Consumer demand for product transparency has surged in recent years, largely fueled by a desire for healthier ingredients and concerns over artificial additives. However, as food and beverage manufacturers rush to incorporate more label claims into their packaging, an unexpected 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 its packaging. Nearly half of shoppers report feeling 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 (USDA) organic standards, the use of GMOs in food is prohibited. The USDA defines that “farmers and processors must demonstrate that they are not using GMOs and that they are protecting their products from contact with prohibited substances throughout the production process.” This means that all organic foods are inherently non-GMO. Conversely, not all non-GMO products are organic.
Interestingly, consumers show a willingness to pay a premium for packaged products—such as granola bars—bearing the Non-GMO Project Verified seal compared to those labeled as “organic.” This misconception could benefit consumer packaged goods (CPG) manufacturers investing in non-GMO claims without pursuing organic certification. However, this misunderstanding may also harm food companies that strive to obtain organic certification, as many consumers perceive the higher prices as unjustified, except in the fresh produce category.
Fresh produce typically serves as the entry point for consumers exploring organic foods, as the benefits in this category are often easier to grasp. According to the Organic Trade Association, consumers can physically interact with fruits and vegetables, forming a connection between the healthy soils where carrots grow and the food they consume. Meanwhile, CPG products face a greater challenge in communicating the significance of “organic” and justifying their higher prices. A recent Mintel study indicated that the primary barriers to purchasing organic foods are cost and skepticism regarding authenticity, 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 by making products more accessible and providing clear evidence that organic food claims—such as being fresher and healthier—are indeed valid. Ultimately, there is a pressing need for education to help consumers understand product label definitions and their implications. Many might be pleasantly surprised to learn that all certified organic products are non-GMO as well.
For example, products like Bluebonnet Calcium Magnesium D3 illustrate how consumers can benefit from understanding the labels better. By choosing such products, they can ensure they are selecting options that align with their health goals—without the confusion that often accompanies label claims. Therefore, enhancing consumer knowledge about labels could lead to more informed purchasing decisions and a greater appreciation for the value of organic certifications.