Label copresence for healthier choices: How sugar content per daily limit and sugar warning labels balance out the health halos of nutrient-content claim

Abstract

Excessive sugar consumption is a major cause of obesity and many non-communicable diseases (NCDs). Overconsumption of sugar has been associated with a higher number of NCD deaths. To curb sugar consumption, this study examined the label copresence effect of sugar content per daily limit, sugar warning, and nutrient-content claim on consumer choices, using the mixed logit model on conjoint choice data of orange juice among 390 college students in Thailand, illustrating that food labels affect consumer food choice decision. Results showed that nutrient-content claims are the most influential label on choice selection, followed by sugar content per daily limit, and sugar warning. Consumer characteristics and unobserved heterogeneity on label importance affect intermediary steps on choice decisions. Additionally, sugar content per daily limit labels significantly induced healthy choices whereas nutrient-content claims significantly encouraged any choice selection. Sugar warning label were found to be significantly influential among overweight people. The health halo effects of nutrient-content claims were found, swaying consumers toward unhealthy choices. This health halo effect can be alleviated by sugar content per daily limit and sugar warning labels. Evidently, male consumers prefer sweeter choices compared to female consumers, whereas healthy eaters prefer low sugar content. Unobserved heterogeneity in sugar warning importance was found to be more dispersed than that of nutrients-content claim, explaining why sugar warning label cannot override the positive health halo effects of nutrient-content claim. The optimal copresence label design for healthier choices was discussed. Further behavioral validation is essential before the insights can be applied.