Sustainability Labels in European Food Systems: A Systematic Evaluation of Barriers and Drivers

The sustainability of the agri-food system is a growing priority, particularly within the European Union (EU), initiatives such as the EU Green Deal and Farm to Fork Strategy focus to promote environmentally sustainable food systems. The EU’s regulatory framework, including directives like the Corporate Sustainability Reporting Directive (CSRD) and the Green Claims Directive, plays a pivotal role in fostering transparency while imposing operational challenges, and sustainability reporting within the supply chain. Harmonizing these regulations with international standards is essential to reducing duplicative efforts and enhancing credibility. Environmental labeling is a critical tool in this transition, offering transparency and empowering consumers to make sustainable food choices. However, its implementation faces several challenges, including fragmented regulations, financial constraints, and consumer skepticism. This study investigates the drivers and barriers influencing the adoption of sustainability labels in the EU food supply chains through a systematic literature review based on PRISMA methodology. A search of Scopus and Web of Science identified 1,969 studies, narrowed to 18 after rigorous screening. To complement this, a mapping and categorization of sustainability labels in Europe was conducted using data from the Ecolabel Index and EU reports. Findings reveal drivers and barriers across three stages: adoption, implementation, and development. In the adoption stage, trust among supply chain actors emerges as a key driver, while financial costs pose significant barriers. During implementation, labeling reduces transaction costs but requires investments in training and knowledge. At the development stage, competitive advantage drives uptake, yet consumer indifference limits effectiveness. By offering insights into these dynamics, the study provides actionable recommendations for policymakers and industry stakeholders to strengthen environmental labeling and accelerate the transition toward a sustainable food system.