Understanding consumers' perspectives on food labelling in India

This study aims at identifying the factors influencing consumers' perception on food labelling and its impact on food purchase decision making, through personal interviews of 631 respondents using a structured questionnaire. To analyse the consumers' perceptions on food labelling, factor analysis has been carried out to identify the underlying dimensions among a set of food labelling attributes using the principal component analysis. Based on factor analysis, four sets of components/factors have emerged, that is, (i) serving method; (ii) quality and nutrition; (iii) production and storage; and (iv) product identification, which explain 66.271% of the variance. Logit regression analysis indicates that among the socio-demographic indicators, the estimated coefficients for gender, education, income and location of residence are statistically significant. Similarly, information on quality and nutrition, production and storage processes, and basic information of the product is found to be significant, implying that these factors are more likely to influence the use of food labels in making informed purchase decisions by the consumers. The findings of the study give practical insights on food labelling issues for the food processors and policy makers.