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1、 2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.THE IMPORTANCE OF BEING LABELLEDMore shoppers than ever have food allergies and intolerances.Upgrading product labelling can supercharge sales and build shopper loyalty.Global Thought LeadershipGlobal Editio
2、n 2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.The Importance of being labelled Our Expert Voice:Tiffani Gray,RD,LDNContents23THE IMPORTANCE OF BEING LABELLED:INTRODUCTION4SHOPPER CONFUSION AND WHATS GOING WRONG WITH LABELLING9HOW TO BUILD BRAND-LOYALTY
3、 WITH CORRECT LABELLING 16BRAND CHECKLIST17WHAT CAN RETAILERS DO?22YOUR NEXT STEPSTiffani is a Registered Dietitian Nutritionist and Data Transformation Analyst based in Chicago,IL.She has 5 years of experience in the CPG industry and currently works on a team of subject matter experts at NIQ Brandb
4、ank within the Label Insight team.Her primary focus is to support global retailers build data-driven,customer-centric solutions by applying high order attribution to drive client results.2023 Nielsen Consumer LLC.All rights reserved.The importance of being labelled IntroductionCatering for shoppers
5、with allergies,intolerances,and specific dietary needs,such as veganism or keto,is a significant and profitable sector within the FMCG industry and its growing fast.The Governments Food Standards Agency estimates that around two million people in the UK are living with a diagnosed food allergy.In th
6、e US,around 32 million Americans have food allergies,according to Food Allergy Awareness Week.Food allergies and intolerances are surging around the world and experts arent sure why everything,pinpointing everything from vitamin D deficiency to an over-cleanly childhood.That food allergies have rise
7、n is unquestionably the case,to an absolutely crazy extent,Graham Rook,emeritus professor of medical microbiology at University College London,told the BBC.Meanwhile,billions more people around the world approach their grocery shop with specific dietary needs motivated by lifestyle,culture or religi
8、on.These can include everything from veganism and keto to halal,low-salt and clean eating.Whatever the dietary need state it can make shoppers feel angry and harassed in the grocery aisles.Its bad in bricks and mortar stores but it can be far worse online as shopper searches fail to return suitable
9、products.This report considers why this growing segment of shoppers is struggling to discover suitable products for their allergies,intolerances or dietary needs.It looks at whats going wrong with the existing path to purchase and the steps brands and retailers can take to meet their needs,boost sal
10、es and win loyalty.Top of the list is better labelling with huge potential for brands and retailers to up their game.Far too many products are failing to claim an on-label attribute,such as gluten-free,vegan or low-salt.This makes them harder to find for shoppers with need states who are left to bro
11、wse the label and make their own decisions.Its time for brands and retailers to better serve these careful shoppers with allergies,intolerances and dietary needs.Heres how to optimise your labelling and product information which,in turn,will enhance the shopping experience for this segment building
12、loyalty and supercharging sales.3Many shoppers are confused by labelling,but where are companies going wrong,and what do retailers and brands need to change to meet shopper needs?Americans have food allergies,according to Food Allergy Awareness Week.32 million2 millionPeople in the UK have allergies
13、 according to the Governments Food Standards Agency 2023 Nielsen Consumer LLC.All rights reserved.Where does the confusion come from?Shopper confusion about labelling and its impact 4Whatever the diet or health need,shoppers want to be able to identify and buy products that meet their requirements.T
14、hey want to shop quickly and easily for their dietary requirements-without having to spend hours researching and checking labels themselves.Many shoppers are confused about the ingredients in their food items and most would prefer reassurance and clear information on a product label.This confusion a
15、nd under labelling can impact sales The Ingredients Confusion Study by Label Insight found that this confusion prompts shoppers to consider switching brands and paying more for a brand whose ingredients they understand.The study asked more than a thousand people about confusion with food product ing
16、redients and labelling.It also looked at the behavioural impact of this confusion on purchasing as well as how technology might reduce labelling confusion in future.of shoppers are confused at least some of the time about ingredients listed on food package labelsare concerned about eating food produ
17、cts with ingredients they dont understandsay they trust the brand less when they are confused about ingredientsdo not buy a product when they are confused by ingredientswould switch to another food product that contains ingredients they understandwould pay more for ingredients they understand83%45%3
