Safe, Sustainable, and Nutritious Food Labels: A Market Segmentation of Fresh Vegetables Consumers

Food labels can help consumers make choices by providing information regarding the nutritional content, food safety, and environmental footprint of a product. As the number of food labels in the marketplace increases, and so does the information overload, food retailers are continuously challenged to assess consumers' choices for labels. In addition, consumer heterogeneity and changing regulations and demand have yielded inconsistent findings on consumers' preferences for food labels. This study used a three-step approach to identify the market segments of fresh vegetables (FVs) consumers based on their preferences for a comprehensive list of labels conveying food safety, nutritional benefits, and pro-environmental attributes. A principal component analysis yielded three factors that grouped FVs labels. The cluster analysis yielded four segments of consumers that were identified with statistically different concerns and priorities. The Label Conscious highly valued all the food safety, nutritional, and pro-environmental labels when buying fresh vegetables, the Wellness Enthusiasts mainly valued nutritional and pro-environmental labels, the Safe Veggies searched for FVs that are free of harmful chemicals with a focus on traceability and safety inspections, and the DIYers reported the lowest valuation for all food labels, especially those conveying FVs are pre-washed and ready-to-eat. Lastly, a multinomial probit model showed that cluster membership was driven by education, consumption of FVs, information sources, and perceptions. Findings can help policymakers, researchers, and retailers tailor food labels more effectively when marketing FVs to specific consumer segments.