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Unraveling Demand for Dairy-Alternative Beverages in the United States: The Case of Soymilk

Author

Listed:
  • Dharmasena, Senarath
  • Capps, Oral, Jr.

Abstract

Soymilk is one of the fastest growing categories in the U.S dairy alternative functional beverage market. Using household-level purchase data from Nielsen’s 2008 Homescan panel and the Tobit econometric procedure, we estimate conditional and unconditional own-price, cross-price, and income elasticities for soymilk, white milk, and flavored milk. Income, age, employment status, education level, race, ethnicity, region, and presence of children in a household are significant drivers of demand for soymilk. White milk and flavored milk are competitors for soymilk, and soymilk is a competitor for white milk. Strategies for pricing and targeted marketing of soymilk are also discussed.

Suggested Citation

  • Dharmasena, Senarath & Capps, Oral, Jr., 2014. "Unraveling Demand for Dairy-Alternative Beverages in the United States: The Case of Soymilk," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(01), pages 1-18, April.
    • Handle: RePEc:ags:arerjl:166028
    DOI: 10.22004/ag.econ.166028
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    References listed on IDEAS

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    1. James Heckman, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    2. Zheng, Yuqing & Kaiser, Harry M., 2008. "Advertising and U. S. Nonalcoholic Beverage Demand," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(2), pages 147-159, October.
    3. Steven T. Yen & Biing-Hwan Lin & David M. Smallwood & Margaret Andrews, 2004. "Demand for nonalcoholic beverages: The case of low-income households," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 309-321.
    4. Dharmasena, Senarath & Capps, Oral, Jr., 2011. "Is Chocolate Milk the New-Age Energy\Sports Drink in the United States?," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98742, Southern Agricultural Economics Association.
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    Cited by:

    1. Capps, Oral & Wang, Lingxiao, 2024. "U.S. Household Demand System Analysis for Dairy Milk Products and Plant-Based Milk Alternatives," 2024 Annual Meeting, July 28-30, New Orleans, LA 343575, Agricultural and Applied Economics Association.
    2. Sharon Raszap Skorbiansky & Monica Saavoss & Hayden Stewart, 2022. "Cow's milk still leads in the United States: The case of cow's, almond, and soy milk," Agricultural Economics, International Association of Agricultural Economists, vol. 53(2), pages 204-214, March.
    3. Ghazaryan, Armen & Bonanno, Alessandro & Carlson, Andrea, 2023. "I Say Milk, You Say Mylk. Demand Separability in a Broadened Milk Category," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.
    4. Mendez, Samara & Peacock, Jacob & The Humane League Labs, 2021. "Exploring the impact of plant-based milk alternatives in the US," OSF Preprints tdghp, Center for Open Science.
    5. Peter Slade & Mila Markevych, 2024. "Killing the sacred dairy cow? Consumer preferences for plant‐based milk alternatives," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 70-92, January.
    6. Bakhtavoryan, Rafael & Capps, Jr., Oral, . "A Demand Systems Analysis for Cheese Varieties Using a Balanced Panel of US-Designated Market Areas, 2018–2020," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(2).
    7. Huang, Wei, 2022. "Demand for plant-based milk and effects of a carbon tax on fresh milk consumption in Sweden," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 518-529.
    8. Capps, Jr., Oral J. & Gao, Long, 2023. "A Comparison of Demand System Models Peculiar to a Granular Array of Dairy Products," Journal of Food Distribution Research, Food Distribution Research Society, vol. 54(03), November.
    9. repec:osf:osfxxx:tdghp_v1 is not listed on IDEAS
    10. Capps, Oral Jr. & Gvillo, Rejeana Marie, 2020. "Economic and Sociodemographic Drivers Associated with the Decision to Purchase Food Items and Nonalcoholic Beverages from Vending Machines in the United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 51(3), November.
    11. repec:ags:aaea22:343575 is not listed on IDEAS
    12. Khanal, Binod & Lopez, Rigoberto, 2021. "Demand for Plant Based Beverages and Market Competition in Fluid Milk Markets," 2021 Conference, August 17-31, 2021, Virtual 315369, International Association of Agricultural Economists.
    13. repec:osf:osfxxx:j89qm_v1 is not listed on IDEAS
    14. Hu, Yang & Dharmasena, Senarath & Capps, Oral Jr. & Janakiraman, Ramkumar, . "The Growing Market for Energy and Sports Drinks in the United States: Can Chocolate Milk Remain a Contender?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 51(2).
    15. Copeland, Alicia & Dharmasena, Senarath, 2016. "Impact of Increasing Demand for Dairy Alternative Beverages on Dairy Farmer Welfare in the United States," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230044, Southern Agricultural Economics Association.
    16. Hoa K. Hoang, 2018. "Analysis of food demand in Vietnam and short†term impacts of market shocks on quantity and calorie consumption," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 83-95, January.

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