Are consumers still barking up the wrong (palm) tree? Insights into perceptions towards palm oil-related labels and claims

Labels and claims representing inherent health- or environment-related attributes contribute to shaping consumer product preferences and perceptions. Palm oil-related labels and claims foster assumptions about individual, social and planetary health. Although consumers in palm oil-importing countries view this commodity with scepticism, a consumer-endorsed trend towards its elimination may cause unintended shifts in environmental impacts. Instead of eliminating palm oil from industries, scientists often acknowledge the benefits of sustainably produced palm oil as a better alternative. A research gap exists to better explain consumer acceptance or rejection of products containing palm oil. To understand how palm oil-related labels and claims influence the perceived sustainability and healthiness of products, an online study was conducted with German consumers (n = 411). Predictors influencing sustainability perceptions were integrated into a Structural Equation Model to explore how these leverage positive or negative perspectives towards the absence of palm oil or the presence of certified sustainable palm oil. This study reveals that products containing no palm oil are perceived to be healthier and more sustainable. We find that sentiments towards palm oil do not necessarily follow traditional trajectories, but are underpinned by disjoint relationships and previously established judgments. Label heuristics are more influential in shaping these perceptions, making them prone to misinterpretation. A proliferation of ‘free from’ claims haloed with sustainability assumptions compromises the progress achieved within the certified sector. This calls for more sensitivity towards products containing certified palm oil, so that assumptions align with reality and consumer perceptions are not barking up the wrong tree.