What Makes ESG Labels Matter? Consumer Preferences and Willingness to Pay in China's FMCG Market

As environmental, social, and governance (ESG) information increasingly reaches consumers through certifications, labels, and package claims, it remains unclear whether such information translates into measurable preferences and willingness to pay (WTP). Focusing on Chin's fast-moving consumer goods (FMCG) market, this study examines consumer preferences, willingness to pay, and preference heterogeneity for ESG labels in two product categories: bottled drinks and shampoo. A discrete choice experiment is employed, and the data are analyzed using multinomial logit (MNL), random parameters logit (RPL), and latent class logit (LCL) models to estimate the marginal utilities of ESG labels across product contexts and consumer segments. The results show that consumers generally exhibit positive preferences for ESG labels and make meaningful trade-offs between label attributes and price, while substantial heterogeneity exists across labels, product categories, and consumer segments. Among the tested labels, ISO Certification shows the strongest and most consistent positive effect across both product categories and is associated with the highest WTP. The findings highlight differences in the valuation of specific ESG-related cues across product contexts and consumer groups, suggesting that how such information reaches consumers warrants attention alongside its ESG dimension.