Implications for Institutional Purchasing, and Local Agriculture
Transforming Hawaiʻi’s Food System Together (THFST) – Technical Report (2026)
Study Co-authors:
Albie Miles, Ph.D., Associate Professor of Sustainable Community Food Systems, UH West Oahu, and
Jerry Agrusa, Ph.D., Professor of Travel Industry Management, UH Manoa.
Cathrine Linnes, Ph.D. Associate Professor, Computer Science, Engineering and Economics, Ostfold University College, Norway
Holly Itoga, Ph.D. Associate Professor, Hospitality and Tourism, University of Hawaii-West Oahu
Executive Summary
This report presents findings from a mixed-methods study examining willingness to pay (WTP) for Climate Smart Commodities (CSC), Certified Organic, Fair Trade, and Indigenous Hawaiian Cultural Foods among three key consumer groups in Hawaiʻi: Japanese tourists (n=804), international tourists (n=562), and Hawaiʻi residents (n=669), complemented by qualitative interviews with chefs and food-service managers (n=25).
The results provide strong evidence that a majority of consumers across all groups are willing to pay a premium for food products that align with sustainability, locality, and cultural values. Between 58% and 86% of respondents report willingness to pay more across product categories, with approximately 60–85% willing to pay at least a 6% premium and 25–62% willing to pay at least an 11% premium. These findings are consistent with a growing body of research demonstrating that consumers and tourists are increasingly willing to pay for food products associated with environmental sustainability, ethical production, and local identity (e.g., Carpio & Isengildina-Massa, 2009; Aschemann-Witzel & Zielke, 2017; Linnes et al., 2023; Yu et al., 2022).
Importantly, the study also finds that demand is not the primary limiting factor. Interviews with chefs and food-service managers indicate widespread willingness to procure these products, but identify structural constraints related to inconsistent supply, variable quality, and lack of standardization.
Taken together, the findings suggest that Hawaiʻi possesses a significant and underutilized market opportunity for climate-smart and locally embedded food systems. However, realizing this opportunity will depend on coordinated investments in infrastructure, procurement systems, branding, and policy alignment.
1This study was supported by the USDA Project: Hawaii Partnership for Climate-Smart Communities. U.S. Department of Agriculture agreement number NR233A750004G050. The project was terminated by the USDA-NRCS effective April 22, 2025.
1. Background and Rationale
Food systems globally are undergoing a transition driven by increasing consumer awareness of environmental sustainability, ethical production, and the social and cultural dimensions of food. Within tourism contexts, food has emerged as a central component of destination identity, with growing evidence that visitors seek authentic, local, and sustainable food experiences (e.g., Badu-Baiden et al., 2022; Linnes et al., 2023).
Hawaiʻi represents a particularly important case for examining these dynamics. The state is highly dependent on imported food, yet simultaneously hosts a large and economically significant tourism sector. This creates both vulnerability and opportunity: vulnerability due to reliance on external supply chains, and opportunity due to the presence of a large consumer base that may be willing to support local and sustainable food systems.
Despite this, there has been limited empirical research quantifying willingness to pay for climate-smart and values-based food products among both visitors and residents in Hawaiʻi. This study addresses that gap by providing data that can inform food system planning, policy development, and market strategies aligned with resilience and sustainability goals.
2. Methods Overview
The study employed a mixed-methods design combining quantitative survey data with qualitative industry interviews. The survey instrument was developed based on an extensive literature review and administered by SMS Research. Respondents were provided with clear definitions of Climate Smart Commodities, Fair Trade, Certified Organic, and Indigenous Hawaiian Cultural Foods to ensure consistency in interpretation.
The survey sample included three distinct populations: Japanese tourists, international tourists from English-speaking countries, and residents of Hawaiʻi. Statistical analysis was conducted using independent sample t-tests and one-way ANOVA to assess differences in willingness to pay across groups and demographic categories.
The qualitative component consisted of 30–60 minute in-person interviews with 25 chefs and food-service managers, recruited through professional networks and the Hawaiʻi Restaurant Association. While the interview sample is not statistically representative, it provides valuable insight into procurement practices and perceived barriers within the food service sector.
