Date of this Version
Cornhusker Economics, October 11, 2017, agecon.unl.edu/cornhuskereconomics
The development of several niche food markets has been enabled by labels highlighting the existence of desirable or the absence of undesirable food attributes and/or production technologies, effectively targeting consumers willing to pay for this type of information. Examples include the "All Natural," “No growth promoting antibiotic," "No GMOs," and "Cage-free" food labels. In what could be viewed as an extreme example of labeling what is absent, consumers can now purchase gluten-free water (McFadden 2017). This type of "redundant" labeling seeks to exploit uninformed consumers.