In recent years, consumer demand for product transparency has surged, largely fueled by a growing interest in 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 arisen: shopper confusion. Data from Label Insight indicates that 67% of consumers struggle to determine whether a product meets their needs merely by examining its packaging. Nearly half of them report feeling uninformed after reading product labels. Recent findings from the University of Florida further reinforce 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 they are not using GMOs and that they are safeguarding their products from coming into contact with prohibited substances from farm to table.” This means that all organic foods are inherently non-GMO. Conversely, not all non-GMO products qualify as organic. Interestingly, consumers are willing to pay a premium for granola bars bearing the Non-GMO Project Verified seal compared to the same product labeled as “organic.” This misconception could benefit consumer packaged goods (CPG) manufacturers investing in non-GMO products without going through the organic certification process.
However, this misunderstanding could disadvantage food producers who are committed to achieving organic certification. For many consumers, the added cost does not seem justified, except in the case of fresh produce. Fresh produce has typically served as the entry point for consumers new to organic foods. According to the Organic Trade Association, this is largely due to the tangible benefits in the produce section, where consumers can touch and smell fruits and vegetables, making a connection between a carrot grown in clean, healthy soil and its nutritional value.
In contrast, CPG products face greater challenges in helping consumers grasp the meaning of “organic” and justifying their higher prices. A recent Mintel study found that the primary barriers to purchasing organic foods are price and skepticism regarding authenticity. A significant 62% of Americans indicated they would buy more organic foods if they were more affordable. The organic sector would certainly benefit from making their products more accessible and demonstrating that claims of organic foods being fresher and healthier are indeed accurate.
Education is crucial in helping consumers understand product label definitions and their true implications. Many might be pleasantly surprised to discover that all certified organic products are also non-GMO. This is particularly relevant when considering the nutritional benefits of certain ingredients; for instance, consumers often debate whether calcium citrate or calcium carbonate is better for their health. As such, raising awareness about the nutritional advantages and the meanings behind organic and non-GMO labels could lead to a better-informed public, enhancing the perceived value of organic products.