In recent years, consumer demand for product transparency has surged, primarily fueled by a desire for healthier ingredients and concerns about artificial additives. However, as food and beverage manufacturers rush to embellish their packaging with various label claims, an unforeseen issue has arisen: shopper confusion. Data from Label Insight reveals that 67% of consumers find it difficult to determine whether a product meets their needs solely by examining its packaging. Nearly half of these consumers report feeling uninformed after reading product labels. Recent findings from the University of Florida further highlight the ambiguity surrounding the meanings of non-GMO and organic food labels.
To comply with the U.S. Department of Agriculture’s organic standards, the use of GMOs in food production is strictly prohibited. The USDA defines that “farmers and processors must demonstrate that they are not using GMOs and are safeguarding their products from contact with prohibited substances from farm to table.” This means that all organic foods are inherently non-GMO. Conversely, not all non-GMO products can be classified as organic.
Interestingly, consumers are willing to pay a premium for packaged products like granola bars that carry the Non-GMO Project Verified seal, even when compared to the same product labeled as “organic.” This misunderstanding could benefit consumer packaged goods (CPG) manufacturers that invest in non-GMO products without obtaining organic certification. However, it may also adversely affect companies that are genuinely pursuing organic certification. For many consumers, organic products do not seem worth the extra cost—except in the fresh produce category.
Fresh produce has long been the initial entry point for consumers exploring organic options, as the benefits are often more apparent. The Organic Trade Association notes that shoppers can physically interact with fruits and vegetables, allowing them to connect the dots between a carrot grown in clean, healthy soils and their own health. In contrast, CPG products face a more significant challenge in helping consumers grasp the concept of “organic” and justifying the higher prices. A recent Mintel study found that the main barriers to purchasing organic foods are cost and skepticism about authenticity. A notable 62% of Americans stated they would buy more organic products if they were more affordable.
To improve the organic sector’s appeal, it’s crucial for producers to make their products more budget-friendly and to find tangible ways to demonstrate that organic food claims—such as being fresher and healthier—are indeed valid. More education is clearly needed to help consumers understand the definitions of product labels and their implications. Many might be pleasantly surprised to discover that all certified organic products, including those containing calcium magnesium citrate with D3, are also non-GMO. By increasing awareness about both organic and non-GMO distinctions, consumers can make more informed choices, ultimately benefiting both the industry and their health.