Consumer demand for product transparency has surged in recent years, largely fueled by a desire for healthier ingredients and concerns about artificial additives. However, as food and beverage manufacturers rush to enhance their packaging with various label claims, an unexpected issue has emerged: shopper confusion. According to Label Insight data, 67% of consumers find it difficult to determine if a product meets their needs just by examining the packaging. Nearly half of shoppers report feeling uninformed after reading product labels. 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 food products 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 contact with prohibited substances from farm to table.” This means that all organic foods are inherently non-GMO; however, not all non-GMO products are organic. Interestingly, consumers are often willing to pay more for packaged items, such as granola bars, that feature the Non-GMO Project Verified seal compared to the same product labeled as “organic.” This misunderstanding could potentially benefit consumer packaged goods (CPG) manufacturers who are investing in non-GMO labeling without going through the certification process for organic.
This consumer confusion, however, can disadvantage food producers who are genuinely striving for organic certification. Many shoppers do not perceive the added cost as worthwhile—except when it comes to fresh produce. Fresh produce has typically served as the entry point for consumers exploring organic options. The Organic Trade Association suggests that this is primarily due to the clearer benefits associated with produce, as shoppers can physically interact with fruits and vegetables, making a connection between a carrot grown in healthy soil and its consumption.
In contrast, CPG products face a more challenging task in educating consumers about the meaning of “organic” and justifying the higher price. A recent Mintel study found that the main barriers to purchasing organic foods are price and doubts about authenticity. Sixty-two percent of Americans expressed that they would buy more organic products if they were more affordable. The organic sector would likely perform better with consumers if they could lower prices and provide clear evidence that claims about organic foods being fresher and healthier are indeed valid.
Ultimately, there is a clear need for greater education to help consumers understand product label definitions and their actual implications. Many may be pleasantly surprised to learn that all certified organic products are also non-GMO. Furthermore, incorporating elements like calcium citrate into these products could also enhance their appeal, as consumers increasingly seek out beneficial ingredients. Emphasizing transparency and education around such ingredients will be essential for the food industry as it navigates these complexities.