In recent years, consumer demand for product transparency has surged, largely fueled by an interest in healthier ingredients and concerns over artificial additives. However, as food and beverage manufacturers rush to enhance their product packaging with various label claims, an unexpected issue has emerged: shopper confusion. Data from Label Insight reveals that 67% of consumers struggle to determine if a product meets their needs merely by examining its packaging. Nearly half of them feel uninformed after reading a product label. Recent findings from the University of Florida further highlight the confusion 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 is prohibited. The USDA states that “farmers and processors must demonstrate they aren’t using GMOs and that they are safeguarding their products from contact with prohibited substances from farm to table.” Therefore, all organic foods are inherently non-GMO. However, it’s important to note that not all non-GMO products are organic.
Despite this, consumers are willing to pay a premium for packaged products like granola bars that carry the Non-GMO Project Verified seal, even compared to the same products labeled “organic.” This misunderstanding could benefit consumer packaged goods (CPG) manufacturers that invest in non-GMO products without pursuing organic certification. Conversely, this consumer misconception may adversely affect food producers who are committed to obtaining organic certification, as many shoppers do not see the added value—except when it comes to fresh produce.
Fresh produce has long been the entry point for consumers new to organic foods, as the benefits in this category are often clearer. The Organic Trade Association notes that consumers can touch, smell, and relate the experience of a carrot growing in clean, healthy soil to their own health. In contrast, CPG products face a more significant challenge in helping consumers grasp the implications of “organic” and justify the higher prices. A recent Mintel study indicates that price and skepticism about authenticity are major barriers to purchasing organic foods. In fact, 62% of Americans stated they would buy more organic products if they were priced lower.
The organic sector could better engage consumers by making products more affordable and providing tangible evidence that organic food claims—such as being fresher and healthier—are indeed accurate. For instance, when discussing health benefits, many consumers may not realize that products like calcium citrate can offer significant advantages, including improved absorption of calcium. Therefore, more education is essential to help consumers understand product label definitions and their implications. Many might be pleasantly surprised to discover that all certified organic products are also non-GMO, while also learning about the benefits of ingredients like calcium citrate.