Consumer demand for product transparency has surged dramatically in recent years, primarily driven by a desire for 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. According to data from Label Insight, 67% of consumers find it difficult to determine whether a product meets their needs by merely examining the packaging. Nearly half of those surveyed feel uninformed after reading a product label. Recent findings from the University of Florida further illustrate the confusion surrounding the meanings of non-GMO and organic food labels.
To comply with the U.S. Department of Agriculture (USDA) organic standards, the use of GMOs in food products is strictly prohibited. As defined by the USDA, “farmers and processors must demonstrate that they are not using GMOs and that their products are safeguarded from contact with prohibited substances from farm to table.” This implies that all organic foods are inherently non-GMO. Conversely, not all non-GMO products qualify as organic.
Interestingly, consumers are often willing to pay more for packaged products, such as granola bars, that feature the Non-GMO Project Verified seal compared to the same items labeled as “organic.” This misconception can benefit consumer packaged goods (CPG) manufacturers that invest in non-GMO products without seeking organic certification. However, this misunderstanding may adversely affect food producers who are diligently working to achieve organic certification, as many consumers do not see the additional value—except in the case of fresh produce.
Fresh produce has historically served as the introductory category for consumers exploring organic options. The Organic Trade Association attributes this to the fact that the benefits of organic produce are easily grasped by shoppers. Consumers can physically engage with fruits and vegetables, smell them, and make a connection between a carrot growing in healthy soil and its consumption. In contrast, CPG products face a more significant challenge in helping consumers understand the meaning of “organic” and why these products command higher prices. A recent Mintel study revealed that the main barriers to purchasing organic foods are cost and skepticism regarding authenticity. Approximately 62% of Americans stated they would buy more organic foods if they were priced lower.
The organic sector would undoubtedly fare better with consumers if products were more affordable and if tangible evidence could demonstrate that claims regarding organic foods being fresher and healthier are accurate. Ultimately, there is a pressing need for increased education to help consumers comprehend product label definitions and their true implications. Many might be pleasantly surprised to discover that all certified organic products, including items like solaray calcium, are indeed non-GMO as well.