Food eco-labels, a market competitive advantage

The rise in consumers' ecological consciousness in recent years has increased their willingness-to pay for green products. An increasing amount of consumers is environmentally-oriented when deciding upon the products that they intend to buy. Customer demand and legislation have been identified as the most important drivers of eco-design, but also for industry marketing choices. In this case, being compliant with environmental standards becomes a competitive advantage, and not a constraint. An eco-label which is provided by an independent third-party and certifies an environmental and/or ethical standard along the life-cycle of a product, may provide such competitive advantage, since it is only obtained on a voluntary base. The food supply chain forms a key aspect and priority for sustainable development, and along with food security has been of increasing concern in recent years. Pressure has therefore increased on the food production industry, and society as a whole, to evolve towards more sustainable patterns of consumption and production of food, particularly with respect to environmental, social, and ethical impacts. The number of eco-labels in the food industry is expected to continue to proliferate in 2013. Over 200 seals and logos represent some ecological, ethical, ingredient or sustainability attributes in the global food industry. For example, over 84 countries have introduced national standards for organic products, with most having separate organic logos. The lack of harmonization between these standards is leading to multiple certifications and an exponential rise in food eco-labels. This paper examines the emerging phenomenon of eco-labels in the food industry, to highlight the advantages for the market, for the sustainable development, and the overall potential for eco-labeling to achieve food-system changes.