Market implications of new regulations: impact of health and nutrition information on consumer choice

Abstract

Consumer concern for health impacts of diet has increased the use of nutritional information and claims by agro-food industry. Under the current European legislation on nutrition and health claims and on nutritional labelling, three type of nutritional information can be provided on food products: nutritional facts panel, nutritional claims and health claims. In this context, the aim of the paper is to assess how much consumers' value the provision of three types of nutritional information in a meat product not precisely perceived as healthy, "pork Frankfurt sausages", using a choice experiment. The data comes from a survey conducted in two Spanish medium size towns (Zaragoza and Córdoba) during 2007. A mixed logit model is used to estimate the effect of the nutrition information attributes on consumers' utility and derive their willingness to pay. Results show that all three nutritional and health information items are valued by consumers, although preferences are heterogeneous. Health claims are significantly higher valued than nutritional attributes (facts panel or claim). Estimated market shares show that the use of any of the available labelling options will obtain significant market success even at prices including premiums above current price levels.