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  1. Economic Impact Analyses of FDA Regulations

Food Labeling: Front-of-Package Nutrition Information (Proposed Rule)

The proposed rule, if finalized, would require certain nutrition information to appear in a compact informational box (Nutrition Info box) on the front of most foods bearing a Nutrition Facts label. The Nutrition Info box would provide consumers with interpretive nutrition information that can help them quickly and easily identify how foods can be part of a healthy diet, thereby promoting public health. The proposed rule, if finalized, would also amend low sodium and low saturated fat nutrient content claim regulations to align with current nutrition science and avoid within-label inconsistencies. We quantify costs to the packaged food industry from updating labeling to meet the proposed requirements. Annualized costs from relabeling over ten years would range from $66 million to $154 million at a 2 percent discount rate, with a primary estimate of $105 million per year.  

Although reformulation is not a requirement or goal of the proposed rule, we also quantify the costs of reformulation as the rule may result in some food manufacturers reformulating some food products. We estimate that the annualized costs for reformulation over 10 years would range from $125 million to $377 million at a 2 percent discount rate, with a primary estimate of $227 million.  Combined, we estimate the annualized costs of the proposed rule over 10 years would range from $191 to $530 million at a 2 percent discount rate, with a primary estimate of $333 million.

The benefits of this proposed rule, if finalized, would come from the value consumers receive from the information provided by the interpretive front-of-package (FOP) label on food packages. The proposed rule may result in industry voluntarily reformulating products based on the interpretive label information or to maintain nutrient content claims, if some manufacturers choose to do so.

Regulatory Impact Analysis

Food Labeling: Front-of-Package Nutrition Information (PDF- 1.64MB)

Federal Register: 90 FR 5426 2
Publication Date: 01/16/2025
Docket: FDA-2024-N-2910  
 

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