3. Key Findings
The results indicate that willingness to pay for climate-smart and values-based food products is both widespread and substantial across all consumer groups, with particularly strong support among international tourists. Between 78% and 86% of international tourists reported willingness to pay more across product categories, compared to approximately 60–66% of Japanese tourists and 58–74% of Hawaiʻi residents.
When examining the magnitude of premiums, the data show that a majority of respondents in each group are willing to pay at least 6% more, with a significant proportion willing to pay 11% or more. The highest levels of willingness to pay are consistently associated with Certified Organic products and Indigenous Hawaiian Cultural Foods, suggesting that consumers place particular value on both environmental sustainability and cultural authenticity.
Branding and labeling play an important role in shaping consumer preferences, although the findings indicate that responses vary by market segment. A majority of international tourists and Hawaiʻi residents reported that labeling products as “grown or produced in Hawaiʻi” is important, while support for this attribute was lower among Japanese tourists (37.43%). At the same time, all groups demonstrated strong agreement with statements emphasizing the importance of cultural storytelling and connection to place, indicating that narrative and identity are critical components of perceived value.
The qualitative interviews reinforce these findings on the demand side while highlighting constraints on the supply side. All interviewed chefs and food-service managers expressed willingness to purchase climate-smart and locally produced foods, yet identified persistent challenges related to consistency in supply, quality, and product standardization. These findings suggest that the primary barrier to scaling these markets is not lack of demand, but rather structural limitations within the food system.
The report also includes an illustrative estimate of the potential market size associated with tourism food expenditures. However, a review of the underlying assumptions indicates that the estimate should be treated cautiously. Recalculation suggests approximately $3.78 billion in annual tourist food expenditure under the stated assumptions, and official data from the Hawaiʻi Tourism Authority indicate approximately 9.5 million visitors in 2023, rather than the 8.7 million cited in the presentation (Hawaiʻi Tourism Authority, 2023). These discrepancies do not undermine the broader conclusion that market potential is significant, but they highlight the importance of using validated data in formal economic projections.
4. Policy Implications
The findings of this study have significant implications for food system planning and policy in Hawaiʻi. First, they demonstrate that there is a strong and measurable market demand for climate-smart, locally produced, and culturally grounded food products. This demand provides a critical foundation for food system transformation, particularly when aligned with broader goals related to resilience, sustainability, and economic diversification.
At the same time, the study makes clear that demand alone is insufficient to drive transformation. The primary constraints identified by industry stakeholders—namely inconsistent supply, variability in quality, and lack of coordination—point to the need for strategic investments in supply chain infrastructure, including aggregation, processing, storage, and distribution systems. Without these investments, the market signals identified in this study cannot be effectively translated into scaled production and procurement.
Institutional procurement represents another key leverage point. Expanding local and climate-smart procurement within public institutions such as schools, hospitals, and state agencies could provide stable demand that supports producers while advancing policy goals. Achieving this will require improvements in procurement systems, including the ability to track local sourcing and integrate sustainability criteria into purchasing decisions.
The findings also highlight the importance of branding and market development strategies. Consumers respond strongly to products that are clearly identified as being produced in Hawaiʻi and that convey a sense of place and cultural connection. However, the variation in responses across consumer groups indicates that branding strategies must be tailored to specific markets rather than applied uniformly.
Finally, the study underscores the importance of advancing data systems and applied research. While willingness-to-pay data provide valuable insights into consumer preferences, future work should focus on measuring actual purchasing behavior through pilot programs, procurement experiments, and real-world market interventions. This will help bridge the gap between stated preferences and realized economic outcomes.
5. Conclusions
This study identifies a powerful alignment between consumer preferences, industry interest, and the broader goals of food system transformation in Hawaiʻi. A majority of consumers are willing to pay more for food products that reflect sustainability, locality, and cultural values, and industry stakeholders express strong interest in sourcing these products. At the same time, structural constraints within the food system limit the ability to meet this demand at scale.
These findings provide a compelling evidence base for advancing integrated food system planning and policy in Hawaiʻi. By investing in supply chain infrastructure, strengthening procurement systems, and developing targeted branding strategies, Hawaiʻi can leverage existing market demand to support a more resilient, sustainable, and culturally grounded food system.
The transition from willingness to pay to realized transformation will require intentional coordination across sectors, institutions, and communities. However, the conditions identified in this study suggest that such a transition is not only possible, but within reach.
