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.