Is local the new organic? Empirical evidence from German regions

Abstract

Purpose

This paper measures German customers' label-depending preference and willingness to pay for organic and local food.

Design/methodology/approach

The sample covers 325 survey respondents from 12 out of the 16 German federal states. Data was collected through convenience sampling in December 2019. A choice-based conjoint analysis was operated.

Findings

Customers value local food from their federal state most, thereby accepting a price premium of no less than 200%. The label moderates the influence of organic production conditions on price acceptance significantly.

Research limitations/implications

Based on self-reported data from a convenience sample, the demographic distribution of the sample differs from that of the German population. Moreover, the willingness to pay was found to be product-specific, limiting general applicability.

Practical implications

Marketers should focus on local and local organic food in the assortment. Marketing strategies should include information campaigns. Producers may sell their products regionally or cooperate with local retailers. Introducing a separate official “local organic” label is suggested.

Originality/value

The study provides detailed evidence on the preference of German costumers and suggests a significantly higher willingness to pay for organic and local food than previous literatures.

Citation

Winterstein, J. and Habisch, A. (2021), "Is local the new organic? Empirical evidence from German regions", British Food Journal, Vol. 123 No. 11, pp. 3486-3501. https://doi.org/10.1108/BFJ-06-2020-0517