Italian Consumer Willingness to Pay for Agri-Food Sustainable Certification Labels: The Role of Sociodemographic Factors

Studying consumers' willingness to pay (WTP) for sustainable certification labels and preferences in consumption is a relevant issue for policymakers. Several studies have revealed a positive WTP a premium price for many certified products. The aim of this paper is to assess an overview of Italian consumers' WTP for eight different sustainable certification labels and to collect information about their consumption preferences and perceptions in consumption. Participants were selected by stratified simple random sampling, using regional distribution, gender, and age as stratification criteria, to obtain a representative sample of N=3600. Eight ordered logit models were estimated to understand how consumer socio-demographic characteristics influence the price premium. The results show important differences in WTP among different certification labels; a higher WTP emerged for ethical certifications than for environmentally focused labels. Younger individuals, women, those with higher education, income, and life satisfaction, as well as consumers in Southern regions, were significantly more willing to pay premiums for certified products. However, a key finding for policymakers is that the stated price premium consumers are willing to pay falls significantly short of the actual higher costs of these products in supermarkets. Furthermore, insights into consumer perceptions and preferences revealed that quality and origin are perceived as key price drivers, while method of production holds less importance. It also emerged that consumers primarily seek a balance between quality and price, with only a small segment prioritizing certified products.