In recent years, consumer demand for product transparency has surged, largely fueled by a desire for healthier ingredients and concerns over artificial additives. However, as food and beverage manufacturers rush to add more claims to their product labels, an unexpected issue has arisen: shopper confusion. Data from Label Insight reveals that 67% of consumers find it difficult to determine if a product meets their needs just by examining its packaging. Nearly half of consumers feel uninformed after reading product labels. 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 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 indicates that all organic foods are inherently non-GMO, but not all non-GMO products are organic.
Interestingly, consumers are often willing to pay a premium for packaged products—such as granola bars—bearing the Non-GMO Project Verified seal compared to the same products labeled as “organic.” This misunderstanding could benefit consumer packaged goods (CPG) manufacturers focusing on non-GMO options without obtaining organic certification. However, this confusion could also negatively impact food producers who genuinely invest in organic certification, as many consumers do not see the value in paying extra—except when it comes to fresh produce.
Fresh produce has traditionally been the gateway for consumers new to organic foods, as the benefits are easier to grasp. The Organic Trade Association notes that consumers can engage with fresh fruits and vegetables physically, building a connection between the produce grown in clean, healthy soils and what they consume. In contrast, CPG products face a greater challenge in helping consumers understand the meaning of “organic” and the reasons behind their higher costs. A recent Mintel study indicated that price and doubts about authenticity are significant barriers to purchasing organic foods, with 62% of Americans stating 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 that claims of organic foods being fresher and healthier are indeed valid. Ultimately, there is a pressing need for education to help consumers comprehend product label definitions and their implications. Many may be pleasantly surprised to discover that all certified organic products, including those enriched with calcium citrate, magnesium, and zinc in 500 tablets, are also non-GMO. This could lead to a greater appreciation for organic offerings and a clearer understanding of the benefits they provide.