“From the consumer’s perspective, ‘natural’ is symbolic – they’re seeing an ideal of ‘natural’ that would mean that the food and beverages they buy are healthy, whole, real and minimally processed” says Shelley Balanko, Ph.D., vice president of ethnographic research, Hartman Group, Bellevue, WA. “There are a variety of attributes that are necessary for ‘natural’ – nothing artificial (e.g. colors, flavors, etc.), no preservatives, no additives or fillers, minimally processed, short (clean) ingredient line, recognizable (real) ingredients,” In addition, she finds that consumers believe natural foods and beverages should also be healthy – low in fat, sugar and salt, while high in “ingredients with inherent healthfulness, such as fruits, vegetables, whole grains, etc.”

A Sept. 2009 Mintel survey reveals that 59% of respondents believe food and beverages labeled as “natural” must meet a government standard. However, from a federal perspective, the term ‘natural’ remains rather nebulous

“In the preamble to a 1993 rule on nutrient-content claims, the FDA defines ‘natural’ as nothing artificial or synthetic – including all color additives, regardless of source – has been included in, or has been added to, a food that would not normally be expected in the food,” says Jennifer Guild, global food science and regulatory manager, D.D. Williamson Louisville, KY.

FDA clearly outlines colors exempt from certification (generally considered the natural colors; see Title 21 of the Code of Federal Regulations, Part 73). There are approximately 20 “selected naturally derived food color additives exempt from certification,” including, for example, annatto extract, dehydrated beets (beet powder), caramel, beta-carotene, etc.

Also, USDA has set some general rules for natural meats (no artificial ingredients or added color, only “minimally” processed). Guild notes that minimal processing would include smoking, roasting, freezing, drying and fermenting. “Relatively severe processes – e.g. solvent extraction, acid hydrolysis and chemical bleaching – would clearly be considered more than minimal processing.”

Anything that deviates from the realm of ingredients found in consumers’ home kitchens causes concern, notes Balanko. For the consumer, the absence if pesticides, growth hormones, genetically modified ingredients and antibiotics helps define natural foods.

“From the consumer standpoint, they’re confused,” says Steven French, managing partner, Natural Marketing Institute, Philadelphia. “Some think ‘natural’ foods contain no pesticides.”

Balanko also notes that consumers aren’t paying a lot of attention to brands. In fact, Mintel’s Dec. 2009 report, “Natural Products Marketplace Review: Shelf-Stable Foods-U.S., ” cited a 38% growth from 2006 to 2009 for natural and organic foods, with much of this coming from private-label products, suggesting the sector could grow from $6 billion in 2009 to $7.5 billion by 2012.

Supermarket chains increasingly want restaurant-quality products created by outside manufacturers to sell via their own private label. “Every retailer wants items to be proprietary – about 98% of what we do is for private label, i.e., branding that’s their own,” says Steven Petusevsky, director of retail culinary innovation, Neco Foods, Lantana, FL. “A lot of clients are looking for completely “clean” and “natural”. Others want the most-gentle shelf-life stabilizers within the ‘natural’ realm, while there’s also a level of people purely driven by shelf life.”

In 1995, Petusevsky was executive chef at Unicorn Village, a pioneering natural and organic retail store in North Miami, FL, when Whole Foods Market bought it. He remained on staff at Whole Foods for seven years, and recently joined Neco, where he continues to refer to the Whole Foods “Unacceptable Ingredients for Food” list- all of the ingredients it deems to be outside the “natural” realm. It’s a list he helped compile, and one that’s sacrosanct to product formulators from coast to coast; if a product contains anything on the list, Whole Foods will not sell it.

In fact, Mike Bunn, CDM, CFPP, director of production and research chef, Neco Foods, has a copy of the list prominently tacked up on his bulletin board to make sure any ingredient he’s thinking of adding to extend product shelf life won’t push a product out of the natural arena, as defined by Whole Foods. He often goes with an antimicrobial product naturally derived from fermented milk or dextrose, as well as another based on lauric acid, which is found in coconut oil and palm kernel oil.

“Fermented” is a common term used in the realm of natural ingredients, Joe Leslie, national sales and marketing manager, Kikkoman Sales USA, Inc., San Francisco, highlights the natural, six-month- long fermentation process that’s key to the production of his company’s soy sauce. “Typically, we’ve used the USDA definition of ‘natural’ from the Food Standards and Labeling Policy Book,” he says. “Our soy sauce is fermented and fermentation is defined as ‘minimal processing’ like smoking, roasting, etc. As long as we don’t add a preservative, we’re natural”.

“So many food manufacturers are now interested in having ‘natural’, that about 80% of customers are purchasing our products without preservatives,” continues Leslie. “Plus, the vast majority of our new products in the last two or three years that we’re designing for the retail market are all natural without preservatives; we never added artificial colors or flavors.”

In 2007, researchers at the University of Southampton in England published results from a study that suggested a connection between ingestion of artificial colors and hyperactivity in children. The effects of this study resulted in a new labeling regulation of the European Union requiring foods that contain any of six synthetic colorants to include that the color “may have an adverse effect on activity and attention in children” on the label.

“There’s some debate as to the merits of the study,” say Campbell Barnum, vice president for branding and market development, D.D.Williamson. As a result of this newly required warning, large European food companies are now “exploring naturally derived options in U.S. product formulations.” (In the wake of the EU ruling, CSPI has petitioned the FDA for a ban on synthetic artificial color additives, so stay tuned …)

Barnum concedes that using synthetic colors is more economical, more stable and requires less dosage, by he sees manufacturers now performing more tests “in case they decide to make a switch, and in new products we continue to see request for solutions that are naturally derived.” Although he admits it’s more challenging to formulate with naturally derived colors, “working with suppliers can help customers get the hue they need after communication on the processing and stability parameters for a customer’s specific food or beverage application.” The company defines naturally derived color additives as those: derived from agricultural, biological or mineral sources; manufactured via a simple process; and having a long history of safe use.

The choice of packaging can also influence the consumer’s ultimate perception of the “natural” quality of a product. “For us, there’s a focus on green and using less plastic,” says John Cantwell, corporate chef, Neco Foods. “Now we’re also looking at removable labels- new here, but big in Europe- utilizing less material for recycling purposes.”

Balanko underscores the point that since “natural” is largely symbolic in consumers’ minds, packaging elements that “cue natural” can support the product’s authenticity and credibility, noting that too much plastic, as well as bright, shiny colors and cartoonish graphics, can erode the “natural” perception. She adds that clear packaging, or windows, can help, and if paper is used it should be recyclable or look as though it’s made from recycled material. Simple, clean type fonts, as well as colors that come from nature, such as green, brown, and white, all add to the perception, she notes.

But although studies have shown that consumers are paying more attention to packaging, French notes that “it’s not a top driver of purchasing decisions. It’s all about taste, convenience and value- with nutrition coming in fourth, and interest in sustainable packaging remaining toward the bottom of the priority list.”

In dollars and cents terms, in this tight economy, just what is the market potential for natural processed foods in the Untied States? “There’s a return to natural with both mainstream and second-tier manufacturers now launching,” says French, noting that the introduction of the natural category happened decades ago. “Companies want to eliminate colors, flavors and other ingredients that are artificial. We’ve seen activity in all sorts of food and beverage categories. Yes, the market potentials still relevant.”

As the market for natural foods continues to grow, the ability to more-precisely determine it’s strength will become necessary. Currently, most market research still groups natural and organic foods together despite the fact that they display some notable differences – both in regulation and perception by consumers. But an array of indicators points to continued activity in the category, and if federal regulators decide to join this discussion, growth could prove quite explosive.