FDA’s ‘Healthy’ Label Is Secretly Driving Snack Prices Up—Are You Paying the Price?

CORVALLIS, Ore. – New research indicates that food labels marked as “healthy” significantly influence consumer behavior, leading to increased selections of healthier snack options and a willingness to pay a premium for these products. This study arrives on the heels of the FDA's update to the definition of "healthy," which now aligns with contemporary nutrition science and federal dietary guidance.

In 2024, the FDA introduced a revised definition for the term “healthy” that replaces a decades-old standard from 1992. For the first time, the agency is also proposing an “FDA healthy” label icon for food packaging, which is currently pending approval. This shift aims to help consumers make better nutrition choices by providing clearer guidance on what constitutes a healthy food product.

Led by researchers from Oregon State University and Tufts University, the study examined how the new FDA definition and label influence consumer purchasing preferences. The researchers focused on snack products, comparing items with and without these healthy labels. “Our main finding is that trust in government was an important part for people, and that they were willing to pay more for that label,” explained lead author Katherine Fuller, an assistant professor at Oregon State University specializing in consumer behavior and sustainability.

This finding resonates with previous research on the USDA “organic” label, which has also shown a correlation with higher prices. In a 2023 experiment involving 267 shoppers in six grocery stores around Boston, participants were shown images of 15 snack products—nine deemed healthy and six not. Initially, participants viewed the products without any special labels. Then, they saw the same products, with those meeting the new FDA “healthy” standards marked with either a generic healthy label or the proposed FDA-healthy label.

Participants were given a $5 cash incentive and a $10 gift card that could be applied to their selected product, establishing a real economic context for their choices. Senior author Sean Cash, chair of the Division of Agriculture, Food and Environment at Tufts University's Friedman School of Nutrition Science and Policy, remarked, “Giving study participants purchasing power in a setting that mirrored a real shopping experience let us better observe how the labels might influence behavior.”

According to the study published in Food Quality and Preference, several key findings emerged:

• Consumers showed a higher likelihood of choosing healthy snacks over unhealthy options.
• The preference for healthy snacks increased with the presence of healthy icons; while both the FDA and generic labels were effective, the FDA label's impact was notably significant.
• Participants were willing to pay an average of 59 cents more for healthy products with an FDA-endorsed label compared to unlabeled items.
• The FDA label's effectiveness was notably stronger among consumers who indicated higher levels of trust in government institutions.

“Our findings demonstrate that labels act as signals for consumers, and policy can shape how well those signals work,” said Cash. “When labels are viewed as credible, such as when they have the endorsement of a government agency, they are more likely to influence eating patterns and purchasing habits.”

Fuller added, “Right now, there is a lot of misinformation about what is healthy and what isn’t. Having a clear label, supported by scientific research, saying this is healthy because we checked, is important.”

As consumers navigate a complex landscape of food choices, the role of regulatory bodies like the FDA in establishing trustworthy labels could play a significant role in shaping public health. With ongoing debates about nutrition and health information, the potential impact of new labeling standards could help mitigate confusion and empower consumers to make informed decisions.

Co-authors of the study include Julia Reedy Sharib, Bingbing Fan, and Dariush Mozaffarian from the Friedman School at Tufts University, along with Jennifer L. Pomeranz from New York University. The research received support from the National Institutes of Health’s National Heart, Lung, and Blood Institute under award number R01HL115189.