18、5%60%63%54%2023 Nielsen Consumer LLC.All rights reserved.5Why are labels important?Labels matter especially when it comes to dietary need states.The International Food Information Council(IFIC)surveyed shoppers in the US and found that almost two thirds of reported that ingredients have at least a m
19、oderate influence on their food and beverage purchases.Thirty per cent reported that ingredients have a big influence and 63%of people said they were paying more attention to the ingredients list.Around two thirds of shoppers tried to choose foods without artificial or synthetic ingredients,often in
20、formally called cleanespecially in the US.Almost half of the thousand shoppers in the survey considered themselves to be clean eaters.The terms organic fresh and natural were also highly sought after by many shoppers although these terms have no basis in law.Why labels are imporant 2023 Nielsen Cons
21、umer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.Whats going wrong?Whats going wrong with labelling?When it comes to correct labelling for dietary need states,one of the biggest challenges is what under-labelling rather than incorrect labelling.Simply,failing to call out im
22、portant product attributes such as gluten-free or low-salt.This can dramatically impact sales in a niche segment and leave competitors with full labels that call out all the attributes free to dominate in the grocery aisles.Clearly stating what might seem an obvious attribute on the label reassures
23、shoppers and means it will appear in online searches.Shoppers prioritise brands that are labelled with their need state even if it means they are spending more unnecessarily.Many shoppers may not trust their own judgment especially when it comes to choosing products for a life-threatening allergy.Fu
24、ll labelling brings trust and reassurance to a shopper with a need state.Take a basic tin of tomatoes that only contains tomatoes and tomato juice.The product is suitable for vegans and vegetarians and may suit many other diets,such as gluten,dairy and nut-free.Unless this is called out on the packa
25、ging and the data and content is enhanced and updated-it will not appear on any shopper search or retail aisles for these need states.When a brand fails to call out a specific allergen on packaging,even though that product does not contain the allergen,a lot of people are afraid to read the label an
26、d trust that they know what theyre looking at.Thats why full and proper labelling is so important,says Tiffani Gray,a registered dietitian and Data Transformation Analyst at Label Insight.Any certification the product qualifies for should be prominently on the label.But,even calling out relevant att
27、ributes,such as allergen free,gluten free or peanut free can help win shoppers trust,boost sales and build brand loyalty.It might seem like reading a label is second nature,but it really is not,says Tiffani.So including gluten-free or peanut-free on the label helps the shopper.Why are shoppers confu
28、sed and where are brands and retailers going wrong?6+35%of shoppers do not buy a product when they are confused by ingredients 2023 Nielsen Consumer LLC.All rights reserved.7Case Study01Buying oats can be confusing when you have a gluten allergy.Oats in themselves do not contain gluten so they are s
29、afe for most people with an allergy such as coeliac disease.But supermarket aisles contain both standards oats and packs labelled as being gluten free the latter are far more expensive.Quaker Gluten Free oats,for example are 70.6p per 100g at ASDA online compared to Quaker Wholegrain Rolled Porridge
30、 Oats 27.5p per 100g.So why must shoppers pay so much more to buy oats labelled as gluten free?Cant they just buy ordinary,and far cheaper,packs of oats?Definitely not,according to the charity coeliac UK and the reason why reveals the complexity of negotiating the grocery aisles when you have an all
31、ergy.It also explains why many shoppers with need states opt to only buy products that are labelled with allergy info.Many standard oats are produced in the same place as wheat,barley and rye,which makes them unsafe because they can be contaminated,says the charity.Oats and the power of labels-glute
32、n-free vs standard oats 2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.On package claims truly are the best and most reassuring way to give a shopper confidence that the product is for them,especially if they have an allergy.How can correct labelling impr
33、ove trust?Labels and trust 8Most people have so little time to read labels and so many competing demands that they rely on labels to tell them if something truly fits their dietary needs.It brings reassurance,builds trust and boosts sales.Many people who follow a strict dietary need will simply not
