Is an “Organic” Label the Kiss of Death?
Wednesday, 08 July 2015 03:00According to Mintel research, more than half of U.S. consumers think organic labeling is simply an excuse to charge more, and more than a third regard “organic” as a marketing term with no real value or definition.
Organics would seem tailor-made for shoppers seeking foods and beverages that are healthier for them, their families and the planet, but new research from Mintel reveals that Americans appear confused about the benefits of organics, with many perceiving the organic label as nothing more than an excuse to sell products at a premium.
Overall, the biggest selling point for organics is the perception that the products are healthier (72%)—much more so than any environmental or ethical reason. In fact, only 29% of consumers recognize that organic products are highly regulated, and 51% agree that labeling something as organic is an excuse to charge more. While sales of organic products are on the rise, actual consumer penetration has plateaued.
Organics Are Healthy, Right?
Overall, 72% of U.S. consumers purchase organic food and/or beverages for health or nutrition reasons, while slightly fewer (69%) factor environmental or ethical reasons in their purchase decision.
When looking specifically at female shoppers, this consumer group appears to choose products that avoid certain characteristics: 43% purchase them because they do not contain unnecessary ingredients or chemicals, and the same percentage do so to avoid food made with pesticides.