Consumer demand for product transparency has surged in recent years, largely driven by a desire for healthier ingredients and concerns about artificial additives. However, as food and beverage manufacturers rush to enhance their product packaging with more label claims, an unexpected issue has arisen: shopper confusion. According to data from Label Insight, 67% of consumers struggle to determine if a product meets their needs just by examining the packaging. Nearly half report feeling uninformed after reading product labels. Recent findings from the University of Florida further illustrate 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 this by stating 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, it’s important to note that not all non-GMO products are organic.
Despite this, consumers are willing to pay a premium for packaged items, such as granola bars, that carry the Non-GMO Project Verified seal compared to those labeled “organic.” This misunderstanding could potentially benefit consumer packaged goods (CPG) manufacturers who are investing in non-GMO claims without seeking organic certification. Conversely, this consumer confusion could adversely affect food producers who are committed to obtaining organic certification. Many consumers do not see the added value of paying more for organic products, except in the case of fresh produce.
Fresh produce has traditionally served as the gateway category for consumers new to organic foods, as the benefits in the produce aisle are often easier to grasp. The Organic Trade Association notes that consumers can physically interact with fruits and vegetables, making the connection between a carrot grown in healthy soil and its consumption. In contrast, CPG products face a greater challenge in conveying the significance of “organic” and justifying their higher costs. A recent Mintel study found that the main barriers to purchasing organic foods are price and skepticism regarding their authenticity. Sixty-two percent of Americans stated they would buy more organic products if they were more affordable.
The organic sector could undoubtedly improve its appeal to consumers by making products more accessible and finding clear ways to demonstrate that claims of organic foods being fresher and healthier are valid. Education is essential to help consumers understand product label definitions and their implications. Many might be pleasantly surprised to discover that all certified organic products are indeed non-GMO, which aligns with the growing interest in healthier options, including those enriched with calcium citrate and magnesium citrate.
In conclusion, increasing consumer education on product labels is crucial. By clarifying the distinctions between organic and non-GMO products and emphasizing the benefits of organic food—potentially enhanced by ingredients like calcium citrate and magnesium citrate—manufacturers can foster greater consumer trust and interest in organic offerings.