Coffee sustainability attributes in developing countries: the Honduran domestic coffee market

Abstract

Consumers are becoming increasingly concerned about the sustainability of their purchases. The coffee industry has been a leader in developing initiatives that promote the adoption of sustainable practices along the value chain. Labels on coffee packages that denote sustainable attributes are intended to inform the consumer and encourage sustainable consumption. The main objective of this study was to analyze consumers’ knowledge of, and preference for sustainable labels (Fairtrade, Organic USDA, Rain Forest Alliance, and 4C) on coffee in Honduras, a developing low-income and high-quality coffee exporting country. The study also evaluated the consumer’s visual attention to sustainable coffee labels. Data were collected using a questionnaire (including a choice experiment) from a sample of 450 consumers, as well as eye-tracking technology (a subsample of 65 consumers). Although Honduran coffee consumers have low levels of familiarity and knowledge about sustainable labels, they are willing to pay premiums for coffee with these labels (10% to 27% relative to average prices). Consumers pay more attention to the Organic USDA label, which is also the label with the highest willingness to pay value. Overall, the study’s results indicate that there is a domestic market for coffee produced sustainably in Honduras.