Signaling sustainability: Do Canadian consumers prefer broad or narrow food sustainability labels?

Abstract

Sustainability labeling has been increasingly integrated into many food product labels in response to consumer interest in purchasing sustainably produced food. While a product label may contain the phrase “sustainably produced”, little additional information is available to consumers regarding how sustainability has been enhanced, or the dimensions of sustainability encompassed by the label. Using data from a survey of 1416 Canadian consumers, we examine consumer perceptions of sustainability and preferences for broad versus narrow sustainability claims across several contexts, including the dimensions of sustainability and the scope of a sustainability standard with respect to compliance criteria, product coverage, and geographical coverage. We find low levels of consumer knowledge and understanding of sustainability labeling, heterogeneity with respect to which dimension of sustainability appeals to different types of consumers, and a general preference for broad over narrowly defined sustainability labels, particularly with respect to the scope of criteria encompassed by the label. Our findings suggest some confusion as to what constitutes sustainability in the context of agri-food, but that broader, more encompassing labels are likely to gain more traction with consumers.