In recent years, consumer demand for product transparency has surged, primarily due to an interest in healthier ingredients and concerns about artificial additives. However, as food and beverage manufacturers rush to include more claims on their packaging, 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 the packaging. Nearly half of consumers feel uninformed after reading a product label. Recent research from the University of Florida further highlights 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 foods is strictly prohibited. According to the USDA, “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.” Consequently, all organic foods are inherently non-GMO. Conversely, not all non-GMO products are organic.
Interestingly, consumers are willing to pay a premium for granola bars with the Non-GMO Project Verified seal compared to the same product labeled “organic.” This misunderstanding could benefit consumer packaged goods (CPG) manufacturers who focus on non-GMO claims without pursuing organic certification. However, this consumer confusion may negatively impact food producers who invest in obtaining organic certification, as many shoppers do not perceive organic products as worth the extra cost—except in the fresh produce category.
Fresh produce has long been the entry point for consumers exploring organic foods, primarily because the benefits in this aisle are more easily understood. The Organic Trade Association notes that consumers can physically interact with fruits and vegetables, allowing them to connect the dots between a carrot grown in clean, healthy soil and the food they consume. In contrast, CPG products face a more significant challenge in conveying the meaning of “organic” and justifying their higher prices. A recent Mintel study found that the primary barriers to purchasing organic foods are cost and skepticism about their authenticity. Notably, 62% of Americans stated they would buy more organic products if they were more affordable.
The organic sector could enhance its appeal to consumers by making products more accessible and demonstrating that claims of organic foods being fresher and healthier are valid. Ultimately, more education is essential to help consumers grasp product label definitions and their true meanings. Many might be pleasantly surprised to discover that all certified organic products, such as those fortified with calcium citrate 1000 mg elemental calcium, are also non-GMO. By increasing awareness about these attributes, the industry can foster a better understanding of the value of organic products and their associated health benefits.