Abstract
In the last few decades, the interest of consumers towards sustainable agri-food products has been growing. This trend reflects changes in the consumption patterns, which have been deeply influenced by the increased sensitivity concerning social and environmental issues. In this sense, several studies, with different methodological approaches, have investigated consumers’ willingness to pay and its determinants for products with different sustainability labels. To systematise the obtained results, this paper offers a review of the studies that used experimental economics in studying consumer preferences for sustainable food and agricultural products. The 41 studies included in the review were selected on the basis of the pre-identified criterion according to the systematic review approach. Albeit discordant, the results show that a large share of consumers is willing to pay a premium price for products with eco-friendly and organic certifications. Animal welfare, ‘local’ production, or social certification appear to have a lower influence on consumer choice of purchasing. Additional information is able to modify consumer expectations and consequentially their willingness to pay, depending on the individual’s responsibility and awareness.
Generated Summary
This review article examines consumer preferences for sustainable agri-food products using experimental economics. The study focuses on the application of experimental economics in studying consumer preferences for sustainable food and agricultural products. The approach involves a systematic review of studies that utilize experimental economics, specifically focusing on consumer preferences for sustainable food and agricultural products. This methodological choice is motivated by the advantages that experimental economics approaches offer, such as a high degree of control and reproducibility. The review encompasses 41 studies, analyzing consumer preferences and willingness to pay (WTP) for products with various sustainability labels, including eco-friendly, organic, animal welfare, and social responsibility certifications. The methodologies used in these studies include experimental auctions and real choice experiments. The aim is to understand how consumers value and make purchasing decisions based on these attributes.
Key Findings & Statistics
- The review includes 41 studies that used experimental economics to study consumer preferences for sustainable food products.
- Most studies (54%) focused on environmental sustainability, with multiple attributes such as carbon footprint reduction and organic farming.
- 19% of the publications relied on social sustainability, considering animal welfare, social responsibility, and fair-trade certification.
- 20% of studies investigated attributes concerning more than one sustainability dimension (multi-dimensional sustainability).
- 7% of studies investigated the economic dimension of sustainability, analyzing consumer preferences for ‘local’ products.
- Approximately 63% of the studies concern the European Union countries.
- 29% of the papers were from North America.
- 86% of the studies used Vickrey auction and Becker, DeGroot, Marschak (BDM) procedure.
- On average, experimental auctions found that organic products have 32 to 80% higher bids than conventional products.
- In RCE, the estimated premium is significantly higher than the experimental auctions.
- Consumers’ WTP for products with animal welfare certification.
- Consumers tend to bid higher values for fresh products than non-perishable products.
- Consumers’ WTP for eco-friendly products are in a variable range from 13–50%.
- Consumers’ WTP for fair-trade coffee has increased subject to sensory acceptance after exposure to additional ethical information on the working conditions of operators.
Other Important Findings
- Consumers are willing to pay a premium price for products with eco-friendly and organic certifications.
- Animal welfare, ‘local’ production, or social certification appear to have a lower influence on consumer choice.
- Consumer expectations and WTP are modified by additional information, depending on individual responsibility and awareness.
- The presence of animal welfare certification shows consumers consider information on animal conditions as one of the main determinants of choice.
- Consumers show a higher WTP for products obtained by production methods respectful of animal welfare.
- The type of product considered influences WTP, with higher values for fresh products.
- Consumer expectations are influenced by additional indications on animal welfare standards, influencing WTP.
- Studies including taste tests reveal that taste is more important than ‘local’ attributes in determining consumer choice.
- The introduction of tasting tests confirms that providing information about animal welfare can be a major determinant of consumer WTP.
- Awareness about food safety and organic production positively influences WTP.
- Consumers are deeply influenced by information related to organic production methods.
- Information on organic foods and their environmental and health aspects can induce an increase in WTP.
- Studies show that providing additional information about sustainable production influences consumer choice.
Limitations Noted in the Document
- The review’s scope is limited by the number of studies included, which is fewer than in other comparable reviews.
- The review primarily includes experimental economics-based studies, which could have limited the scope.
- The focus on specific sustainability attributes, like animal welfare and ‘local’, might have weakened the related results.
- The classification based on sustainability attributes was preferred over the adoption of conceptual models.
- Further research is needed to study in different countries, using comparable non-hypothetical survey methods.
- The WTP premiums estimates need to be compared with producers’ additional costs for improved standards.
Conclusion
The analysis reveals that consumers are willing to pay a premium for products with sustainable attributes. The results show a preference for attributes linked to environmental requirements, such as eco-friendly or organic certifications, where consumers have a high degree of familiarity. The WTP for products with animal welfare, ‘local’ production, or social certification is lower and in some cases absent. However, without accompanying intrinsic attributes ensuring consumer satisfaction, these extrinsic attributes have no influence on WTP. The study also highlights the influence of information on consumer expectations, which are affected by additional indications, both positive and negative. The WTP moves in the direction of quality expectations induced by information treatments. The implications of this research suggest that providing consumers with verifiable and additional information on eco-friendly products can increase their WTP, while negative information can decrease it. However, the need to ensure high sensory quality in sustainable products is highlighted. The study emphasizes that taste continues to be a main factor affecting consumer choices for agri-food products. Further research should focus on providing information about sustainable production to help consumers make informed choices. The direction of quality expectations induced by information treatments, the effects, to an extent, depending on whether the individuals are sensitive to environmental, social, or ethical issues.