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Do consumers value nutritional labels?

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  • Maria L. Loureiro
  • Azucena Gracia
  • Rodolfo M. Nayga

Abstract

The European Union is contemplating making the provision of nutritional labels in food products mandatory. Using data collected from food shoppers, we assessed consumers' valuation of nutritional labels by analysing their willingness to pay a premium for a box of cookies with a nutritional label. On average, the mean willingness to pay (WTP) for a box of cookies with a nutritional label is estimated to be about 11 per cent above the price of the box of cookies without a nutritional label. Consistent with prior expectations, our results also indicate a difference between the WTP of individuals suffering from diet-related health problems (estimated mean 13 per cent) and those who do not suffer any diet-related health problems (estimated mean 9 per cent). Copyright 2006, Oxford University Press.

Suggested Citation

  • Maria L. Loureiro & Azucena Gracia & Rodolfo M. Nayga, 2006. "Do consumers value nutritional labels?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(2), pages 249-268, June.
  • Handle: RePEc:oup:erevae:v:33:y:2006:i:2:p:249-268
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    Cited by:

    1. Ran, Tao & Yue, Chengyan & Rihn, Alicia, 2015. "Are Grocery Shoppers of Households with Weight-Concerned Members Willing to Pay More for Nutrtional Information on Food?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), November.
    2. Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2008. "What to Choose? The Value of Label Claims to Fresh Produce Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), December.
    3. Berning, Joshua P. & Chouinard, Hayley H. & Manning, Kenneth C. & McCluskey, Jill J. & Sprott, David E., 2010. "Identifying consumer preferences for nutrition information on grocery store shelf labels," Food Policy, Elsevier, vol. 35(5), pages 429-436, October.
    4. Balcombe, Kelvin & Fraser, Iain & Falco, Salvatore Di, 2010. "Traffic lights and food choice: A choice experiment examining the relationship between nutritional food labels and price," Food Policy, Elsevier, vol. 35(3), pages 211-220, June.
    5. Birol, Ekin & Roy, Devesh & Torero, Maximo, 2010. "How safe is my food?: Assessing the effect of information and credible certification on consumer demand for food safety in developing countries," IFPRI discussion papers 1029, International Food Policy Research Institute (IFPRI).
    6. Nichele, Veronique & Soler, Louis-Georges, 2011. "Is voluntary nutritional labelling efficient? An analysis of the biscuits and cakes sector in France," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 109191, Agricultural and Applied Economics Association.
    7. Frédéric Salladarré & Dorothée Brécard & Sterenn Lucas & Pierrick Ollivier, 2016. "Are French consumers ready to pay a premium for eco-labeled seafood products? A contingent valuation estimation with heterogeneous anchoring," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 247-258, March.
    8. Azzurra Annunziata & Angela Mariani, 2016. "The role of nutritional labeling in promoting healthier food choices: a review of the major issues in the EU," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2016(2), pages 107-119.
    9. Yang, Shang-Ho & Woods, Timothy A., 2013. "Assessing Consumer Willingness to Pay for Ground Bison Given Nutrition Information," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143079, Southern Agricultural Economics Association.
    10. Stefanella Stranieri & Lucia Baldi & Alessandro Banterle, 2010. "Do Nutrition Claims Matter to Consumers? An Empirical Analysis Considering European Requirements," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 15-33.
    11. Elena Viganò & Gervasio Antonelli & Gian Italo Bischi & Fabio Tramontana, 2015. "Consumo e consumatori di prodotti alimentari nella società postmoderna," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 17(1), pages 59-80.
    12. Chang, Jae Bong & Moon, Wanki & Balasubramanian, Siva K., 2012. "Consumer valuation of health attributes for soy-based food: A choice modeling approach," Food Policy, Elsevier, vol. 37(3), pages 335-342.
    13. Tomas Philipson & Richard Posner, 2008. "Is the Obesity Epidemic a Public Health Problem? A Decade of Research on the Economics of Obesity," NBER Working Papers 14010, National Bureau of Economic Research, Inc.
    14. Kelvin Balcombe & Iain Fraser, 2009. "A General Treatment of Non-Response Data From Choice Experiments Using Logit Models," Studies in Economics 0916, School of Economics, University of Kent.
    15. Devesh Roy & Ekin Birol & Katharina Deffner & Bhushana Karandikar, 2010. "Developing Country Consumers’ Demand for Food Safety and Quality: Is Mumbai Ready for Certified and Organic Fruits?," Chapters,in: Choice Experiments in Developing Countries, chapter 15 Edward Elgar Publishing.
    16. Jeanty, Pierre Wilner & Hitzhusen, Frederick J., 2007. "Using stated preferences to estimate the environmental benefits of using biodiesel fuel in diesel engines," Biofuels, Food and Feed Tradeoffs, Biofuels, Food and Feed Tradeoffs Conference, April 12-13, 2007, St, Louis, Missouri 48773, Farm Foundation.
    17. Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2007. "What to Choose? The Value of Label Claims to Produce Consumers," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9704, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Andreas C. Drichoutis & Panagiotis Lazaridis & Rodolfo M. Nayga, 2009. "Would consumers value food-away-from-home products with nutritional labels?," Agribusiness, John Wiley & Sons, Ltd., vol. 25(4), pages 550-575.
    19. Kim, Hyeyoung & House, Lisa, 2012. "Impact of Added Sugar Information of Front-of-Pack Labels on Consumers’ Beverage Health Perception Changes," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124713, Agricultural and Applied Economics Association.

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