Many U.S. consumers don’t understand the purpose of the USDA organic label or the regulations behind it, according to a new report from Mintel.
The report on organic food and beverage shoppers in the U.S. found 51% believe labeling something as organic is an excuse to charge more. In addition, 38% say the term organic is a marketing term with no real value or definition.
“Considering the typically higher cost of organic foods and beverages, consumers are increasingly hard pressed to justify the added expense,” Billy Roberts, senior food and drink analyst at Mintel, said in a press release. “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.”