Consumer demand for healthy beverages in the hospitality industry: Examining willingness to pay a premium, and barriers to purchase

Abstract

This study empirically examines consumer demand for healthy beverages within the hospitality industry. The research investigates sociodemographic and motivational factors that influence consumers’ ‘willingness to pay a premium’ (WTPP) price for healthy beverages using survey data from 1021 consumers in Australia and New Zealand (NZ). Water and juice are rated as representing ‘healthy’ beverages sold by hospitality businesses. Under 2% of respondents consider sugar free drinks as being healthy. Consumers rate a ‘healthy’ beverage as having low/no sugar, natural/no additives, or containing vitamins and minerals. Less than 1% of respondents identify ‘probiotics’ or ‘organic’ as a healthy beverage. Censored Poisson finds consumers who frequently eat out or are younger have higher WTPP. Healthy eating goals increase WTPP, whereas food economizing goals decreases WTPP. Food hedonism goals reduces consumers’ WTPP, and gender differences moderates this relationship. The findings present new insights on consumer behavior and healthy consumption in hospitality.