Do Consumers Value Nutritional Labels?

Posted: 29 Feb 2008

See all articles by Maria L. Loureiro

Maria L. Loureiro

Istituto Universitario de Estudos e Desenvolvemento de Galicia (IDEGA), Universidade de Santiago de Compostela

Azucena Gracia

affiliation not provided to SSRN

Rodolfo M. Nayga

Texas A&M University - Department of Agricultural Economics

Date Written: June 2006

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).

Keywords: Europe, nutritional label, mandatory, consumers, WTP, processed food

Suggested Citation

Loureiro, Maria L. and Gracia, Azucena and Nayga, Rodolfo M., Do Consumers Value Nutritional Labels? (June 2006). European Review of Agricultural Economics, Vol. 33, Issue 2, pp. 249-268, 2006. Available at SSRN: https://ssrn.com/abstract=914823 or http://dx.doi.org/10.1093/erae/jbl005

Maria L. Loureiro (Contact Author)

Istituto Universitario de Estudos e Desenvolvemento de Galicia (IDEGA), Universidade de Santiago de Compostela ( email )

Complejo Docente - Campus Universitario de Lugo
Lugo, A Coruña 15704
Spain

Azucena Gracia

affiliation not provided to SSRN

No Address Available

Rodolfo M. Nayga

Texas A&M University - Department of Agricultural Economics ( email )

College Station, TX 77843
United States
979-845-8376 (Phone)

HOME PAGE: http://agecon2.tamu.edu/people/faculty/nayga-rudy/

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