Analysis of US consumer demand for food and consumption patterns

Pramatma Khanal, Tennessee State University

Abstract

Food demand analysis takes into account the different socio-economic factors. The major objectives of the research are to a. estimate elasticity of major food groups and their sub-categories b. estimate price and consumption patterns of major food categories across socio-cultural group c. analyze the factors governing the consumption of fresh fruits and vegetables among US consumers. The major data sources comprise of Behavioral Risk Factor Surveillance System (BRFSS) survey in year 2013 from Centers for Disease Control and Prevention, and historical food price and consumption from USDA. First demand elasticity (price, income and cross-price) was analyzed for major food categories. Next, trend analysis was performed to find consumption patterns of major food groups. Finally, behavioral model was applied to analyze factors responsible for household consumption of fresh produce. The data extraction and tabulation was done using Microsoft excel and R and the statistical analysis was performed using SPSS. Poisson regression model was used for analysis. ^ Households with excellent health condition category consume 1.1 (9.9%) more than least healthy group. This shows strong correlation of good health status and fruits and vegetable consumption. Females consume 1.19 (17.6%) more fruits and vegetables than males. Households involved in physical activities consume 1.244 (21.9%) times more than those who are not involved in regular physical activities. According to race categories, White and Black American consume 1.13 (12.10%) times less than the Native Hawaiian or other Pacific Islander category. Respondents of age category between 18-24 years consume 1.2 (17.90%) times less than those who are 80 years or older. Households having earning between $10,000 - $15,000 per annum consume the least amount as compared to all other higher income categories. People who are employed for wages consume the least amount 1.09 (8.7%) times less as compared with respondents who were unable to work. In general, households having higher education consume more fresh produce. The results generated from the analysis are useful in identifying important household characteristics responsible for consumption of fresh produce hence can be used as a vital tool for agribusiness firms as government agencies in decision making and designing applicable policies to promote healthy diets.^

Subject Area

Agricultural economics

Recommended Citation

Pramatma Khanal, "Analysis of US consumer demand for food and consumption patterns" (2016). ETD Collection for Tennessee State University. Paper AAI10158688.
http://digitalscholarship.tnstate.edu/dissertations/AAI10158688

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