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Ethical Appetite: Consumer Preferences and Price Premiums for Animal Welfare-Friendly Food Products

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  • Voraprapa Nakavachara
  • Chanon Thongtai
  • Thanarat Chalidabhongse
  • Chanathip Pharino

Abstract

This study examines how consumer attitudes toward animal welfare influence food selection and pricing using real-world market data from a Swiss supermarket. Our findings indicate that higher animal welfare standards are consistently associated with higher prices, suggesting that ethical considerations play a significant role in generating price premiums based on consumer preferences. On average, a one-point increase in the animal welfare score (ranging from 1 to 5, with 5 being the highest) corresponds to a 16.4% price increase, with the effect being most pronounced in Dairy & Eggs (25.3%), compared to Meat & Fish (14.3%). These results highlight the psychological and behavioral factors underlying consumer preferences for ethically produced foods. Additionally, we find limited evidence of a price premium for climate-friendly food products, observed only in Yogurts & Desserts, a subcategory within Dairy & Eggs. Our findings contribute to the understanding of how ethical food attributes influence consumer decision-making and pricing in retail settings.

Suggested Citation

  • Voraprapa Nakavachara & Chanon Thongtai & Thanarat Chalidabhongse & Chanathip Pharino, 2025. "Ethical Appetite: Consumer Preferences and Price Premiums for Animal Welfare-Friendly Food Products," Papers 2505.04042, arXiv.org.
    • Handle: RePEc:arx:papers:2505.04042
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    References listed on IDEAS

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    1. Falk, Armin & Boneva, Teodora & Chopra, Felix, 2021. "Fighting Climate Change: the Role of Norms, Preferences, and Moral Values," CEPR Discussion Papers 16343, C.E.P.R. Discussion Papers.
    2. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
    3. Sebastián Araya & Andrés Elberg & Carlos Noton & Daniel Schwartz, 2022. "Identifying Food Labeling Effects on Consumer Behavior," Marketing Science, INFORMS, vol. 41(5), pages 982-1003, September.
    4. Gorton, Matthew & Yeh, Ching-Hua & Chatzopoulou, Elena & White, John & Tocco, Barbara & Hubbard, Carmen & Hallam, Fiona, 2023. "Consumers' willingness to pay for an animal welfare food label," Ecological Economics, Elsevier, vol. 209(C).
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