Are consumers willing to eat products made from food waste?
New entrepreneurial ventures are emerging to repurpose edible waste into snack foods or prepared meals. A study of 941 French consumers examines the acceptability of this food upcycling.
Marie-Christine Lichtlé, University of Montpellier; Anne Mione, University of Montpellier; Béatrice Siadou-Martin, University of Montpellier and Jean-Marc Ferrandi, University of Nantes
Companies specializing infoodupcycling, upcycling, or repurposing are on the rise. Hubcycled produces flour from soy milk and flavorings made from strawberry seeds; the Ouro biscuit company repurposes brewer’s grains into snack crackers; and In Extremis repurposes unsold bread from bakeries into snack crackers.
“Foodupcycling is defined as a food product in which at least one of the ingredients is either a byproduct or residue from the production of another product (such as spent grain from beer production), an unsold product (such as bread), or an ingredient that was previously considered waste and/or discarded in the supply chain.”
Due to the costs associated with collecting this waste or unsold inventory and processing it, the retail price of these upcycled products is higher than that of traditional offerings. But what about consumer acceptance of these products? Are consumers willing to make this financial sacrifice to switch to sustainable food options? Can this niche model become a sustainable business model? These are the questions we address in a study conducted among 941 consumers.
Food upcycling
In 2021, 8.8 million tons of food waste were generated in France. Of this waste, 4.3 million tons were edible—unconsumed food still in its packaging, leftovers, etc. To encourage companies to transition their production models toward sustainability, the government passed the Anti-Waste Law for a Circular Economy (Agec) in 2020. This is because the food industry faces significant challenges: ensuring food security, offering sustainable products, and limiting food waste at every stage—whether in production, distribution, or consumption.
Acceptance ofupcycling
Our goal is to assess the acceptability of upcycled products and identify the attributes that are likely to increase this acceptability—whether they relate to the company, product quality, or the manufacturing process.
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To measure consumer acceptance of these upcycled products, our research is based on an experiment conducted with 941 consumers. After reviewing an offer for snack crackers—including price, weight, product visuals, and labeling—the participants were surveyed four times. The data collected allows us to assess consumer behavioral responses, measured initially by attitude toward the product and willingness to pay, based on a minimal presentation of the product.
Information is also provided highlighting three different potential benefits: the company’s ethical approach, the taste quality of the cookies, and their manufacturing quality.
Willingness to pay
Our research yields three key findings. The first concerns willingness to pay. On average, consumers indicate a willingness to pay of 1.96 euros. This price is well above the market reference price (the market leader sells the product for 0.90 euros). However, it remains below the actual cost of this product or comparable high-quality products (some organic brands sell for more than 3 euros).
Second, adding a single argument—regardless of its nature—increases the perceived value. Consumers are then willing to pay an average of €2.15 instead of €1.96 (a gain of about 10%). However, adding one or two additional arguments does not further increase willingness to pay.
This new product is not received the same way by all consumers; this justifies the implementation of a differentiated approach. Indeed, psychological distance influences the perception and representation of the upcycled product. It is defined by construct level theory as a subjective experience associated with the degree of closeness or distance an individual feels toward an object—in this case, the cookie. We demonstrate that psychological distance explains attitudes toward the product and willingness to pay. In other words, consumers who feel the least distant from the cookie have a higher willingness to pay than those who feel distant and hold the most favorable attitude. Conversely, those who feel the most distant from the cookie have the lowest willingness to pay and the most unfavorable attitude.
Communicating what makes us unique
This research thus suggests ways to improve the sustainability of this business model. In terms of communication, it is important for companies operating in this market to highlight a benefit that aligns with the upcycled nature of their products and to communicate this effectively. The goal of this communication is to strengthen the credibility of companies in this market. It must be based on concrete arguments in order to bridge the psychological gap.
There is no point in emphasizing the benefits, as these communication efforts do not necessarily improve willingness to pay or consumer attitudes. This finding is consistent with the limited effects observed with the use of multiple labels on food products. Studies show that having multiple labels or certifications does not increase willingness to pay for food products such as honey.
Companies must clearly target consumers who are concerned about food waste and establish a foothold in this niche market before they can hope to reach the general public. This segmentation allows them to offer tailored educational approaches suited to different audiences, thereby reducing their psychological resistance to the cookies and… convincing them to purchase the product at a higher price point.
Marie Eppe, founder of In Extremis, contributed to this article.
Marie-Christine Lichtlé, University Professor, Co-Director of the MARÉSON Chair, University of Montpellier; Anne Mione, Professor of Strategic Marketing, Quality Management, and Strategy, University of Montpellier; Béatrice Siadou-Martin, University Professor of Management Sciences, Co-Director of the MARESON Chair, University of Montpellier and Jean-Marc Ferrandi, Professor of Marketing and Innovation at Oniris, University of Nantes, Co-founder of the MARÉSON Chair, Nantes University
This article is republished from The Conversation under a Creative Commons license. Readthe original article.