingredient lists more than ever, with 81% of grocery shoppers reading labels before purchase. Stricter regulations will force food brands to provide clearer, more detailed labeling, but brands that proactively embrace transparency could turn it into a competitive edge.

4.       New Food Safety Standards – The FDA Under Pressure to Act
The FDA has historically been slow to regulate food additives compared to the European Union, which has banned over 1,300 substances that remain legal in the U.S. Expect increased consumer pressure on federal agencies to accelerate bans nationwide, further reshaping product formulations.

5.       Greater Investment in Food Science and Technology – The Rise of AI in Product Development
Companies will pour billions into R&D, leveraging AI-driven food science to develop better-tasting, clean-label products with extended shelf life. In 2023 alone, food-tech startups attracted over $3.1 billion in funding, signaling that innovation will be a cornerstone of survival in the new regulatory era.

Five Possible Outcomes

1.       Healthier Food Options – The Next Generation of Fast Food
Major fast-food brands will be forced to reformulate their offerings, leading to healthier drive-thru menus. McDonald's, for example, could face pressure to eliminate artificial preservatives from its buns and sauces, shifting toward fresher, preservative-free ingredients.

2.       Food Inflation and Higher Prices – The Hidden Cost of Clean Eating
Reformulating processed foods with natural alternatives will increase production costs, likely driving grocery prices even higher. A study from Rabobank predicts that removing synthetic ingredients could increase product costs by 10–30%, hitting price-sensitive consumers the hardest.

3.       Fast Food and Restaurant Chains Overhauling Menus – Winners and Losers Emerge
Some restaurant brands will thrive by embracing clean-label trends, while others will struggle to adapt. Chains like Panera Bread and Sweetgreen, which already emphasize natural ingredients, could gain market share, while legacy brands dependent on artificial preservatives may see declining foot traffic.

4.       Consumer Brand Loyalty Shifts – Trust Becomes the Ultimate Selling Point
Brands that fail to eliminate controversial ingredients will see an erosion of consumer trust. According to a 2024 NielsenIQ report, 72% of shoppers are willing to switch brands based on ingredient transparency. Expect major retailers like Whole Foods and Trader Joe’s to capitalize on this shift.

5.       National Ripple Effect – A Domino Effect for Food Legislation
If California and West Virginia successfully implement these regulations, other states will follow suit, leading to a de facto national standard. Companies that wait too long to adapt may find themselves scrambling to comply with a rapidly shifting regulatory landscape.

As recently discussed in Working Lunch, Joe Kefauver and Franklin Coley of Align Public Strategies, they highlighted how the MAHA movement is setting the stage for a food industry revolution. If you are looking a customer ahead you need to know battle over what’s on your plate is just beginning, and the winners will be those who act now to meet the demand for a healthier, cleaner food system. 

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