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On Consumers' Valuation Of Nutrition Information

Author

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  • Andreas C. Drichoutis
  • Panagiotis Lazaridis
  • Rodolfo M. Nayga Jr

Abstract

The European Union (EU) is contemplating regulations requiring mandatory provision of nutritional information on food products. This study analyses consumers' valuation of nutritional information using data collected from a field survey. The results generally suggest that consumers value and are willing to pay about 5.9 percent of the original price for nutritional information on the food product we studied. Individuals who are non‐price‐sensitive, nutritionally knowledgeable and with longer time horizon are willing to pay more for nutritional information than others. Considering consumers' willingness to pay for nutritional information on food products and an EU impact assessment study, the costs of provision of this information are not prohibitive to firms. We estimate that the least conservative cost of labelling to the firm for a specific food product can be as much as €29,431, whereas the average economic value of nutrition information is estimated at €17,064. The firm can therefore recoup the associated costs in less than two months.

Suggested Citation

  • Andreas C. Drichoutis & Panagiotis Lazaridis & Rodolfo M. Nayga Jr, 2009. "On Consumers' Valuation Of Nutrition Information," Bulletin of Economic Research, Wiley Blackwell, vol. 61(3), pages 223-247, July.
    • Handle: RePEc:bla:buecrs:v:61:y:2009:i:3:p:223-247
    DOI: 10.1111/j.1467-8586.2009.00303.x
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    1. Bonanno, Alessandro & Bimbo, Francesco & Cleary, Rebecca & Castellari, Elena, 2018. "Food labels and adult BMI in Italy – An unconditional quantile regression approach," Food Policy, Elsevier, vol. 74(C), pages 199-211.
    2. Cho, Sungju & Lee, Sanghyeon, 2016. "Multilevel Analysis On Mother’S Nutrition Label Use And Children’S Propensity For Being Overweight," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 39(Special, ), pages 1-24, December.
    3. Cavaliere, Alessia & De Marchi, Elisa & Banterle, Alessandro, 2013. "Time Preference and Health: The Problem of Obesity," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164754, International European Forum on System Dynamics and Innovation in Food Networks.
    4. Stachtiaris, Spiros & Drichoutis, Andreas C. & Klonaris, Stathis, 2011. "The "more is less" phenomenon in Contingent and Inferred valuation," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116013, European Association of Agricultural Economists.
    5. Wu, Linhai & Wang, Shuxian & Zhu, Dian & Hu, Wuyang & Wang, Hongsha, 2015. "Chinese consumers’ preferences and willingness to pay for traceable food quality and safety attributes: The case of pork," China Economic Review, Elsevier, vol. 35(C), pages 121-136.
    6. 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.
    7. Xiaoke Yang & Yuanhao Huang & Mengzhu Han & Xiaoting Wen & Qiuqin Zheng & Qian Chen & Qiuhua Chen, 2021. "The Differential Effects of Physical Activity Calorie Equivalent Labeling on Consumer Preferences for Healthy and Unhealthy Food Products: Evidence from a Choice Experiment," IJERPH, MDPI, vol. 18(4), pages 1-16, February.
    8. Cavaliere, Alessia & De Marchi, Elisa & Banterle, Alessandro, 2014. "Does Consumer Time Preference Affect Label Use?," 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 199401, International European Forum on System Dynamics and Innovation in Food Networks.
    9. Julieta Alejandra Rodriguez & Elsa Mirta Margarita Rodr?guez & Beatriz Lup?n, 2020. "Consumers? assessment of labelled and packaged fresh potato: Evidence from Experimental Auctions," Economia agro-alimentare, FrancoAngeli Editore, vol. 22(3), pages 1-19.
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    11. Melo, Grace & Zhen, Chen, 2017. "The Impact of NuVal Shelf Nutrition Labels on Consumption: Evidence from Cold Cereal Purchases," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252442, Southern Agricultural Economics Association.
    12. 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.
    13. 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.
    14. Cavaliere, Alessia & De Marchi, Elisa & Banterle, Alessandro, 2015. "Information based food policy: is nutritional label the right instrument for everyone?," 2015 Conference, August 9-14, 2015, Milan, Italy 211399, International Association of Agricultural Economists.
    15. Caputo, Vincenzina & Scarpa, Riccardo & Nayga, Rodolfo M. & Ortega, David L., 2018. "Are preferences for food quality attributes really normally distributed? An analysis using flexible mixing distributions," Journal of choice modelling, Elsevier, vol. 28(C), pages 10-27.
    16. Bi, Xiang & House, Lisa & Gao, Zhifeng, 2014. "Can Nutrition and Health Information Increase Demand for Seafood among Parents? Evidence from a Choice Experiment," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170266, Agricultural and Applied Economics Association.

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