34、eat any packaged product or feed it to their children unless gluten-free is clearly stated on package,says Tiffani.Even if they are well-informed about ingredients and feel comfortable reading labels,they might still want to check an item isnt manufactured in a factory where gluten is also processed
35、 alongside and it could be contaminated,says Tiffani.Many shoppers feel that there is a better chance of the product definitely not containing gluten if it is actually called out on the packet.So,calling out on the label translates into extra sales within the allergen community.On package claims tru
36、ly are the best and most reassuring way to give a shopper confidence that the product is for them,especially if they have an allergy.Tiffani Gray,RD“Clear labels help shoppers save valuable time.Give shoppers confidence to buy your products by simply calling out the attributes that matter most.2023
37、Nielsen Consumer LLC.All rights reserved.Labelling builds loyaltyBuilding brand loyalty with labelling Inadequate labelling can have a huge effect on the relationship a shopper has with a brand.But get it right and trust soars and brand loyalty can lock in with a happy customer finding the products
38、they want and a brand with guaranteed sales.When it comes to dietary requirements such as a peanut allergy or gluten-free,there are just so many options out there in todays market.A shopper might try a new product when it launches just because its new and has good marketing,says Tiffani.But in the l
39、ong term,when shoppers are busy with family and work and they want to do a quick online grocery shop or they are just running to the store to grab something for dinner they are always going to go back to that product that they had a good experience with,Tiffani says this is especially true when it c
40、omes to busy mums feeding children with allergies.This segment of the market can be particularly strict about finding a brand they trust and sticking to it.Labels help do the work for shoppers so they dont have to spend hours checking labels and can eat products feeling safe and secure.This is a pow
41、erful tool for encouraging people to buy and supercharging sales.In my opinion if one product of a brand has an allergen called out on the label,I people in the allergen community who follow a specific diet or have an allergy are more likely to shop that brand,even if it has other products that dont
42、 call out allergens,says Tiffani.She believes this enhances trust.It shows a brand is aware of an allergen.That they understand how to ensure their manufacturing processes really ensure a product is free of the allergen.As well as specific product content,brands must work hard to ensure labels showc
43、ase any relevant dietary qualifiers.9“Correct allergen labelling shows a brand is aware of an allergen.That they understand how to ensure their manufacturing processes really ensure a product is free of the allergen.”-TIFFANI GRAY,RD 2023 Nielsen Consumer LLC.All rights reserved.How do shoppers shop
44、 for their needs?What changes are shoppers demanding?With 54%of people willing to pay more for clearly labelled products,where are the opportunities for brands and retailers?10Brands vs ingredient checkingShoppers may be willing to pay more for products that are clearly labelled with their dietary n
45、eed.Quick and easy recognition of suitable ingredients is one of the biggest drivers of product choice in the allergies and dietary needs FMCG sector.Label Insight research shows that 54%of people would pay more for ingredients they understand.These findings underline the importance of complete and
46、clear labelling presented in an accessible way to shoppers.However,this implies that some people may be spending more than they need simply because they are overlooking a cheaper option with an incomplete label.It also suggests there is a significant opportunity for brands to optimise their labellin
47、g and outsmart competitors who fail to do so.Optimise discoverability for dietary needs Make sure content,data and product information are fully complete.This will help you compete and come top of the search results in this competitive landscape where shoppers have highly specific needs.When a retai
48、lers data is driven by on-package claims,even if a product doesnt contain an allergen it wont populate in a consumers search if its not listed on package for that product,says Tiffani.Those brands are then missing out on that target audience and missing out on that sale.Thousands of products could b
49、e missing out on sales.In the Label Insight library of 500,000 US products,there are 270,020 products that qualify to be gluten-free,but only 175,000 call this out on pack.This is a huge missed opportunity for brands that are not calling this out on pack,says Tiffani.Optimise the digital shelf by ha
50、rnessing product metadata.This can help you understand what attributes every product qualifies for,even if the brand is not explicitly making a claim about that attribute on-package.Brands can also map attributes trends using consumer search data from e-commerce retailers such as Amazon and Walmart.
