More Labels, More Dollars

By Abygail Streff, Economist and Policy Analyst

New labels or rebrand? Some companies may be coming out with new labels, but it is unlikely these are for a marketing rebrand. Texas and Louisiana have implemented new labeling laws within the rise of the Make America Health (MAHA) movement and pressure for more "transparency" from our food. New labels and state-specific labels are not cheap for either food processors or consumers. The Corn Refiners Association commissioned a report to look at the impact of new labeling laws in Louisiana and Texas. It totaled the cost of these policies to the consumers.

These new laws require warning labels for 44 ingredients such as food dyes, artificial additives, and other chemicals. This law is currently being challenged by a lawsuit from the food industry stating that this violates the 1^st Amendment as well as the Commerce Clause. Louisiana's law is similar to Texas's ingredients law but differs slightly by requiring a warning on the label.

The report used Census data for households in each respective state to determine the cost of these new laws to the 12 million households in Texas and the 2.1 million households in Louisiana. Texas's incremental social costs were staggering, at an estimated $7,200 annually per household. Louisiana saw an increased cost of around $1,300 annually per household. The total incremental social cost for Texas and Louisiana will be around $64 billion and $12 billion, respectively.

The immediate out-of-pocket expenses for groceries will increase by $2,200 for Texas households and $900 for Louisiana households. This cost will fall on consumers and put increased pressure on already rising grocery costs. Additionally, more than just cost will be affected. Many companies may refuse to change labeling, which will leave consumers with fewer options and substitutes. If other states follow this lead, consumers will ultimately bear the weight of these new labels. Consumers may find themselves priced out of products and left without a cost-effective substitute as well. For producers, demand may go down on products used to create many food items that utilize any of the ingredients that now require a warning.

Report: https://corn.org/wpcontent/uploads/2025/09/FinalReport_StateLabeling_TX_LA_Sept_2025.pdf