Subdimensions matter: Consumer preferences for water footprint information in environmental labels for food

Front-of-pack (FOP) environmental labels have long been used to encourage more sustainable food choices. The wide range of sustainability dimensions relevant to food production and consequently food consumption, has led to an increasing number of FOP labels aiming to provide consumers with sufficient sustainability-related information. Consequently, there is currently a discussion about whether subdimensions should be included as part of an overall sustainability label, or if only an overall score should be shown, as it is the case with the Nutri-Score. This study aims to close this research gap. Focussing on water usage in food production this study investigates consumer preferences for water footprint information as a subdimension of an environmental label compared to an environmental label with no subdimensions. A choice experiment was conducted in autumn 2024 with n=998 German consumers, representative of the German population in terms of gender, age and education. The results of the random parameter logit model show that consumers’ marginal utility is highest for an environmental label that includes a low water footprint subdimension. A sole environmental label as well as the environmental label showing a high water footprint have a negative effect on consumers’ purchasing decisions. The study contributes to the scientific discourse on label design and information provision to facilitate sustainable choices. Additionally, practical recommendations can be derived regarding the importance of water footprint information in consumers’ food purchasing process.