92% exporters prioritise labelling compliance to boost global access

Labelling compliance has become a strategic priority for Indian food exporters, with 92% of surveyed firms highlighting the need for clarity on mandatory labelling in key markets like the US, UK, EU, GCC, and Southeast Asia.

A CATR survey reveals dominant categories like spices (77%) and dairy (40%) face market-specific challenges, including EU pesticide norms and Arabic-language labels. Rooted in trade theory, the analysis underscores the need for tailored education, a centralised compliance platform, and sector-specific strategies to sustain global competitiveness.

Labelling compliance is a fundamental aspect of meeting export requirements in the global food trade. Importing countries impose strict regulations on how food products must be labelled—including mandatory declarations, permissible ingredients, allergen disclosures, and packaging norms—to ensure consumer safety, traceability, and regulatory conformity. Non-compliance can result in border rejections, penalties, product recalls, or long-term reputational damage. For exporters, especially from developing economies like India, aligning with these evolving requirements is essential to retain market access and consumer trust.

This compliance challenge is best understood through the lens of international trade theories. The Theory of Comparative Advantage suggests that countries export products where they have a cost or quality edge—such as India’s globally renowned spices, dairy, and traditional foods. Yet, capitalising on this edge depends on meeting the regulatory expectations of destination markets. Institutional Theory further emphasises the importance of navigating legal and institutional frameworks, which vary widely across regions and reflect diverse cultural norms and policy goals.

To better understand how Indian exporters are approaching these requirements, the Centre for Advanced Trade Research (CATR) conducted a survey of primarily Indian food exporters. The findings shed light on key product categories, labelling priorities, market-specific hurdles, and evolving trends in compliance. The analysis provides valuable insights for exporters striving to align with international labelling standards and sustain their global competitiveness.

Dominant product categories

The survey highlights a strong emphasis on Indian spices and blended seasonings, with 77% prioritising this category for capacity building initiatives. Dairy and value-added dairy products followed with 40%, Indian sweets and namkeen with 34%, and both AYUSH/ayurvedic products and nutraceuticals/functional foods with 30% each.

Other categories, such as frozen ready-to-eat (RTE) foods, non-alcoholic beverages, and niche products like cold-pressed edible oils, foxnut by-products, and bakery cookies, reflect a diverse export portfolio. This variety underscores the need for tailored compliance strategies, as labelling requirements differ significantly across product types and markets.

When asked to select up to three valuable labelling topics, 92% prioritised mandatory labelling requirements in leading export markets (US, UK, GCC, EU, Southeast Asia). Non-permissible ingredients/additives by country were critical for 55%, followed by common labelling gaps and non-compliance risks (51%), examples of conforming export labels (49%), and metrology/packaging norms (47%).

Allergen declarations were a concern for 36%, particularly relevant for products like dairy, peanuts, and spices, where mislabelling risks regulatory penalties or consumer harm. These preferences indicate a strong focus on understanding and mitigating compliance risks to ensure market access.

Respondents highlighted several key compliance challenges:

• Market-Specific Regulations: Exporters expressed the need for clearer guidance on EU pesticide limits for spices, Arabic-language labelling requirements in GCC markets, and US FDA standards for dairy products. The requirement for bilingual labelling, for instance in the case of rice exports to Oman, was also noted. 
• Language Barriers: Non-English regulatory requirements—especially Arabic labelling in the GCC—were cited as a cause of delays and compliance difficulties. 
• Rejections and Risks: Concerns were raised about product rejections in the EU due to labelling errors or pesticide residues, prompting a demand for stronger risk mitigation strategies. 
• Certification Requirements: Exporters of honey and ayurvedic products reported challenges in obtaining necessary conformity and organic certifications. 
• Resource Constraints: Smaller businesses identified the lack of a centralised platform for timely compliance updates as a major institutional hurdle.

Emerging trends

A further deep dive by CATR reflects the following evolving consumer preferences and institutional requirements:

• Health-Focused Products: Growing interest in vegan/plant-based foods, millets, and alternative proteins aligns with global wellness trends, requiring specific nutritional and clean-label disclosures.

• Nutritional Labelling: Emphasis on front-of-pack labelling for high-fat, salt, and sugar content to meet consumer transparency demands in markets like the EU and US.

• Specialised Regulations: Exporters seek clarity on trademark issues, especially geographical indications, to protect product authenticity and market exclusivity. This reflects the need to align with culturally specific and intellectual property-focused regulations.

• Packaging Innovation: Focus on suitable packaging materials for frozen foods, cold-pressed oils, and other niche products to meet sustainability and regulatory standards.

• Niche Product Expansion: Rising exports of products like foxnut by-products, bakery cookies, and non-alcoholic beverages necessitate tailored compliance strategies for diverse markets.

These trends highlight the need for exporters to adapt to health-driven, sustainable, and market-specific labelling requirements to stay competitive.

Conclusion

The survey underscores the need for education on mandatory labelling, non-compliance risks, and allergen declarations. Challenges like market-specific rules, language barriers, rejections, and certification gaps highlight institutional pressures. A centralised platform could empower exporters to align with global standards, leveraging India’s competitive advantages while overcoming regulatory hurdles.