Young consumers' preferences for water-saving wines: An experimental study

Abstract

Freshwater scarcity is becoming one of the most pressing issues of the global environmental sustainability, and agriculture is the main responsible of that scarcity. During the last decade, there has been an increasing consumers’ environmental concern about the impact of food production on water usage. This paper investigates young consumers’ preferences towards water saving wines and the determinants of willingness to pay (WTP) for these products. Data were collected through an experimental auction mechanism in Italy by assessing young consumers’ willingness to pay for three different wines (i.e. conventional-no water saving label, water saving front-of-pack labelled and water saving back-of-pack labelled). Young consumers’ (N = 200) characteristics related to their personal values, pro-environmental attitudes, wine habits, labeling attitudes and socio-demographics were also collected. Results reveal that on average young consumers are willing to pay higher prices for water saving labeled wines. Additionally, wine consumption frequency, label trust and use as well as consumers’ environmental-friendly attitude have a positive effect on willingness to pay for these wines. The current study offers valuable insights to policy makers and wine producers for product differentiation and for more efficiently targeting campaigns towards young consumers, in order to increase sustainability-labeled wine consumption.