51、This can reveal what attributes are most searched and map those search trends to products.This can help SEO and improve organic search ranking.54%of people would pay more for ingredients they understand 2023 Nielsen Consumer LLC.All rights reserved.11Case Study02Mars recently introduced vegan versio
52、ns of its Galaxy bar to the UK.The chocolate bars,which are certified by the Vegan society,are made from hazelnut paste and rice syrup rather than dairy.Each 100g bar was launched for sale at around 3 double the price of the regular version.According to Vegan Food and Living people may have criticis
53、ed the price but they were still popular with shoppers.However,The Grocer reports that in July 2022 the bars disappeared from Tesco,Sainsburys and Morrisons following discussion about the term dairy free.a spokeswoman for Morrisons said the range had been delisted as it did“not meet the criteria of
54、either our health&wellbeing category or our free-from one,writes The Grocer.It is understood the supermarket was at loggerheads with Mars over its proposal to shift the chocolates from its free-from fixture into core confectionery.Galaxy Vegan appears to still be unavailable at Morrisons but is now
55、available at Sainsburys.It is also in the online store at Tesco where the product description lists it as dairy free.A Mars spokeswoman told The Grocer that Galaxy Vegan has been enormously successful since launch and has surpassed the companys high pre-launch expectations.Galaxy Vegan-Cost point,de
56、scription,allergies and labels 2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.12Case Study03Nebulous terms such as clean eating,natural or healthy have no basis in labelling law but can still entice shoppers and are increasingly found on product descripti
57、ons and labels.So what should brands and retailers do about calling out these attributes?However,what these terms mean in dietetic and legal terms is far from clear.Label Insight data found that only a third of people in the US understand what the claim clean means.The International Food Information
58、 Council found that 22%of shoppers define clean as not artificial or synthetic followed by organic fresh something they know is nutritious and natural.These attributes might be vague and have no real basis in law,but they can still resonate with shoppers and influence purchasing decisions.Theres no
59、real definition of what attributes like“clean”mean,says Tiffani.So,they are just trigger words for shoppers that dont mean much but can sway shoppers.A marketing team may be keen to throw those words on a label in the hope it will sway shoppers.However,brands and retailers need to take care and take
60、 professional advice before they start splashing words like clean,healthy and natural on their packaging.Clean,natural and healthy 2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.May ContainMay contain the challenge of vegan food and allergy labelling 13By
61、 its very definition,a vegan diet is free from animal products such as milk and egg.However,trace levels of cross contamination can occur when vegan food is produced in a factory that also processes non-vegan food.The Food Standards Agency sets out what allergen information food businesses must prov
62、ide customers.It warns that cross-contamination is the reason why packaging for some vegan products sometimes include precautionary allergen labelling such as“may contain”.This means the products could include traces of allergens such as milk,eggs,fish,molluscs and crustaceans,which could pose a ris
63、k if you have a food allergy to these.It very important to read the label to see if the product is safe for you,even if it is a vegan product.The Food and Drink Federation(FDF)has published guidance on Allergen-Free and Vegan Claims for the food industry and consumers.This guidance has clear informa
64、tion on the difference between allergen-free claims such as milk-free and vegan claims.2023 Nielsen Consumer LLC.All rights reserved.The global perspectiveGlobal perspective on allergen labelling 14There is no global framework for food allergen labelling.However the Journal of Food Safety&Quality re
65、ports that the Codex Committee on Food Labelling is working with the World Health Organisation recently established a list of priority allergenic foods.It is planned that this will create the basis for revised worldwide guidance on allergenic food labelling.In the US the Food Allergen Labelling and
66、Consumer Protection Act of 2004 identifies eight major allergens:milk,eggs,fish,Crustacean,shellfish,tree nuts,peanuts,wheat,and soybeans.Food warnings are either in brackets within the ingredients list or the word contains is used near or immediately after the ingredients list.This has recently bee
67、n updated to include Sesame(find out more about that here).In the UK,the Food Standards Agency(FSA)requires food manufacturers to identify allergens by saying so clearly on the pack and listing them in the ingredients.The FSA identifies 14 major allergens.Image Sources:https:/cpdonline.co.uk/knowled
