Consumer responses to GMO-related labeling in wine markets: evidence from an online choice experiment

Purpose
GMO labeling is mandatory for many food products in the USA; however, alcoholic beverages are exempt from these regulations. As a result, some wine producers voluntarily adopt GMO-related labels as a differentiation strategy, yet the effects of such labeling on consumer behavior remain unclear. This study aims to examine how GMO and non-GMO wine labels influence consumer purchasing decisions.
Design/methodology/approach
An online discrete choice experiment was conducted with 1,306 participants to evaluate consumers’ willingness to buy wines under alternative labeling scenarios, allowing identification of both direct labeling effects and order-dependent responses.
Findings
The results reveal two main findings. First, GMO labels significantly reduce consumer demand for wine relative to unlabeled products, whereas non-GMO labels do not affect initial purchase likelihood. Second, exposure to non-GMO labels prior to unlabeled options reduces the willingness to buy of unlabeled wines by 8.5%, suggesting a stigmatization effect associated with voluntary labeling.
Originality/value
This study provides novel evidence on the effects of GMO-related labeling in the wine market, a product category largely excluded from mandatory labeling regulations. By identifying a stigmatization effect associated with voluntary non-GMO labeling, the findings offer policy-relevant insights into discussions surrounding the potential extension of GMO labeling requirements to alcoholic beverages.