Behind the Buzz: What Consumers Think of Organic Labeling

By Laurie Demerit


Organic continues to flex its muscle across many food categories. It can no longer be ignored as a cliquish niche player within the giant multibillion dollar food industry. Yet, while the media has helped to create a lot of buzz around the term “organic” and raise awareness levels among consumers, an assortment of industry groups and advocacy groups are at odds with each other over proposed changes to the USDA National Organic Program (NOP) that went into effect in 2002.

A recent New York Times article, “What is Organic? Powerful Players Want a Say,” highlights the growth of organic foods in mainstream retail channels and delves into the argument about retaining the purity of organic standards for the sake of increased growth rates. As the debate over organic definition, standardization, certification, enforcement and the role of the federal government roars on, what matters most is talked about least: what do consumers think?

When the NOP was first implemented, the general consensus among organic manufacturers, retailers and trade organizations was that the regulations would spur consumer purchases of organic products, mainly because there would finally be national standards to bolster consumer confidence. This has not proven to be the case among consumers. Consumers were not waiting around for the label so that they could finally “trust” the products. Rather, those consumers who believed in the value of organics (core wellness consumers) purchased organics, those who didn’t see the value (periphery wellness consumers) did not purchase organics.

Clearly, it’s the buzz about organic and not the label and associated government regulation that continues to fuel organic growth. Government regulation of particular categories of food products, such as organic, is not the magic elixir consumers are seeking or that processors expect.

Moreover, certification or regulation itself is not what most consumers care about when buying organic products. Although consumers claim to care about certification and the “science” behind organic products, by observing their behavior in this category it is evident that these factors play little role in their purchase decisions.

What then does “organic” mean to consumers? For many, the word “organic” is primarily a marker—a word that symbolizes a lifestyle that they want to be a part of.

The mainstream organic consumers of today would be hard-pressed to define organic as more than “a product with fewer pesticides.” The specifics of certification and regulation, rarely, if ever come up in interviews with consumers. Organic, to them, means healthy food that they feel good about bringing home to the family.

Does this mean that standards have had no effect on consumer behavior? Absolutely not. The effect, however, has been much less direct than had been previously believed. We know that the term “organic” has created a buzz among consumers, not to mention food manufacturers and retailers. Primarily buzz is created through the media as well as the social networks of consumers themselves. With the amendment to labeling regulations in the news, the media has once again given exposure to the organic marketplace. With every New York Times story, Associated Press mention or spot on the evening news, organic creates more buzz among consumers.

Through this buzz, consumers will continue to hear about organic. Increased awareness will lead to increased interest and ultimately will influence the consumer’s purchase decisions as he or she seeks out more organic products. So, if the USDA’s organic seal does not provide a compelling reason to buy, what are consumers looking at and looking for on labels?

What’s in a Label?
Today’s food and beverage product labeling is a complex mix of words and symbols. Consumers are not just sold to by the brand name, images and health claims printed on package labels, but bottles, boxes and cans are ideal storyboards for telling product narratives. In addition, the nutrition facts and the ingredient list combined with any official looking seal add a level of government-enforced reporting on a product that many consumers are only beginning to understand how to use.

Facing a myriad of diverse information, why do consumers look for something on a label? There are forces at work, many of which are controlled in the home as opposed to in the store, that trigger consumers to seek out products with specific ingredients, content claims or product attributes. While we find much of the actual activity of label reading occurs at the shelf, the cultural forces behind reading labels are heavily influenced by what is happening in consumers’ home lives and where they are positioned in the core, mid-level or periphery in terms of the world of wellness.

Factors at home that can influence what gets read on a package label include the media, consumer lifestage, household structure, religion, health conditions, and diet and weight management programs. There are also critical times in which labels are largely ignored, and these would include occasions that center on indulging (“When I splurge, I don’t look at anything”), seasonal influences (e.g., summer cookouts, school vacations), travel (for business or pleasure) and special events (e.g., parties, sporting events, dining out).

For the vast majority of consumers, careful label reading remains a largely unnecessary activity, in most instances serving only to define what it is they are purchasing or consuming. Table 1 provides examples of how each wellness segment may or may not utilize packaging language. These simple examples help to illustrate some of the underlying lifestyle and dietary forces that shape a consumer’s perception of a label.


Table 1. Example of package labeling language by wellness segment.

Different Approaches to Reading Labels
Within the world of wellness, core, mid-level and periphery consumers rank dimensions differently based on the perceived importance when examining a product for purchase. A core consumer, for instance, looks first at the ingredients listed on the side panel, and then examines the nutrition facts as well as the assorted seals and certifications.

Mid-level consumers have differing priorities. As shoppers who frequent traditional grocery stores, but may shop both the natural section and the traditional aisles, these consumers pay closer attention to categorical product descriptions (“macaroni and cheese”) in part comparing traditional product categories and their organic or natural counterparts. After the product description, mid-level consumers consider nutrition facts, brand and ingredient list when reading labels.

Consumers in the periphery, like mid-level shoppers, rely on product descriptions, but only as a way to choose products among mostly traditional/conventional categories. Brand and health claims are the next most critical label components for periphery wellness consumers.

Characteristics That Matter
When consumers shop for food and beverages, they look at a variety of product characteristics, ranging from brand familiarity to product expiration date to ingredients and growing methods. Figure 1 shows how the attribute of organic fits into the various purchase criteria consumers look at while on routine shopping trips. It is important to note that “routine” trips do not include special occasion trips, into which many mainstream consumers have a different set of criteria, such as shopping for organics. At the top of the list we see “expiration date” followed by “ease of preparation” and ingredients, such as “fat” and “sugar content.”

Figure 1. Strength of attributes that affect the purchase decision on routine shopping trips.

Organic labeling is important to 13 percent of consumers most of the time (always or usually). An additional 25 percent of consumers say that organic labeling sometimes affects the purchase. While organics appear at the bottom of the list, these numbers suggest that it is a variable in approximately 38 percent of consumers’ decision-making processes on routine trips. Depending on the product, the strength of various attributes will differ.

Regardless of the outcome of the national organic program amendment issue, the organic marketplace will remain strong well into the foreseeable future. Manufacturers and retailers should be mindful, however, that the effects upon future growth will occur as a result of cultural influences that take place at home and the continued adoption of organic products by mainstream consumers unconcerned with the specifics of federal regulation.

Focusing on the “buzz” about organic is one of the most important elements to help further establish organic products and brands in the mainstream consumer consciousness and that will capture the attention of consumers and resonate with their lifestyles long-term.

Laurie Demeritt is President and COO of The Hartman Group, a consulting and market research firm specializing in the analysis and interpretation of consumer lifestyles. She can be reached at laurie@hartman-group.com.