Milk packaging innovation: Consumer perception and willingness to pay

Currently the cow milk market is characterised by a decrease in consumption and sales, for both fresh and long-life products. In addition to the negative consumer perception towards milk, linked to, for example, its potential perceived negative effects on human health, at Italian level, this product is overlooked on the market in terms of communication strategies and innovation, increasingly rendering this product an undifferentiated commodity. As product packaging represents a key factor to improve and develop products on the market, the aim of this research is to analyse consumer preferences and attitudes towards different innovative strategies of milk packaging. A consumer sample from North-West Italy was involved in the experiment, to investigate their purchasing habits and preference towards cow's milk. An ordered logit model was implemented, in order to determine consumer willingness to pay for milk packaging innovation (11 packaging indicators), in addition to establishing the best strategies for product improvement, in recognition of the emerging needs of consumers. We found that consumers express a high level of interest towards the packaging attributes associated with environmental sustainability, especially regarding the choice of packaging materials and their recyclable features (from 3.369 to 3.645 of mean preference score of the 5-points Likert scale). Furthermore, consumers declared a willingness to pay a premium price, up to 20% more, for innovative milk packaging, demonstrating the potential for general applicability in the relevant market.