68、ge-base/food-hygiene/14-food-allergens/2023 Nielsen Consumer LLC.All rights reserved.What to do next.Global perspective on allergen labelling 15Traffic-light labelling By law,most pre-packed products must provide a nutrition label on the back of pack.Front-of-pack labelling in the UK is voluntary bu
69、t most FMCG retailers and brands provide this and use the Governments recommended colour-coded traffic-light formular or red,amber or green.This is useful for shoppers who want to compare products,especially if they have low-fat,low-salt or low-calorie needs.It offers information at a glance.However
70、,it is still a challenge for shoppers to work out what this might mean in for an adults daily recommended intake and what a portion size really means.Its also no help when it comes to allergies and intolerances.NutiscoreIn the Benelux market,a similar system called Nutri-Score is being used.It assig
71、ns products a rating letter from A(best)to E(worst),with associated colours from green to red.It was created to help consumers quickly make an informed choice,but it is also a challenge for shoppers to understand this information.Guiding starsIn the US a new-look system of icons was unveiled in 2021
72、 by food giant Ahold Delhaize USA subsidiary Guiding Stars as a new product nutrition labelling system.The system launched in 2006,but the refresh is design to make it easier for shoppers.Supermarket News reports that the star icons are to help shoppers find better-for-you products.The logos show gr
73、ade food with words good,better or best and are described as nutritional navigation.This is reinforced by star ratings inside an apple.The icons are on product packaging,store shelf tats and online platforms.Julie Greene,director of Guiding Stars,said in a statement:We want to make an easy,immediate
74、 impact a persons choice for a drink,meal or snack that makes someone feel good about their food choice and encourages ongoing nutritious choices.2023 Nielsen Consumer LLC.All rights reserved.Brand Checklist Brand Checklist 16Identify products that they can claim are free from the most common allerg
75、ens and intolerances,such as wheat,peanut and dairy.Identify products qualifying for legally regularly nutrient content claims such as low-fat,high-protein,low sodium and sugar-free.Identify products qualifying for popular consumer diets such as ketogenic,paleo,kosher or vegan.Identify products cont
76、aining ingredients of interest to this sector,including superfoods or products with ingredients of concern such as high fructose or caffeine.Identify products that could qualify for popular clean-label/healthy-eating trends,including non-GMO,free of artificial ingredients,organic,free of preservativ
77、es.Fully capture identifying information,ingredients,fact panel data,warnings and category hierarchy.When products arent labelled as fully as they could be,shoppers likely wont buy them.Heres a checklist for upgrading your offering 2023 Nielsen Consumer LLC.All rights reserved.17Retailer Perspective
78、 Weve looked in detail at what brands can do to support dietary need states with clear labelling and enhanced product content.However,GMCG retailers also have an important role to play.2023 Nielsen Consumer LLC.All rights reserved.How can retailers cater better for shoppers with allergies and dietar
79、y needs?2023 Nielsen Consumer LLC.All rights reserved.Retailer ActionHow can retailers cater better for shoppers with allergies and dietary needs?18Maximise opportunities to buyShoppers want an enjoyable and easy path to purchase and that desire doesnt change even if they have a dietary need.Rather
80、than leaving shoppers to proactively discover products for themselves,online retailers must work hard to present them with suitable items at every turn of their shopping journey.Real world shops allow people to discover new products by serendipity next to a product you usually buy in the free-from a
81、isles or via a visual display.However,online retailers need to work hard to replicate this experience in the digital landscape.Research by Label Insight(Empty Aisles Report)found that when shoppers search for products with specific attributes,such as low-salt,they often return incomplete searches.Re
82、tailers can make sure aisles are as full as possible by Optimising search,taxonomy and product detail page content.Provide attribute-bases search filter functionality.Ensure a search for a diet need state returns quality results.Give the correct information at the right time offer them vegan cheese
83、when they add vegan crackers to their shopping cart,for example.Presenting shoppers with more products that meets their need will increase conversion and basket spend.Curate digital shelf collections that meet particular needs.Improve online and offline shelf organisation with shelf tags.92%23%53%Of
84、 the top 25 product attributes consumers searched for online,only 14 showed up within the top 25 search filters on retailer websites.Of the 25 attributes with the most search volume,a filter only exists 23%of the time.Current retailer systems fail to return 92%of the products that qualify.On Average
