U.S. meat demand elasticity estimates: using publicly available data versus scanner data

Traditionally, many meat demand analyses have used publicly available data amassed by the U.S. Department of Agriculture (USDA) and the Bureau of Labor Statistics (BLS). Circana retail point-of-sale scanner data offer an alternative to these publicly available data sources. Scanner data allow for quantity-weighting retail prices to account for increased purchases at lower prices due to sales and promotions. We find that quantity-weighted scanner-based beef and pork prices are lower than those reported by USDA, whereas quantity-weighted chicken prices are higher. Rotterdam demand models are estimated using both publicly available and scanner data sources. Own- and cross-price elasticities estimated using scanner data are greater in magnitude than those estimated using publicly available data, suggesting meat consumers may be more price sensitive than indicated by elasticity estimates from publicly available data sources. Scanner data insights are further explored by estimating demand for meat products with organic or natural claims. Demand elasticities for these differentiated meat products are more elastic than those for meat products without such claims, highlighting a greater amount of consumer price sensitivity when purchasing such products.