Abstract
While mandatory labeling of genetically modified organisms (GMOs) is required for many food products in the United States, this regulation excludes the alcohol beverage industry. This gap in labeling policy has led to an interesting market dynamic where some wine producers voluntarily adopt non-GMO labels to differentiate their products, despite no mandatory requirement. However, the impact of such voluntary labeling on consumer behavior and market dynamics remains poorly understood. To address this knowledge gap, we conducted an online choice experiment with 1,306 participants to examine how non-GMO labeling influences consumer preferences and purchasing decisions in the wine market. Our findings reveal two significant insights. First, the introduction of non-GMO labels creates a stigmatization effect, significantly decreasing consumer demand for unlabeled wines. Second, when consumers are presented with all three labeling options simultaneously (no label, non-GMO, and GMO), this stigmatization effect disappears, suggesting that comprehensive labeling policies might better serve market efficiency. The results indicate that a comprehensive mandatory labeling policy for alcoholic beverages could foster market equity by eliminating the disadvantages that conventional wine producers currently face under the voluntary system.