Impact of Healthy Alternatives on Consumer Choice: A Balancing Act

•Consumers ‘balance’ their choice of healthy and regular products based on specific health concerns.•We estimate a heterogeneous multi-category choice model nested within an augmented latent class structure.•We use scanner panel data and survey data including an individual ‘health orientation score’.•Results indicate the presence of ‘Healthy’, ‘Balancing’ and ‘Hedonic’ segments across different health elements.•A study of price elasticities reveals significant implications for promotional strategy.