Valuation of nutritional and health claims for yoghurts in Spain: A hedonic price approach

Abstract

This article investigates price effects of nutritional claims (NC) and health claims (HC), in addition to other attributes, on yoghurts in the Spanish market. Prices and product characteristics are collected from yoghurt label references found on the shelves of the main representative retail shops in the capital city of Aragon (Zaragoza) Spain. The total sample included 508 yoghurts. Nutritional and health claims (NHCs) are selected based on the official definitions of the (EC) Regulation No 1924/2006 and No 432/2012. Premium prices of the NHCs and other attributes included were assessed through a hedonic price approach. Results show that yoghurt is a highly differentiated food product. NCs related to fat-free, low in sugar and fiber content did not affect yoghurt prices while most of the health claims received significant positive effects. Health claims outperform nutritional claims leading to higher premium prices. These findings are a useful source in a better understanding of the evolution of NHCs in the Spanish market. Our findings suggest that NCs accompanied by the corresponding HC, which exactly defines the benefits of that nutrient in our health may be a promising strategy for product differentiation.