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Ethical Appetite: Consumer Preferences and Price Premiums for Animal Welfare-Friendly Food Products

2025/05/07 by Voraprapa Nakavachara, Nakavachara, Voraprapa, Chanon Thongtai +5
Agricultural and Biological Sciences · Business, Management and Accounting · Environmental Science · #Agriculture Sustainability and Environmental Impact #Environmental Sustainability in Business #FOS: Economics and business #General Economics (econ.GN) #Organic Food and Agriculture

paper · pdf · doi:10.48550/arxiv.2505.04042

openalex publication_date 2025/05/07 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

This study examines how consumer attitudes toward animal welfare influence food selection and pricing using real-world market data from a Swiss supermarket. Our findings indicate that higher animal welfare standards are consistently associated with higher prices, suggesting that ethical considerations play a significant role in generating price premiums based on consumer preferences. On average, a one-point increase in the animal welfare score (ranging from 1 to 5, with 5 being the highest) corresponds to a 16.4% price increase, with the effect being most pronounced in Dairy & Eggs (25.3%), compared to Meat & Fish (14.3%). These results highlight the psychological and behavioral factors underlying consumer preferences for ethically produced foods. Additionally, we find limited evidence of a price premium for climate-friendly food products, observed only in Yogurts & Desserts, a subcategory within Dairy & Eggs. Our findings contribute to the understanding of how ethical food attributes influence consumer decision-making and pricing in retail settings.

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