Promoting healthy diets through food reformulation: The demand for “better-for-you” beverage

Abstract

This study explores how nutrients, new ingredients, and health claims from product reformulation influence consumer decisions, dietary intake, and population health in the beverage market. We focus on the beverage market in the United States as a case study because of the emerging health demand for “better-for-you” beverage options. We formulate a random coefficient discrete choice model to evaluate consumer preference for reformulated products in the nonalcoholic beverages market. We find that new ingredients that provide functionality such as energy ingredients, carbonation, or no artificial flavors have a significant positive impact on consumer choices. Further, the use of health claims can significantly increase consumer demand for beverages. Results from simulations suggest that the use of “no/low sugar,” “no/low sodium,” and “no artificial sweetener” health claims will increase the net sugar and sodium intakes from sugar-sweetened beverages, leading to an increase in body mass index and the incidence of coronary heart disease (CHD) and diabetes. The nutrient reformulation by cutting sugar and sodium content by 10%, on the other hand, will result in a decrease in sugar and sodium consumption, and further lower the incidence of CHD and stroke. However, the policy aimed at lowering the intake of one single nutrient may have an unintended spillover effect on other nutrient intakes, and policymakers should take a comprehensive approach and consider the broader nutrient impact of any policy aimed at reducing a specific nutrient.