Navigating label effectiveness: Insights into consumer perception and design elements for energy and eco-labels

Eco-labelling is widely regarded as an effective strategy to promote sustainable production and consumption. However, when developing a new label as foreseen under the Ecodesign for Sustainable Products Regulation (ESPR), it is important to know which factors influence its effectiveness. This paper reports on a systematic literature review on eco-label design factors to inform potential label development: (a) Which factors increase label comprehension and recognition? (b) Which factors enhance consumer engagement? (c) How do perceptions vary across demographic groups and across Europe? (d) How do multiple labels on a single product interact? Combining a systematic review of literature from the past five years with studies recommended by experts, we analysed a total of 45 key studies in depth.
We find that comprehension is enhanced by simple, distinctive designs and clear categorical scales, with alphabetical scales outperforming numerical ones. This is possibly related to the dominance of the current EU Energy Label. Consumers prefer colour-coded labels and value supplementary information, such as QR codes, although engagement remained limited in previous studies. Multiple labels on a product can either aid or confuse consumers, depending on information consistency. The reviewed studies point out interrelations with socio-demographic (e.g. age) and socio-psychological variables (e.g. environmental awareness), but the findings remain inconsistent. Trust in the labelling authority strongly influences label recognition and use. Finally, the review outlines design and implementation recommendations for future eco-label development, including linking digital information and adapting designs to product size and complexity. Additionally, limitations and results are discussed in light of promoting sustainable product production and choice.