Impact of ‘‘high in” front‐of‐package nutrition labeling on food choices: Evidence from a grocery shopping experiment

Abstract

This study investigates the ex‐ante effects of the front‐of‐package (FoP) nutrition labeling for food products high in saturated fat, sugar, and/or sodium, which is a new regulation recently announced by Health Canada to combat obesity. The Canadian food industry has until January 1, 2026, to comply with the new regulations. To examine the ex‐ante effects of this policy, an incentivized experiment is conducted in a lab that replicates a grocery store. The results at the product level indicate a significant decrease in the probability of choosing a product with a “high in” label compared to those without “high in” labels. Basket‐level results demonstrate that FoP labeling is significantly associated with a lower quantity share and dollar value share of products high in one of the mentioned nutrients selected in a grocery basket, as well as fewer grams of sugar and sodium in a grocery basket. Furthermore, the study reveals that individuals with higher educational attainment, a risk‐averse nature, and a lower level of self‐reported nutrition knowledge tend to react more to the labeling. The insights from eye‐tracking data further support these results, revealing that product choices are deterred by a fixation on “high in” labels. This study contributes to an improved understanding of the pathway in which labeling schemes influence food choices.