Bundling Food Labels: What Role Could the Labels “Organic”, “Local” and “Low Fat” Play in Fostering the Demand for Animal-Friendly Meat

This study investigates whether and how the demand for animal-friendly pork can benefit from the individual and joint use of the label "Animal Friendly", "Organic", "Local", and "Low Fat". A choice experiment was conducted to collect the data. The data were analysed using the random parameter logit and the latent class models. Three consumer segments were identified. Consumers in segment 1 ("pro-welfare consumers – 39% of all respondents) were found to highly value the four labels. The results showed that their price premium for animal-friendly pork could be increased significantly if the product is also labelled as "Local" or "Low Fat". The members of segment 2 ("Welfare-reluctant consumers – 41% of all respondents) were found to negatively value the use of the label "Animal Friendly". For "welfare-reluctant" consumers, label bundling is of marginal effect. The remaining 20% of respondents ("Indifferent" consumers”) were found to be indifferent to whether the labels "Animal Friendly", "Organic", and "Local" are used or not. However, their demand for animal-friendly pork could significantly increase if the pork is also labelled as "Organic".