85、,across the top 25 most prevalent attributes,retailers fail to return 53%of qualifying products 2023 Nielsen Consumer LLC.All rights reserved.What can retailers do?How can retailers cater better for shoppers with allergies and dietary needs?19PersonalisationRetailers can win with this segment of sho
86、ppers by making everything as personalised and easy to find as possible in contrast to the challenges they may face finding products they want elsewhere.The more hyper-personalised the buying experience,the better.Advanced filtersImproving the configuration of what products shoppers see when and how
87、 they filter the grocery aisles can boost sales.Allow shoppers to search the digital aisles with a need-state filter or more than one if they have multiple needs.Allow shoppers to browse as a shellfish-allergic or a low-salt shopper.Asda,for example,uses custom nutritional filters which can be creat
88、ed and saved by the shopper.Dietary need states icons can help shoppers quickly identify products that meet their needs.Icons could also help shoppers track down new items they might not have tried before or compare brands.Asda also has a Dietary&Lifestyle tab that allows shoppers to filter for arou
89、nd 23 specific food requirements,including halal,kosher,high fibre,no shellfish,no celery,no nuts and no mustard.Asda online filtersDynamic prioritisation of page,contextualised aisles and enhanced contentShoppers will buy when they see a product page specifically weighted to the issues they care ab
90、out or the dietary need states they have.In an ideal retail landscape,a shopper with a dairy intolerance could see suitable products ranked first and be offered product information about the dairy-free credentials of a brand first.They could see inspirational recipes and content about dairy-free coo
91、king.Enriched content that surfaces contextually to their dietary need.2023 Nielsen Consumer LLC.All rights reserved.20Case Study04US supermarket chain Target offers an online Healthier eating made easy page on its online store where you are invited to find food that fits your lifestyle.Tabs on the
92、Explore by lifestyle page offer clicks through to Keto-friendly,Gluten-free,Plant-based,Vegan or Organic pages with products to match.Enhanced content also offers Better-for-you meals such a plant-based stuffed peppers again with links through to the products needed for the recipe.Target:How the sup
93、ermarket chain makes healthier eating easy 2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.The future The future of shopping with allergies 21Grocery shopping with food allergies could be easier in future with advanced,new technologies.Innovations include
94、Phone appsthat scan a product and instantly produce a personalised risk rating.https:/sifter.shop/for example,checks whether a product fits your diet profile via a smartphone app based on hundreds of different attributes,diets,allergens,ingredients,brands and retailers.Portable allergen testers.Gadg
95、ets could help you instantly test food for allergens before eating.Allergy Amulet is a wearable,USB-sized food reader that can test for dairy and peanuts in food.The goal is expand it to other allergens,such as wheat.Users wear an amulet as a key chain,necklace or bracelet and it can carry out an in
96、stant allergen test via a single-use test strip.Meanwhile,Bluetooth enabled Ally is a palm-sized electronic device that tests a small food sample instantly.Smart packaging that gives you allergen warning flashing up live warnings that your product is listed for recall because of unexpected contamina
97、tion in the processing plant.Artificial Intelligence(AI)that uses sensors to track allergens throughout the whole supply chain.AI toolsthat can be used in-store and online to enable personalised product recommendations that meet dietary need states.A study by London technology firm Spoon Guru found
98、AI was able to identify products containing nuts better than a team of human registered dietitians and clinical allergists and make fewer mistakes.Gene-editing techniques.These could allow scientists to edit a plants genome to remove allergenic traits.Something called CRISPR genome-editingtechniques
99、 look set to be capable of generating an allergy-free peanut.2023 Nielsen Consumer LLC.All rights reserved.What to do nextYour Next Steps 22An expectation rather than a trend Shoppers are increasingly approaching their grocery shop with multiple dietary needs.But as awareness of allergies and health
100、 grows,shoppers expect to have their needs met and they will head to the brands and retailers that support those needs best.Call out attributes on labelFar too many brands can call out an attribute,such as gluten free,on their label and packaging but fail to do so.Check through your product listings
101、 and call out everything that meets required standards.Enhance content and searchability Millions of shoppers around the world are adhering to a diet or health-related programme and they are searching for specific product attributes each time they shop.Enhance content so that they can find what they need at the time they need it and access content that explains clearly why a product fits their requirements.1.2.3.