2013: Proliferation of food eco-labels to continue

The number of eco-labels in the food industry is expected to continue to proliferate in 2013. Over 200 seals and logos represent some ecological, ethical, ingredient or sustainability attributes in the global food industry. Organic Monitor finds the mushrooming number of eco-labels could have adverse consequences.
 

The majority of eco-labels in the food industry are for organic products, which are made according to the most sustainable form of agriculture. Organic products comprise the bulk of the estimated US $75 billion (about EUR 56 billion) eco-labeled food and drink market. Most sales are from Europe and North America which have legally protected organic logos. However, many new organic labels are being introduced in Asia, Latin America and other regions. The lack of harmonisation between these standards is leading to multiple certifications and an exponential rise in organic eco-labels. Over 84 countries have introduced national standards for organic products, with most having separate organic labels.

The global fair trade movement – once united by Fairtrade International (FLO) – is also fragmenting. The departure of Fair Trade USA from the umbrella organisation and growing number of new fair trade schemes are increasing the number of fair trade logos and symbols. Although the Fair Trade mark of FLO is the most evident, it is no longer the single identification label for certified fair trade products. Rainforest Alliance and UTZ Certified have well-established eco-labels for agricultural commodities, such as coffee, tea and cocoa. However, new schemes are gaining popularity for such commodities; they include Bird Friendly Coffee and Starbuck’s Coffee and Farmer Equity (CAFE) practices. Eco-labels are also becoming visible in other product groups; examples are Marine Stewardship Council for sustainable seafood and Certified Humane for meat products. Concerns about genetically engineered foods have made the Non-GMO Project Verified seal the fastest growing eco-label in the USA food industry.
 
As will be shown at the Sustainable Foods Summit, certified product sales reached US $2.4 billion (about EUR 1.8 billion) in 2011. The voluntary labeling scheme is predicted to gain in popularity whilst the pro-labeling movement continues to fight for mandatory labeling of genetically engineered foods. Resource eco-labels are also making headway in the food industry. Many carbon-labeling schemes have been introduced, whilst companies like the Raisio Group are experimenting with water footprint labels. Major challenges for such eco-labels are standardisation of methodologies and consumer communications.

Growing consumer awareness of food production methods and sustainability issues has been responsible for the rise of eco-labels in the food industry. With the number and types of eco-labels proliferating, there is a concern that food producers could be discouraged to adopt eco-labels because of the growing disparity between standards and multiple certification costs. A larger concern is the effect on consumers: how can consumers distinguish between the growing number of logos and seals of organic / fairtrade products, as well as differentiate them between other eco-labels? With most ecolabels representing some ethical or sustainability attributes, a wider question is whether a new umbrella eco-label will eventually emerge and unify existing ones.

Organic Monitor will be presenting its latest findings on the global market for ecolabeled food & drink at the upcoming Sustainable Foods Summit. The latest market data on the organic, fair trade, and eco-labeled products market will be presented, as well as future growth projections. Leading organisations involved in eco-labeling and organic certification will also be participating at the summit; they include Ecocert, FLO, Fair Trade USA, Rainforest Alliance, NSF International, Control Union, Oregon Tilth, Demeter USA, Certified Humane, Bird Friendly Coffee, Food Alliance, Carbon Free, Non-GMO Project Verified, etc.
 

Organised by Organic Monitor, the aim of the Sustainable Foods Summit is to explore new horizons for eco-labels and sustainability in the food industry by discussing key industry issues in a high level forum. The North American edition will be hosted at the Ritz-Carlton hotel in San Francisco on 22-23 January 2013, whilst the European edition will be hosted in Amsterdam on 6-7 June 2013. More information is available from www.sustainablefoodssummit.com