Influence of packaging, husbandry, feeding practices, and price transparency on consumer segments preferences for milk in Germany: A conjoint and latent class analysis

Abstract

Despite a slight decline in average consumption in recent years, milk remains a significant component of diets in Western countries, including Germany. Concurrently, there has been growing awareness of the impact of food choices on climate, environment, and animal welfare. This study examines how various attributes of milk—such as packaging, husbandry practices, feeding methods, price, and price transparency—affect consumer decisions, using fresh milk as a case study.

We conducted a choice experiment with 250 participants, who selected from product alternatives varying in price, milk features, cow husbandry and feeding practices, packaging types, and labels. Contrary to previous studies, which identified price as a primary decision criterion, our findings indicate that price was secondary for most participants, except for a specific segment.

Label influence was minimal, while packaging had a significant impact on consumer choices. Interestingly, most respondents preferred glass packaging, despite its potential environmental drawbacks, suggesting a need to explore whether this preference is based on misconceptions about its environmental benefits.

The type of husbandry emerged as the most influential factor in consumer decisions. In terms of animal welfare, there was a strong preference for pasture milk, particularly for "Year-round grazing with mother-bonded calf rearing." This preference not only explains the marketing trend towards pasture milk but also presents an opportunity for sustainable farms to differentiate themselves and attract customers amidst a decline in pasture-based milk production.