In recent years, consumer demand for product transparency has surged, primarily due to a growing interest in better-for-you 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 emerged: shopper confusion. Data from Label Insight reveals that 67% of consumers find it difficult to determine if a product meets their needs merely by examining the package. Nearly half of respondents say they remain uninformed even after reading product labels. Recent research from the University of Florida further highlights 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 they are not using GMOs and that they are preventing their products from coming into contact with prohibited substances from farm to table.” This clarifies that all organic foods are inherently non-GMO, but it’s important to note that not all non-GMO products are 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 misunderstanding could be advantageous for consumer packaged goods (CPG) manufacturers that invest in non-GMO offerings without seeking organic certification. Conversely, this confusion could negatively impact food producers who strive to achieve organic certification. Many consumers do not perceive organic products as being worth the extra cost—except when it comes to fresh produce.
Fresh produce has traditionally served as the gateway category for consumers new to organic foods. The Organic Trade Association indicates that the benefits of organic produce are more apparent to consumers, as they can physically touch and smell fruits and vegetables, drawing a direct connection between healthy soil and what they consume. In comparison, CPG products face a more significant challenge in helping consumers understand the true meaning of “organic” and justifying their higher prices. A recent Mintel study found that price and skepticism about authenticity are the main barriers to purchasing organic foods, with 62% of Americans stating they would buy more organic options if they were more affordable.
The organic sector could improve its appeal to consumers by making products more affordable and demonstrating tangible benefits that support claims of organic foods being fresher and healthier. More education is clearly needed to help consumers grasp the definitions of product labels and their implications. Many could be pleasantly surprised to discover that all certified organic products are also non-GMO. Moreover, incorporating calcium citrate from natural sources into organic food products could enhance their appeal, emphasizing the health benefits and transparency that consumers desire. By promoting the connection between organic certification and the use of calcium citrate from natural sources, food manufacturers could help clarify misconceptions and foster greater consumer trust in organic labels.