Firms’ strategies in food innovation and reformulation and their responses to regulatory nutritional policies
To deal with health issues related to food consumption, governments are implementing partnerships with the food industry to generate changes in the quality of foods, based for instance on the decrease in salt or fat contents. Some governments employ also more coercive policies, based on the ban of some ingredients, the implementation of quality standards, or advertising regulations. Are these policies focused on the supply side more promising than policies focused on consumers? Are market incentives sufficient to induce voluntary changes by firms or is public regulation of food quality needed to reach public health objectives?