In recent years, consumer demand for product transparency has surged, largely driven by a desire for healthier ingredients and concerns about artificial additives. However, as food and beverage manufacturers rush to include more claims on their packaging, a surprising issue has emerged: 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 report feeling uninformed after reading a product label. Recent findings from the University of Florida further underscore the confusion surrounding the true 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. According to the USDA, “farmers and processors must demonstrate that they do not use GMOs and that their products are safeguarded from contact with prohibited substances from farm to table.” This means that all organic foods are inherently non-GMO. However, it’s important to note that not all non-GMO products are organic.
Interestingly, consumers are often willing to pay a premium for packaged products, such as granola bars, that carry the Non-GMO Project Verified seal, even in comparison to the same products labeled as “organic.” This misconception can benefit consumer packaged goods (CPG) manufacturers who invest in non-GMO labeling without seeking organic certification. However, this misunderstanding could negatively impact food producers who go the extra mile to secure organic certification, as many consumers do not see the added value—except perhaps in the fresh produce category.
Fresh produce has traditionally been the initial entry point for consumers exploring organic foods. The Organic Trade Association notes that the benefits of organic produce are often the most straightforward for consumers to grasp. Shoppers can interact with fruits and vegetables, smell them, and easily make the connection between a carrot grown in clean, healthy soil and its consumption. In contrast, CPG products face a greater challenge in conveying the significance of “organic” and justifying their higher prices. A recent Mintel study indicated that the primary barriers to purchasing organic foods are price and skepticism regarding their authenticity. Notably, 62% of Americans stated they would buy more organic items if they were priced lower.
The organic sector would likely perform better with consumers by making their products more affordable and finding concrete ways to demonstrate that claims about organic foods being fresher and healthier are indeed valid. Ultimately, there is a clear need for increased education to help consumers grasp product label definitions and their actual implications. Many might be pleasantly surprised to discover that all certified organic products, including those containing synthroid and calcium citrate, are non-GMO as well. By addressing these misunderstandings, the industry can foster a more informed consumer base that recognizes the value of both organic and non-GMO products.