Multidimensional sustainability labels in the Swedish food sector : A study on consumer perception

Abstract: Sustainability labels play an important role as information providers in the food sector. They serve consumers with information regarding a product’s sustainability performance and shows whether the product is compliant with certain rules and regulations. Consumers of today do however find it difficult to orient among the multitude of label alternatives and there are difficulties knowing exactly what the labels stand for. Additionally, the complex concept of sustainability is not fully portrayed through existing labels, as they communicate a one-dimensional viewpoint and lack transparency regarding its sustainability assessment criteria of the product. This lack of transparency creates information asymmetry between consumers and producers, which in turn prevents consumers from making an informed choice. To decrease the prevailing information asymmetry, multidimensional sustainability labels can be an alternative. This since they communicate multiple dimensions of sustainability in a simplified and objective manner. The main aim of the study is to examine whether different consumer attributes correlate with the perception of a multidimensional label. Further, the study aims to evaluate a multidimensional label’s potential to decrease the information asymmetry within the food sector. This was investigated through an online survey with 879 respondents. The results showed that (i) the only customer attribute that correlates with the perception of a multidimensional label is the respondent’s sustainability profile, (ii) the multidimensional label is considered necessary and complementary to existing labels as it clarifies a product’s sustainability performance, and (iii) further research is needed, e.g. regarding what design is easiest to comprehend, to successfully introduce it to the food sector.