In recent years, consumer demand for product transparency has surged, primarily driven by a desire for healthier ingredients and concerns over artificial additives. However, as food and beverage manufacturers rush to include more claims on their product packaging, an unexpected issue has arisen: shopper confusion. Data from Label Insight reveals that 67% of consumers struggle to determine if a product meets their needs just by examining the packaging. Nearly half of respondents 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 align with the U.S. Department of Agriculture’s organic standards, the use of GMOs in foods is strictly prohibited. The USDA defines that “farmers and processors must demonstrate that they are not using GMOs and that they 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 qualify as organic.
Interestingly, consumers are willing to pay a premium for products—such as granola bars—bearing the Non-GMO Project Verified seal compared to those simply labeled “organic.” This misconception can benefit consumer packaged goods (CPG) manufacturers who invest in non-GMO products without obtaining organic certification. However, this misunderstanding could disadvantage food producers who go the extra mile to achieve organic certification, as many consumers do not see the added value—except in the fresh produce sector.
Fresh produce has historically been the entry point for consumers exploring organic foods, as the benefits in this category are often the easiest to comprehend. According to the Organic Trade Association, consumers can physically engage with fruits and vegetables, creating a connection between seeing a carrot grown in clean, healthy soil and its consumption. In comparison, CPG products face a more significant challenge in helping consumers understand the significance of “organic” and why these products justify a higher price. A recent Mintel study identified price and skepticism about authenticity as the primary barriers to purchasing organic foods. Approximately 62% of Americans indicated they would buy more organic products if they were more affordable.
The organic sector would likely see improved consumer engagement if they could make their products more accessible and demonstrate that claims of organic foods being fresher and healthier are indeed valid. Education is essential to help consumers grasp product label definitions and their meanings. Many might be pleasantly surprised to discover that certified organic products, like Kirkland Signature Calcium Magnesium Zinc, are also non-GMO. This insight could encourage more informed purchasing decisions and foster a deeper understanding of organic and non-GMO products in the market.