The economic sustainability of farmers’ markets in Europe

Abstract

Farmers’ markets (FMs) represent one of the oldest and most prevalent forms of short food supply chains (SFSCs), serving as a vital retail outlet for local products. While the broader literature on SFSCs has a strong European focus, quantitative studies examining consumers’ willingness to pay (WTP) at FMs have predominantly focused on the United States. By focusing specifically on FMs, this study extends the existing SFSC literature through a harmonised, cross-country analysis of consumers’ WTP in three European countries, where FMs have rich traditions and cultural significance. We investigated consumer WTP for various points of sale, with a particular emphasis on FMs, utilizing a discrete choice experiment centered around a typical FM product: apples. Data were gathered through an online survey conducted in October–November 2023, involving representative samples from Hungary (n = 614), Italy (n = 600), and the UK (n = 600). Latent class modelling was applied to explore preference heterogeneity and to identify consumer segments with distinct WTP patterns across the three countries. The findings confirm that FMs hold a unique position in the retail market, often commanding a price premium compared to grocery stores and supermarkets. However, the FM premium is not uniform across consumer segments or countries, and product-specific attributes, especially visual quality, origin and geographical indication, often play an equally important or even stronger role in shaping consumers’ WTP. British consumers exhibited the highest WTP, followed by Hungarian and Italian consumers. These differences can be attributed to variations in food retail dynamics, public attitudes towards local food, and the prevalence of SFSCs in each country. The findings provide useful insights for public policy, producers, and farmers’ market organizers by showing how FMs can support locally embedded food systems, strengthen short supply chains, and contribute to the economic viability of local producers.