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Impact of private labels and information campaigns onorganic and fair trade food demand

Author

Listed:
  • Douadia Bougherara

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)

  • Carole Ropars-Collet

    (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Jude Saint-Gilles

    (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

We use two Almost Ideal Demand Systems models on scanner data to analyse the demand for two food products (milk and coffee). Each demand system is composed of four products varying in the presence of an ecolabel (with or without) and the brand (national brand vs private label). First, we aim to compare the demand for PL and NB ecolabeled products. While PLs are brands owned and controlled by retailers and specific to eachretailer, NBs are owned and controlled by manufacturers and can be offered by several retailers. Second, we aim to assess the impact of information campaigns designed to raise awareness and knowledge of ecolabels. We find that demand is more elastic for ecolabeled goods as in the literature but we find this result only for NB goods (milk and coffee) and not for PL goods. We also find substitutability between ecolabeled and conventional goods as in the literature but only within the NB goods (milk only) and within the PL goods (milk and coffee). We also find complementarity between NB conventional and PL ecolabeled goods (milk and coffee). Finally, we find that information campaigns increase the predicted expenditure shares of PL organic milk by 33% and of NB fair trade coffee by 50%. But these effects are non-lasting.

Suggested Citation

  • Douadia Bougherara & Carole Ropars-Collet & Jude Saint-Gilles, 2022. "Impact of private labels and information campaigns onorganic and fair trade food demand," Post-Print hal-02769536, HAL.
    • Handle: RePEc:hal:journl:hal-02769536
    DOI: 10.1515/jafio-2019-0018
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    2. Schulze, Christoph & Matzdorf, Bettina & Rommel, Jens & Czajkowski, Mikołaj & García-Llorente, Marina & Gutiérrez-Briceño, Inés & Larsson, Lina & Zagórska, Katarzyna & Zawadzki, Wojciech, 2024. "Between farms and forks: Food industry perspectives on the future of EU food labelling," Ecological Economics, Elsevier, vol. 217(C).
    3. Jessica Bosseaux & Kelvin Balcombe & Philippe Aurier, 2024. "Impact of European egg marking system in France: empirical time series analysis between 2017 and 2022," Review of Agricultural, Food and Environmental Studies, Springer, vol. 105(2), pages 229-250, November.

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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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