The Willingness to Pay for Green Packaged Foods to Support Sustainable Agribusiness

Abstract

Food packaging from plastic materials becomes an environmental contamination problem, but the price of environmentally friendly packaging is more expensive. The research aimed to analyze the influence of product attributes, environmental concerns, and consumption situations on the purchase of food with green packaging, as well as the influence of these variables on willingness to pay for green packaged food. The survey was conducted in Malang Raya on a total of 150 household samples. The data was analyzed with the PLS-SEM model. The results showed that product attributes and consumption situations had a positive effect on the selection of the green packaged foods. Environmental concerns negatively affect the purchase of food in green packaging. Furthermore, environmental concern and consumption situation have a positive effect on WTP of food products with green packaging. The green packaged foods also affect WTP, but the influence is weak. The recommendations are the importance of public education on the use of green food packaging and the improvement of WTP as a form of environmental concern. The food agribusiness actors have to increase the use of green food packaging. The education and introduction to consumers is done by giving written label “eco-friendly packaging” or “green packaging”.