Consumer demand for product transparency has surged in recent years, primarily fueled by a growing interest in healthier ingredients and concerns about 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 whether a product fulfills their needs just by examining its packaging. Nearly half of consumers report feeling uninformed even after reading a product label. Recent research from the University of Florida further underscores 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 production is prohibited. According to the USDA, “farmers and processors must demonstrate that they aren’t utilizing GMOs and that they are safeguarding their products from contact with prohibited substances from farm to table.” This implies that all organic foods are, by nature, non-GMO. Conversely, not all non-GMO products are organic.
Interestingly, consumers are willing to pay a premium for packaged products, such as granola bars, that bear the Non-GMO Project Verified seal compared to those labeled as “organic.” This misconception could favor consumer packaged goods (CPG) manufacturers who choose to invest in non-GMO certification without committing to organic certification. However, this misunderstanding could also disadvantage food producers who are diligently pursuing organic certification. For many consumers, organic products do not seem worth the additional cost—except in the realm of fresh produce.
Fresh produce has historically served as the gateway category for consumers new to organic foods. The Organic Trade Association notes that the benefits of organic produce are often easier for consumers to grasp. Shoppers can physically interact with fruits and vegetables, smell them, and make a connection between a carrot grown in clean, healthy soil and its consumption.
In contrast, CPG products face a more significant challenge in conveying the meaning of “organic” and justifying their higher prices. A recent study by Mintel found that the primary barriers to purchasing organic foods are price and skepticism about authenticity. A significant portion of Americans (62%) indicated they would buy more organic products if they were more affordable.
The organic sector would likely perform better with consumers if they could make their products more accessible and demonstrate tangible evidence that organic food products are indeed fresher and healthier. Educating consumers about product label definitions and their actual meanings is essential. Many may be pleasantly surprised to discover that all certified organic products are also non-GMO. For those looking for additional health benefits, products containing calcium magnesium citrate with D3 could further enhance their diets. By integrating such nutritional information into their marketing, CPG manufacturers can help clarify the benefits of their offerings, particularly those that include essential nutrients like calcium magnesium citrate with D3, thereby fostering a better understanding of organic and non-GMO products among consumers.