Food firms in Australia and New Zealand have been issued a stark warning: meet the 70% Health Star Rating (HSR) uptake targets by November next year or face mandatory implementation. The HSR labelling system, introduced voluntarily in 2014, has faced controversy but has been staunchly defended by Australian and New Zealand food ministers for its potential to improve public health.
Current Status and Challenges
The Five Year Review of the HSR system in 2019 set progressive targets: 50% uptake by November 2023, 60% by November 2024, and 70% by November 2025. However, these targets remain unmet. As of early 2024, only 30% of products in New Zealand and 32% in Australia were using the HSR label, falling significantly short of the 50% interim target for 2023 and leaving both countries far from achieving the 2024 goal.
Consumer demand for the HSR is evident. A survey by New Zealand Food Safety found that 83% of people use the HSR when purchasing a packaged food or drink for the first time, with 61% using it regularly. Despite this high consumer trust and usage, uptake among manufacturers lags behind.
Vincent Arbuckle, New Zealand Food Safety's Deputy Director-General, emphasized the benefits for producers adopting the system, noting that Kiwis trust and use the HSR. Yet, only 30% of intended products currently carry the label.
Potential Consequences and Industry Feedback
If the 70% target is not met by November 2025, both the Australian and New Zealand governments are prepared to mandate the HSR system. Recent consumer insights underscore the importance of consistent and clear labelling, with calls for improvements in text size, label boldness, clarity, and everyday language.
An industry survey of 84 respondents from Australia and New Zealand highlighted several barriers to HSR adoption. Notably, 42% of respondents not already using HSR had no plans to do so within the next year. Key reasons include limited label space, perceptions of the HSR as flawed or misleading, particularly for products like juices and olive oil, and concerns over low ratings negatively impacting sales.
Consumer Insights and Ministerial Actions
Despite industry resistance, consumer surveys reveal that many shoppers rely on the HSR. The June 2024 Consumer Food Safety Insights Survey found that a majority of Asian consumers frequently refer to the HSR when shopping, with 58% using it most of the time. Overall, 18% of all respondents always refer to it, and 43% use it at least half of the time, indicating substantial consumer engagement with the system.
Path Forward
Food industry respondents suggested several changes to improve the HSR system, such as allowing smaller HSR logos, excluding single-ingredient products from the rating, and amending the rating algorithm. These adjustments aim to address industry concerns and facilitate broader adoption.
The ministers have made it clear: voluntary compliance is preferred, but mandatory implementation looms if targets are not met. The next 17 months will be crucial for food firms in Australia and New Zealand as they strive to align with the HSR targets and avoid regulatory imposition.
For the food industry, adapting to these changes is not just about compliance but also about aligning with consumer expectations and trust in the HSR system. The upcoming months will determine whether voluntary efforts can meet public health goals or if stricter measures will be necessary.
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