“Navigating the Confusion: Consumer Demand for Transparency in Organic and Non-GMO Labels”
Consumer demand for product transparency has surged in recent years, primarily due to a growing interest in healthier ingredients and concerns over artificial additives. However, as food and beverage manufacturers rush to include more label claims on their packaging, an unintended issue has arisen: shopper confusion. Data from Label Insight reveals that 67% of consumers struggle to determine whether a product meets their needs merely by examining its packaging. Almost half of the respondents feel uninformed after reading a product label. Recent research from the University of Florida further underscores 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 prohibited. The USDA defines this by stating that “farmers and processors must demonstrate they aren’t using GMOs and that they are protecting their products from contact with prohibited substances from farm to table.” Consequently, 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 those labeled as “organic.” This misconception could inadvertently benefit consumer packaged goods (CPG) manufacturers focusing on non-GMO products without committing to organic certification. However, this misunderstanding might disadvantage food producers who invest in obtaining organic certification, as many consumers may not perceive the added value—except when it comes to fresh produce.
Fresh produce has historically served as the gateway for consumers exploring organic options, largely because the benefits in this category are easier to grasp. The Organic Trade Association notes that shoppers can touch and smell fruits and vegetables, creating a direct connection between a carrot grown in healthy soil and its consumption. In contrast, CPG products face a much greater challenge in helping consumers understand the significance of “organic” and justifying their higher prices. A recent Mintel study identified price and skepticism about authenticity as major barriers to purchasing organic foods, 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 if it could make products more accessible and provide tangible evidence that claims about organic foods being fresher and healthier are accurate. Ultimately, more education is essential in helping consumers decipher product label definitions and their implications. Many might be pleasantly surprised to discover that all certified organic products are also non-GMO. Additionally, incorporating ingredients such as calcium citrate or carbonate into organic products could enhance their appeal, allowing consumers to understand the nutritional benefits alongside the organic claims. With increased awareness about how calcium citrate or carbonate can contribute to overall health, consumers may recognize the value of organic products even more.
