Consumers, companies, and farmers attempt to make sense of their certification options.
Part 1: Consumer Appetite
**This is the first article in a 3 part series. **
Where to start?
Grocery shopping these days is somewhat of an event. In addition to meal planning and price hunting, a growing number of folks are making an effort to choose products that are better for the planet. On the one hand, today's consumers have a wider selection of environmentally and socially-beneficial brands that ever before. On the other hand, the sheer number of food certifications is overwhelming.
What do they mean?
Government Certification
Let's start with Uncle Sam. The US Government has a series of food certifications which exist to protect the consumer from false or misleading information. For example, the US Department of Agriculture (USDA) regulates the "USDA Organic" certification and is responsible for making sure that those using the "USDA Organic" label are complying with all the necessary rules and regulations.
Third Party Certification
Many of the certification schemes in today's marketplace do not originate in the government and are not overseen by any government agency. Instead, certifications like Fair Trade, Non-GMO, Rainforest Alliance, and Regenerative Organic (to name a few) are governed by a third party agency and seek to provide the consumer with additional information about a product.
Each organization has its own unique motivation for existing - animal welfare, environmental protection etc. - and therefore each organization is responsible for setting, certifying, and monitoring compliance with regulation for those who use their label.
These days it seems there are hundreds of available certification schemes, many with similar aims and objectives.
Can shoppers tell them apart? Do any of these certifications factor into purchasing decisions?
Consumers
According to a 2019 study, 3/4ths of consumers noted that one or more food certifications was important when choosing which products to buy, and 78% would be willing to pay a premium for a product with a certification.
This is especially true for my generation, Millennials, and those coming after us, Gen Z. Much has already been written about our growing preference for more sustainable, ethical products, including food. As a result, we are more likely to pay attention to food labels.
But even if we're paying attention, do we really know what these various certifications mean?
In a rigorous and highly scientific study, I surveyed a Millennial (my best friend) and a Boomer (my mom) to find out whether or not the average consumer understands certification labels.
When asked if she considered herself a "sustainability-conscious consumer," the Millennial said she "actively [tries] to shop sustainably" although sometimes misses the mark when pressed for time or juggling kids.
The Boomer said she was "ashamedly not" sustainability-conscious and looked at labels predominantly for sugar content (as sugar aggravates my parents' arthritis).
Given their shared desire to be more sustainability-focused consumers, I wanted to see how well they could navigate the world of food label certifications.
To test their knowledge, I showed them logos of various certification schemes and asked them to tell me what they meant.
Organic
The USDA Organic certification is regulated by the US government, and assures consumers that a given product is free of synthetic pesticides, herbicides, or fertilizers, and that it's free of genetically modified organisms (GMOs).
A 2019 survey suggests 75% of consumers recognize and understand the USDA organic label, making it the most recognizable of the food certifications.
Both the Millennial and Boomer recognized the label and could (more or less) describe its meaning. Gold star to both of them!
Non-GMO Project
In other countries, including all of the European Union, governments require genetically modified foods to be labeled. Although this is not the case in the US, things are (slowly) changing.
To receive Non-GMO certification, a product must contain less than 0.9% genetically modified (or engineered) organisms.
This is the second most well-known food certification with 64% of consumers recognizing it and understanding its meaning on the same 2019 survey.
Both the Millennial and Boomer understood the meaning of GMO although the Boomer was unsure of the context where it might be used. Still, gold star to both of them.
Fair Trade
Fair Trade standards incorporate a holistic blend of social, economic, and environmental criteria. They were designed to support small producer organizations and workers in developing countries.
Fair Trade products have an extra fee, known as a "premium," which is incorporated into the final price. This goes to a "premium fund" for the farmers/ workers who vote each year on how it will be spent.
Roughly 45% of consumers recognize the Fair Trade label and understand its meaning. Both the Millennial and Boomer did very well here, getting specific about some of the economic and social criteria within the standards. Gold stars for both of them!
Rainforest Alliance
This certification attempts to "drive more sustainable agricultural production and responsible supply chains."
Like Fair Trade, Rainforest Alliance standards are organized around social, economic, and environmental criteria although the two organizations follow a slightly different focus and approach.
When first launched, this certification didn't organize a farmer/ worker "premium fund" although this has recently changed. As of 2020, brands purchasing Rainforest Alliance-certified materials will pay a "Sustainability Differential" fee.
Only 36% of consumers recognize this label and understand its meaning. In keeping with this trend, neither the Millennial or Boomer had ever seen the Rainforest Alliance logo before and both guessed at it's meaning. Their answers were in the ballpark although, understandably, they assumed the certification had something to do with a focus on rainforests.
Testing Take-Aways
Our participating Boomer and Millennial did well in their quest to understand some of the more well-known food certifications. As a "thank you" for participating, and to help them on their journey to becoming more sustainability-conscious consumers, I pointed them towards this fantastic website explaining various food labels.
From our highly scientific data set of two people, we might conclude that other "sustainability-curious" consumers could also understand the broad aims and goals of different certification schemes if they too encountered them on products.
But understanding is only half the battle. Will consumers prioritize purchasing products with certain certifications?
In other words, do consumers have an appetite for one certification over another?
Here the data is less encouraging.
While consumers seem broadly inclined to choose products with certifications, they aren't especially loyal to a particular label or certification scheme.
In fact, although consumers might recognize and understand the above certifications, not many are "more likely" to buy a product as a result.
Conclusions
Consumers have a growing interest in shopping for sustainable products and supporting sustainable brands. A growing number of certification programs attempt to provide information to consumers about which products achieve certain sustainable and ethical standards. While many consumers may understand what these programs stand for, it seems unlikely that certifications alone will drive consumer behavior.
In the end, certification soup isn't especially appetizing, with 46% of consumers reporting there are "too many" sustainability certifications and seals.
With this in mind, how do sustainability-conscious companies decide which certifications are worth the effort?
How do they demonstrate their sustainability appeal to consumers?
Find out in Certification Compass, Part 2 of this series.
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