Indonesian consumers’ preferences and willingness to pay for sustainability-certified coffee

Abstract

As the global emphasis on sustainability grows, understanding consumer behaviour towards certified products is vital for promoting responsible consumption practices. This study investigates Indonesian consumers' preferences, awareness, and willingness to pay (WTP) for sustainability-certified coffee. Utilising data from an online survey of 558 coffee consumers, a Discrete Choice Experiment (DCE) was conducted to assess WTP for three key attributes: sustainable labels (Grown Respectfully, Rainforest Alliance, and Common Code for the Coffee Community, also known as 4C), coffee types (Robusta and Arabica), and price. The mixed logit model estimation reveals a significant willingness to pay a premium for certified coffee despite generally low consumer preference and awareness. Among the sustainability labels, the Grown Respectfully label commands the highest WTP, with consumers willing to pay 28.50 % more than for the Rainforest Alliance label and 35.13 % more than for the 4C label. Coffee producers can use these findings to refine their strategies by prioritising transparent labelling and compelling narratives about sustainability, which can enhance consumer engagement, appeal to a range of income buyers, and provide a competitive edge in a market increasingly focused on sustainability.