On consumers' valuation of nutrition information

Andreas C. Drichoutis, Panagiotis Lazaridis, Rodolfo M. Nayga

Research output: Contribution to journalArticle

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.

Original languageEnglish
Pages (from-to)223-247
Number of pages25
JournalBulletin of Economic Research
Volume61
Issue number3
DOIs
Publication statusPublished - 2009 Jul 9
Externally publishedYes

Fingerprint

Nutrition
Food products
Costs
European Union
Labeling
Time horizon
Consumer value
Economic value
Willingness-to-pay
Impact assessment

Keywords

  • Nutrition information
  • Nutritional labels
  • Payment card
  • Willingness to pay

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

On consumers' valuation of nutrition information. / Drichoutis, Andreas C.; Lazaridis, Panagiotis; Nayga, Rodolfo M.

In: Bulletin of Economic Research, Vol. 61, No. 3, 09.07.2009, p. 223-247.

Research output: Contribution to journalArticle

Drichoutis, Andreas C. ; Lazaridis, Panagiotis ; Nayga, Rodolfo M. / On consumers' valuation of nutrition information. In: Bulletin of Economic Research. 2009 ; Vol. 61, No. 3. pp. 223-247.
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