Washington, D.C.—A survey from the Organic Trade Association (OTA), in partnership with Euromonitor International, shows Millennials and Gen Z buy the most organic, with both generations taking notice of the benefits of organic products on personal health and nutrition. More than 2,500 consumers nationwide were surveyed in October 2024 in the “Consumer Perception of USDA Organic and Competing Label Claims.” Survey questions related to organic shopping habits, ranging from familiarity with organic and other food label claims, priorities in making food choices, purchase frequency, and willingness to spend extra for products with an organic label.
Price is Important, But Not a Dealbreaker
While sustainability and recycled products have shown importance to customers in the past, the study determined personal health was prioritized over environmental health. This seems to be driving the price point, particularly for younger shoppers, in the $70 billion organic market. While older demographics are concerned about the price point, the Gen Z generation is willing to spend more for health-conscious products. Almost 90% of consumers surveyed in the Gen Z age range admitted to being committed to or new consumers of organic. Still, there is a growing interest among consumers to understand social and environmental impacts.
“There’s lots of good news in this report: younger consumers are embracing organic; consumers of all ages value the Organic label more than any other food label or claim,” said Tom Chapman, Co-CEO of the OTA. “The challenge to the organic sector is to demonstrate the distinct value of the USDA Organic label and break through the noise of all the other health, nutrition and sustainability claims in the marketplace.”
Consumers Need More Education
Another area that is important to consumers is food quality and health. While basic claims like organic and natural are familiar, products that are “free-from” or offer single attribute claims are even better! This includes free from toxic pesticides and chemicals, non-GMO, and produced without synthetic hormones or heavy use of antibiotics. These claims are encouraging shoppers to put these products in their cart!
Products with the USDA Organic label seem to have earned the trust of consumers as it is the most trusted by all age groups and is equivalent to health for most shoppers. Yet the study also showed consumers seem to not understand the label meets the “free-form” standard. In order to meet requirements upheld by the government, the USDA Organic label means that products are banned from using toxic pesticides, synthetic nitrogen fertilizers, antibiotics, synthetic hormones, and GMO’s.
"This latest survey shows a great opportunity for organic,” said Matthew Dillon, Co-CEO of OTA. “Today’s younger consumers who are driving organic’s growth pay close attention to claims and want to know more about the products they’re buying. At times they don’t realize that organic encompasses the single attribute claims they value, like no antibiotics or growth hormones. We have an opening here to educate consumers, about the broad sweep of value and the attributes organic offers.”
Consumers also are confused on the definition of regenerative agriculture, with 40% of participants said they were unsure of what the label means. Perhaps because its not resonating, only 10 percent of individuals surveyed said they are willing to pay more for items labeled regenerative.
The survey asked consumers their familiarity with 11 different food and beverage claims, including regenerative. The top 3 most familiar were organic, local, and natural. 90 percent expressed an understanding of organic.
What This Means for Shopping Habits
Younger shoppers are closely looking at labels and ingredients. Over 66% of those surveyed look for the USDA Organic label in almost every food purchase. Foods like fruit, vegetables, eggs, dairy, meat/poultry, and baby food were most likely to be purchased organic. According to the report, more than half of Americans bought an organic fruit or vegetable in the past year. Bread was the most sought after in the past six months, with 27% of consumers opting for organic bread. In the baby food category, 93 percent of participants said they select organic.
“In just a little over two decades, the USDA Organic label has earned deep trust among consumers and has become one of the most identifiable food labels in our grocery stores,” said OTA’s Dillon. “The Gen Z consumer is now making its presence known, and this survey shows it puts a high value on organic. By continuing to reach out to this generation, and to all consumers, organic can establish a foundation for sustained growth across future generations.”
