Sustainability labels, which aim to inform consumers about the environmental impact of food products, are often seen as pivotal tools for encouraging environmentally-friendly choices. However, recent research challenges the effectiveness of these eco-labels, suggesting that their actual influence on consumer behaviour might be overstated. A comprehensive meta-analysis encompassing 49 studies involving over 150,000 customers reveals that eco-labels have only a “small-to-moderate” impact on purchase decisions; this effect diminishes further when adjusted for publication bias.

The study indicates that eco-labels perform significantly better in online environments, where consumers engage with product information without the distractions commonly found in physical retail settings. Shoppers in brick-and-mortar stores are often bombarded with competing stimuli—promotional signage, price tags, and competing brands—which can dilute the visibility and efficacy of sustainability labels. This phenomenon suggests that while eco-labels can play a role in educating consumers, their influence is often overshadowed by immediate practical concerns like convenience and cost when shopping in person.

Sophie Attwood, a behavioural scientist and founder of consultancy Behavior Global, notes that in-store environments provide a complex array of stimuli that leads consumers to filter out information that is less urgent to them. She describes eco-labels as more of a “nice to have” for consumers who may already be inclined toward sustainability. This reflects a broader trend in consumer behaviour where labels make an impact primarily on those who are already motivated by environmental concerns.

Interestingly, the long-term benefits of eco-labels might extend beyond direct consumer behaviour change. The meta-analysis suggests that these labels can enhance reputational incentives for companies and improve transparency in supply chains, thus playing a vital role in shaping corporate policies around sustainability. The study’s findings bolster claims from sustainability-focused companies like Oatly, which has emerged as a leader in carbon labelling within the food and drink sector. Oatly’s products proudly display their carbon footprint, contributing to increased awareness among consumers.

Caroline Reid, Oatly’s senior sustainability director, asserts that providing consumers with transparent information is crucial. She cites the company’s own research, which found that 59% of UK consumers indicated they would reconsider their dietary choices if armed with accurate climate impact data. This underlines the potential for eco-labels to facilitate informed consumer decisions, although the labels may primarily resonate with those who are already environmentally conscious.

Remarkably, research from My Emissions, a carbon labelling platform, suggests that the impact of carbon labels is often more pronounced in business-to-business (B2B) settings and food service contexts compared to retail. The study highlights that chefs and recipe development teams can directly reduce emissions by making informed choices based on carbon data, showing that effective educational interventions can lead to measurable environmental benefits.

Geographical factors may also influence the success of eco-labels. Some regions, such as China, France, and Switzerland, appear to exhibit more positive responses to eco-label interventions, while many other geographical contexts show mixed results. Ziqian Xia, a PhD candidate at Stanford University, emphasises the need for further research to firmly establish which country-specific factors contribute to these differences in consumer behaviour.

To enhance the effectiveness of eco-labels, experts advocate for greater standardisation and regulatory oversight. Xia’s research suggests that consistent life-cycle assessment standards and independent verification could bolster consumer trust in label accuracy. Additionally, simplifying on-pack labels and leveraging digital platforms for improved visibility can enhance engagement with sustainability information, addressing the clutter that often diminishes the impact of eco-labels in stores.

The consensus among researchers is that merely having eco-labels is insufficient to drive widespread behavioural changes. Effective strategies might include pairing labelling with economic incentives, such as subsidies for low-impact products or tax credits, which can shift consumer choices in a more sustainable direction. Furthermore, comprehensive public education campaigns are essential to raise awareness regarding the environmental impacts of food emissions and dietary choices.

As the dialogue surrounding eco-labels evolves, it is clear that while the labels are not a panacea for environmental challenges, they still hold value in fostering transparency, promoting corporate accountability, and encouraging informed consumer choices. Sustained efforts to improve the clarity and visibility of these labels, combined with broader systemic changes in food procurement and marketing, may ultimately drive the behavioural shifts that are crucial for addressing climate change.

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Source: Noah Wire Services