Boosting market appeal: Exploring the impact of nutritional claims on popular Italian dietary cereal product

Abstract

This study examines the intricate interplay between nutritional claims and consumer purchasing behaviour in the Italian rusk market. Rusks, obtained by double baking sliced loaf bread, are a staple of the Italian breakfast, generating annual revenues of EUR 225 million. With the growing focus on more health-conscious food choices, expecially after COVID-19, health-related claims on food labels have a greater impact on consumers. Utilizing the hedonic pricing method, the study decomposed rusk market value based on specific product characteristics, revealing how quality attributes and nutritional aspect influence price. Data collected from major retail chains yielded 1438 observations, showing a positive correlation between price and factors such as brand, format, ingredients formulations and nutritional or sustainability claims. Results show that among analyzed regulated nutritional claims: "no added sugars," "high in protein," and "low salt content" exhibit the highest premium price, highlighting consumers' willingness to pay more for products perceived as healthy, as well as for enriched products or those made with alternative flours. Conversely, in a very heterogeneous context and a highly competitive market, reduced ingredient formulations and traditional recipes result in discount prices. The research demonstrates that clear and transparent health-related communication promotes informed purchases. This study suggests that producers adopting differentiation strategies focused on nutritional quality and the use of food claims can enhance product appeal and positively influence consumer purchasing decisions, thereby increasing their market share in a dynamic market.