Consumer Preferences for Functional GM Foods in the UK: A Choice Experiment

Biotechnology and the development of genetically modified (GM) crops emerged in the early 1990s. The ‘first generation’ of GM foods was developed to assist farmers in the production process by increasing crop yields and their resistance to adverse weather conditions, pests, and weeds, as well as reducing fertilizer costs. These products met with opposition in the UK with consumer worries over potential health and environmental risks and the perception of only minimal private benefits. Currently, a ‘second generation’ of ‘functional’ GM foods are being developed with a focus on direct benefits to consumers, such as enhanced taste and increased vitamin content. This study aims to investigate consumer preferences for these foods. If the benefits are found to outweigh the perceived risks, a potential market for such products could emerge (Marin & Notaro, 2007). Studies into consumer preferences for GM foods tend to identify a spectrum of opinion. For example, in the UK, the Consumers’ Association found that approximately 30% of the UK public would find GM foods acceptable, while 30% were entirely opposed to such foods (Consumers’ Association, 2002). Rigby and Burton (2005) used random parameter logit (RPL) modelling on choice experiment data. They found that 30% to 40% of the UK public are indifferent towards GM and GM-free foods that are equally priced. Spence and Townsend (2006) evaluated willingness to pay (WTP) for GM food using an equivalent gain task in which participants actually received the options they chose. They found that most participants would choose GM food over some amount of money (74.5%), though GM food was found to be valued significantly less than non-GM food. (See Yao and Wang [2012] and Costa-Font, Gil, and Traill [2008] for reviews and Dannenberg [2009] and Lusk, Jamal, Kurlander, Roucan, and Taulman [2005] for meta-analyses of past valuation studies.) In terms of ‘functional’ GM foods, studies have almost always found that the value placed on GM products is dependent on the particular beneficial attribute it offers. For example, in the United States, an International Food Information Council survey conducted in 2002 found that 71% of consumers would likely buy produce enhanced by biotechnology to require fewer pesticide applications, compared to 54% who indicated a willingness to purchase GM produce enhanced to taste better. In the UK, Frewer, Howard, and Shepherd (1997) analyzed consumers’ real purchasing behavior for yogurt, tomatoes, and chicken drumsticks and found that consumers were more willing to accept genetic modification to produce foods with beneficial health and environmental traits but less likely to accept genetic modification used to increase shelf life of a product or to reduce the purchase price. Other studies have found that consumers are willing to pay significantly more for functional foods that entail genetic modification within species as compared to modification across species (e.g., Colson, Huffman, & Rousu, 2011, Hossain & Onyango, 2004). Further, several studies have examined James Ison and Andreas Kontoleon Department of Land Economy, University of Cambridge The aim of this study is to investigate consumer preferences for functional GM foods in the United Kingdom. A choice experiment methodology was utilized to elicit respondents’ purchase intentions with regard to GM bread with functional shelf life, vitamin content, and environmental quality attributes. Results from multinomial logit and random parameter logit modelling indicate that for parity, respondents would require a mean monetary discount of 13% on functional GM bread compared to standard bread; however, 65% of the sample would be willing to buy GM bread and 33.3% would be willing to pay a premium for functional GM bread. Environmental quality and vitamin content attributes substantially increased bread valuations, but the effect of enhanced shelf life was insignificant. The modelling also indicates that respondents with the highest willingness to pay for functional GM bread are typically young, male, and with a high knowledge of GM, while high-income respondents are more averse to GM foods.