Consumer Preferences and Willingness to Pay for Food Labeling: A Discussion of Empirical Studies

We discuss empirical research on consumer preferences and willingness to pay for several types of food quality or attribute labeling. The selected categories we include are eco-labels, GM food labels, U.S. state agricultural-product labels and European Protected Geographical Indication labels, BSE-tested-beef labels, and “Fair Trade” labels. We discuss generalizations that can be drawn from the studies as a group. Most importantly, we find that consumers must perceive high quality in order for the food product to command a premium. Furthermore, the perception of quality may sometimes differ across consumers.