From grading standards to sustainability through consumer willingness to pay for imperfect bananas using alternative market pathways in Australia

Grading and standardisation lead to significant food loss in the agricultural supply chain without redirecting it to alternative markets or value addition. This study explores Australian consumers' willingness to pay (WTP) for cosmetically imperfect bananas due to grading and standardisation to reduce food waste. A structured questionnaire was administered to 1202 respondents across Queensland, capturing insights into pro-environmental attitudes towards food, purchase intentions, and demographic characteristics. The Contingent Valuation Method (CVM), combined with an ordered probit regression model, was used to analyse WTP responses. Results revealed that women and environmentally conscious consumers demonstrated significantly higher willingness to support for buying imperfect bananas, aligning with broader goals of sustainable food systems. Higher levels of education and household income are significantly associated with greater willingness to support the purchase of imperfect produce. Educated consumers demonstrated stronger awareness of sustainability issues, while higher-income groups showed a greater capacity and inclination to pay a premium for waste-reducing alternatives. The study provides empirical evidence that consumer acceptance of cosmetically imperfect produce can serve as a viable strategy to minimise food loss and enhance sustainable consumption practices. These findings have direct implications for retailers, growers, and policymakers seeking to reduce upstream and downstream food losses. Targeted marketing strategies—such as sustainability-focused labelling, price incentives, and consumer education campaigns—can be used to position cosmetically imperfect bananas as a socially responsible purchasing choice, particularly among environmentally conscious and higher-income consumer segments. From a policy perspective, the results support the development of grading-standard reforms, public awareness initiatives, and incentives for secondary produce markets that facilitate the redirection of imperfect but edible fruit away from waste streams and into viable consumer channels.