Abstract
Diets in Mexico, like many countries, have changed dramatically in recent decades, with increased consumption of processed foods being a major factor. Research suggests that unhealthy diets in low-income communities reflect limited access to healthy foods, combined with high costs and limited knowledge. Weak demand signals from these communities likely disincentivise the food industry from delivering healthier, often costlier, options. This paper explores the potential to market healthy processed foods to these areas. We elicited willingness to pay (WTP) for healthier but relatively more expensive processed foods in low-income communities of Mexico City. We implemented a BDM mechanism to elicit WTP, with half of the participants randomly receiving information regarding nutritional content and health benefits. Results suggested that WTP was considerable among low-income groups but higher among higher-income groups within these communities. While, in general, providing nutrition and health information did not influence WTP, it was effective for those with strong preferences for the processed food category used in the study. WTP was highest among females and younger consumers, those who had a small family and children below 12 years in the household.
Highlights
Much of the world has experienced a nutrition transition characterised by strong shifts from traditional diets composed of whole foods to a “Western diet” rich in saturated fats, added sugars and salt, and processed foods (Ford, Patel, & VenkatNarayan, 2017; Popkin & Gordon-Larsen, 2004)
The role of nutrition and health information provision Before eliciting willingness to pay (WTP), we provided a random selection of participants with facts about fat, sugar and whole grains content, as well as about prevention of health risks
We found that informa tion effectively increased WTP for the latter group, which we expect to have the highest consumption of packaged bread
Summary
Much of the world has experienced a nutrition transition characterised by strong shifts from traditional diets composed of whole foods (e.g., legumes, fruits and vegetables, whole grains) to a “Western diet” rich in saturated fats (especially from animal sources), added sugars and salt, and processed foods (Ford, Patel, & VenkatNarayan, 2017; Popkin & Gordon-Larsen, 2004). Factors influencing the growth of overweight and obesity are linked to food systems transformations, which were facilitated by five major drivers: income growth, policy liberalisation, infrastructure improvement, ur banisation and the rise of rural nonfarm employment (Popkin & Rear don, 2018) Despite these challenges, research on urban consumer food preferences in these countries remains relatively scarce (Blare, Donovan, & del Pozo, 2017). Budget constraints (Bai, Alemu, Block, Headey, & Masters, 2020; Waterlander et al, 2018), limited knowledge (Sandvik, Nydahl, Kihlberg, & Marklinder, 2018) and the overvaluation of sensory attri butes like taste (Mancino, Guthrie, & Just, 2018) discourage healthy choices among disadvantaged groups These barriers disincentivise local retailers to offer healthy foods in these areas, as they would provide them if sufficient demand is perceived from low-income consumers.
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