What’s In a Label?

Nicole Wisniewski

Think an organic label means something to the average consumer?

Think again. According to new research from Mintel (a marketing intelligence agency), 71% of consumers don’t think organic products have a labeling standard and 51% believe labeling a product or service as organic is just an excuse to charge more.

Even though sales continue to increase for the $105 billion industry, the report also says consumer penetration has plateaued. So, unless marketing improves, all of the people likely to buy organic are already buying organic.

“Our research finds half of consumers say labeling something as organic is an excuse to charge more. Considering the typically higher cost of organic foods and beverages, consumers are increasingly hard pressed to justify the added expense,” said Billy Roberts, Senior Food and Drink Analyst at Mintel. “As such, sales have hit something of a plateau, where they likely will remain until consumers have a clear reason to turn to organics. This could come in the form of a growing number of lower-cost organic options, bringing a new degree of competition to the category.”

Read more of the report at Mintel.com. GP