Market valuation of health claims’ types and strength: the Italian yogurt

Francesco Bimbo, Alessandro Bonanno, Rosaria Viscecchia and Gianluca Nardone
While consumer’s demand for foods delivering health benefits, or functional foods, increases, Reg.No.1924/2006, imposes to food manufacturers in the European market stringent criteria for health claims approval. Facing this trade-off, manufacturers need to assess which claim is more likely to lead to market success. We investigate the market value of different health claims, and their efficacy in Italy, using a large database of yogurt sales and a hedonic Price framework. Our results indicate large variation in the marginal price of a health claim depending upon the type of health benefits delivered and the claim’s strength.
LINK: http://ageconsearch.umn.edu/bitstream/182738/2/Bimbo-Market_valuation_of_health_claims%C3%A2%C2%80%C2%99_types_and_strength-345_a.PDF