Consumer Preferences Toward Local Versus Carbon: A Study of Value‐Added Dairy Products

ABSTRACT The growing emphasis on local sourcing and sustainability is reshaping consumer preferences in the food industry. This study investigates how consumers evaluate value‐added dairy products by examining the interplay between local branding and environmental impact. Using a mixed logit model and segmentation analysis, we explore consumer responses to various local labels, including “Kentucky Proud,” “Made with Kentucky Milk,” and “Produced within 100 miles,” as well as carbon footprint metrics. Our findings reveal a strong preference for state‐affiliated labels like “Kentucky Proud” over geographic proximity labels, potentially pointing to the influence of state boundaries on consumer decision‐making. Furthermore, we identify six distinct consumer segments, each characterized by unique priorities regarding local identity and environmental sustainability. These insights provide practical strategies for marketers to promote locally produced, environmentally friendly dairy products, emphasizing the need for integrated labeling approaches that resonate with diverse consumer priorities.