Plastic packaging goes sustainable: An analysis of consumer preferences for plastic water bottles

The market of bottled water is projected to become the largest beverage category by volume worldwide. Consumption data are already impressive in many countries, with Italy leading the path in the European Union. Such market expansion will come with environmental costs, due to increasing plastics production and increasing bottle leakage in the environment. To tackle the problem consumer purchasing decision can make the difference. Using a hypothetical Discrete Choice Experiment this study explores consumer preferences and willingness to pay for plastic water bottles made of conventional plastic polymer and of more sustainable plastic alternatives. Additionally, by comparing two experimental conditions the study investigates whether information on plastic related sustainability might affect consumer purchasing decisions. The results provide insights that could be relevant from a market and policy perspective. They indicate that Italian consumers prefer Bio-bottles water bottles with respect to common PET, being willing to pay more for these alternatives. Furthermore, recycled materials are dispreferred compared to virgin plastics and information provision seems to help consumers discriminating across different plastic types although it is not effective in increasing willingness to pay.