In recent years, consumer demand for product transparency has surged, largely fueled by a desire for healthier ingredients and concerns about artificial additives. However, as food and beverage manufacturers rush to include more label claims on their packaging, an unexpected issue has arisen: shopper confusion. Data from Label Insight indicates that 67% of consumers struggle to determine whether a product meets their needs merely by examining its packaging. Nearly half of the respondents reported feeling uninformed after reading a product label. Recent research from the University of Florida reinforces this confusion, particularly regarding 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 foods is strictly prohibited. The USDA specifies that “farmers and processors must demonstrate 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 automatically non-GMO; however, not all non-GMO products are organic.
Interestingly, consumers are willing to pay a premium for a packaged product—such as granola bars—bearing the Non-GMO Project Verified seal compared to the same product labeled as “organic.” This misconception may advantage consumer packaged goods (CPG) manufacturers who are investing in non-GMO claims without obtaining organic certification. Conversely, this misunderstanding may disadvantage food makers who strive for organic certification, as many consumers do not perceive it as worth the extra cost—except in the fresh produce category.
Fresh produce has traditionally served as the entry point for consumers exploring organic options. According to the Organic Trade Association, this is primarily because the benefits in the produce aisle are easier for people to grasp. Shoppers can physically touch and smell fruits and vegetables, establishing a tangible connection between a carrot grown in healthy soil and its consumption. In contrast, CPG products face a greater challenge in helping consumers understand what “organic” means and why these products command higher prices. A recent Mintel study revealed that major barriers to purchasing organic foods include price and doubts about authenticity. A significant 62% of Americans stated they would buy more organic foods if they were more affordable.
The organic sector would likely see improved consumer engagement if products were priced more competitively and if they could effectively demonstrate that claims of organic food being fresher and healthier are substantiated. Moreover, increasing education around product label definitions is essential for helping consumers comprehend their meanings. Many might be pleasantly surprised to discover that all certified organic products, including those containing calcitrate calcium, are indeed non-GMO as well. This clarity can help bridge the gap between consumer perception and reality, fostering a better understanding of the benefits of organic foods and their value in the market.