The Truth About Green Labels: How Consumers Perceive Sustainability Claims on Food

The OECD study explores how consumers across 40 countries interact with sustainability claims on food, highlighting key factors like affordability, trust, and label confusion. While interest in eco-labeled products is growing, barriers such as high prices and skepticism limit widespread adoption.

A major study conducted by the Organisation for Economic Co-operation and Development (OECD) in collaboration with the Toulouse School of Economics and other leading institutions examines how consumers interact with environmental sustainability claims on food. Surveying 37,000 consumers across 40 countries, the research sheds light on the growing role of eco-labels, trust in sustainability claims, and key factors influencing purchasing decisions. The findings reveal that while consumer interest in sustainable food is rising, significant barriers such as affordability, confusion over labels, and trust issues prevent wider adoption. With sustainability becoming a crucial aspect of global food systems, the report provides valuable insights into how businesses, policymakers, and certification bodies can enhance consumer engagement with eco-friendly products.

What Consumers Want: Organic, Natural, and Local Labels Lead the Way

Consumers show the highest interest in sustainability claims such as natural, organic, eco-friendly, and locally produced food. However, despite widespread recognition, these labels remain a relatively small part of the overall food market. The study finds that organic claims are particularly prevalent in European countries like France and Italy, whereas natural labels dominate in English-speaking nations such as the United States, Canada, and Australia. However, even in markets where these labels are popular, their share rarely exceeds 10% of food products.

Interestingly, different food categories see varying levels of sustainability claims. Sweet spreads, plant-based dairy, breakfast cereals, and baby food are among the most commonly labeled sustainable products, whereas meat, seafood, and processed foods have fewer eco-labels. The study also highlights the rise of new sustainability certifications, such as carbon-neutral labels, which are gaining traction in markets like Japan. However, consumers often struggle to differentiate between various claims, limiting their effectiveness in driving more sustainable consumption.

The Biggest Barrier: Affordability vs. Sustainability

The high price of sustainable food remains the biggest obstacle to widespread adoption. While many consumers express a willingness to pay extra for eco-friendly products, this does not always translate into actual purchases. Price-sensitive consumers frequently prioritize affordability, taste, and convenience over sustainability. The issue is particularly evident in developing economies, where disposable income is lower, but even in wealthier countries, price remains a crucial factor in food choices.

Beyond affordability, confusion over sustainability claims adds another layer of complexity. The study finds that consumers often misinterpret labels, with many believing that natural and organic are interchangeable terms—despite organic being a strictly regulated standard in many regions, whereas natural claims are often unregulated. This lack of clarity creates skepticism, reducing consumer confidence in sustainability labels. Moreover, many consumers are unsure which sustainability features to look for, making them less likely to actively seek out eco-labeled products.

Trust in Sustainability Labels: A Critical Factor

Consumer trust plays a significant role in shaping purchasing behavior. The study finds that trust in different sustainability claims is highly correlated within countries—meaning that nations where people trust organic labels also tend to trust eco-friendly and local food claims, whereas distrust in one type of label often extends to others. Countries such as Sweden, the Netherlands, and Italy report higher trust levels, whereas skepticism is more common in Germany, Belgium, and Japan.

A notable finding is that general trust in institutions influences trust in sustainability labels. Consumers who trust government regulations, independent certification bodies, and food safety authorities are more likely to believe in sustainability claims. In contrast, in countries where public confidence in regulatory bodies is low, consumers remain highly skeptical of sustainability labels—even if those labels have strong scientific backing. This finding suggests that building stronger regulatory frameworks and clearer labeling guidelines can play a vital role in increasing consumer trust in eco-labeled products.

Consumer Trends and Regional Differences

The study highlights significant regional variations in consumer attitudes toward sustainability claims. India stands out as a country where consumer interest in eco-friendly products is high, yet actual purchases remain low due to price concerns and limited awareness. In contrast, Japan reports low engagement with sustainability labels, with consumers focusing more on food safety and quality rather than environmental impact. Meanwhile, European consumers exhibit higher willingness to pay for eco-labeled products, though affordability remains a key consideration.

Market trends indicate that sustainability-labeled products are growing faster than conventional ones, particularly in Western markets. This suggests that while sustainability labels currently have a limited market share, their influence is increasing. Online shopping and digital commerce have also played a role in boosting eco-label visibility, as consumers can access detailed product information that helps them make more informed choices.

The Future of Sustainable Food: Challenges and Opportunities

The study underscores that while sustainability claims have the potential to influence consumer behavior, their impact is constrained by economic, psychological, and cultural factors. Price remains the most significant barrier, followed by confusion over labels and lack of trust in certification schemes. Additionally, demographic and socioeconomic factors play a role, with higher-income and more educated consumers displaying a stronger inclination toward eco-labeled products.

To enhance engagement with sustainability claims, the report recommends several key actions. Improving regulatory oversight, simplifying labels, and educating consumers about the meaning of eco-labels can help address confusion. Businesses can also increase affordability by exploring cost-effective sustainable production methods. Governments and regulatory bodies should strengthen transparency around sustainability certifications to foster greater trust.

Ultimately, while sustainable food choices remain a niche segment today, shifting consumer preferences and growing awareness of environmental issues indicate that eco-labels will become an increasingly important part of the global food market. By addressing barriers related to affordability, trust, and labeling transparency, stakeholders across the food industry can encourage greater consumer participation in sustainable consumption, leading to a more environmentally responsible future for food systems worldwide.