The Effect of Mandatory Front-Of-Package Nutrition Warning Labels on Demand for foods 'High In' Saturated Fat, Sugar, and/or Sodium

Abstract

The Canadian Federal Government has proposed mandatory Front-of-Package labels to deter purchases of foods ‘high in’ sugar, sodium, and/or saturated fat. This research uses an incentive-compatible design to evaluate the effectiveness of warning labels on reducing the likelihood that ‘high in’ foods are purchased. 201 participants, with a focus on including marginalized groups, shopped in a mock grocery store. The treatment group had a reduced likelihood of purchasing 'high in' items overall. In the treatment group, both the number of ‘high in’ items (-12%) and the proportion of 'high in' items (-6%) per basket were reduced. Difference in effectiveness was observed based on the perceived healthfulness of the category. Notably, the label decreased likelihood of purchasing ‘high in’ juice (-43.5%), tomato sauce (-12%), and chocolate milk (-50%). The average grams per serving-size of sugar (-36%) and sodium (-27%) per basket were reduced for low-income participants in the treatment group.