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Is competition among soft drinks, juices, and other major beverage categories responsible for reducing Americans' milk consumption?

Author

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  • Hayden Stewart
  • Fred Kuchler
  • William Hahn

Abstract

US per capita milk consumption has been falling since the 1940s and falling at an accelerated rate in recent years. One possible reason is competition between it and other types of beverages. In this study, we determine whether changes in beverage prices are in a direction and of a sufficient magnitude for consumption trends to be explained by price competition between milk and other beverages. They are not. We also estimate a vector autoregressive model using data on households' average weekly purchases of milk and four other, major beverage categories for a very general test of whether any increase in sales of those other beverages would come at milk's expense. Results again suggest that competition between milk and the identified other major beverages is not responsible for milk's accelerated decline, and there is a need for the research community to investigate other possible explanations. [EconLit Citations: D12, Q11, Q18].

Suggested Citation

  • Hayden Stewart & Fred Kuchler & William Hahn, 2021. "Is competition among soft drinks, juices, and other major beverage categories responsible for reducing Americans' milk consumption?," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 731-748, October.
    • Handle: RePEc:wly:agribz:v:37:y:2021:i:4:p:731-748
    DOI: 10.1002/agr.21706
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    References listed on IDEAS

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    2. 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.
    3. Stewart, Hayden & Kuchler, Fred & Dong, Diansheng & Cessna, Jerry, "undated". "Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18," USDA Miscellaneous 316500, United States Department of Agriculture.
    4. Stewart, Hayden & Kuchler, Fred & Dong, Diansheng & Cessna, Jerry, 2021. "Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18," Economic Research Report 327183, United States Department of Agriculture, Economic Research Service.

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