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What’s Cooking? Demand for Convenience Foods in the United States

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  • Okrent, Abigail
  • Kumcu, Aylin

Abstract

Demand for convenience foods has grown in the United States, which has implications for dietary quality and health, but little is known about the drivers behind the growth in purchases of such foods. We construct a novel data set that contains price indexes, budget shares, advertising expenditures, and demographic and time variables for four Census regions between 1999 and 2010 for six types of convenience foods, including 4 food-at-home categories—basic ingredients, complex ingredients, ready to cook and ready to eat—and 2 food-away-from-home categories—fast food and sit down. We use these data to model demand for convenience foods using the almost ideal demand system, and then use the estimates to decompose growth in demand for convenience foods into price, advertising, demographic and time factors.

Suggested Citation

  • Okrent, Abigail & Kumcu, Aylin, 2014. "What’s Cooking? Demand for Convenience Foods in the United States," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170541, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:170541
    DOI: 10.22004/ag.econ.170541
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    File URL: http://ageconsearch.umn.edu/record/170541/files/OkrentKumcu%205-28-14%20AAEA.pdf
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    References listed on IDEAS

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    2. Helen H. Jensen & Steven T. Yen, 1996. "Food Expenditures Away From Home by Type of Meal," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 44(1), pages 67-80, March.
    3. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908.
    4. Andreyeva, Tatiana & Kelly, Inas Rashad & Harris, Jennifer L., 2011. "Exposure to food advertising on television: Associations with children's fast food and soft drink consumption and obesity," Economics & Human Biology, Elsevier, vol. 9(3), pages 221-233, July.
    5. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    6. Michael Grossman & Erdal Tekin & Roy Wada, 2012. "Fast-Food Restaurant Advertising on Television and Its Influence on Youth Body Composition," NBER Working Papers 18640, National Bureau of Economic Research, Inc.
    7. Okrent, Abigail M. & Alston, Julian M., 2012. "The Demand for Disaggregated Food-Away-from-Home and Food-at-Home Products in the United States," Economic Research Report 132469, United States Department of Agriculture, Economic Research Service.
    8. Janet Currie & Stefano DellaVigna & Enrico Moretti & Vikram Pathania, 2010. "The Effect of Fast Food Restaurants on Obesity and Weight Gain," American Economic Journal: Economic Policy, American Economic Association, vol. 2(3), pages 32-63, August.
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    10. Chou, Shin-Yi & Grossman, Michael & Saffer, Henry, 2004. "An economic analysis of adult obesity: results from the Behavioral Risk Factor Surveillance System," Journal of Health Economics, Elsevier, vol. 23(3), pages 565-587, May.
    11. Susan Elizabeth Chen & Raymond J. Florax & Samantha D. Snyder, 2013. "Obesity and fast food in urban markets: a new approach using geo‐referenced micro data," Health Economics, John Wiley & Sons, Ltd., vol. 22(7), pages 835-856, July.
    12. Vicki A. McCracken & Jon A. Brandt, 1987. "Household Consumption of Food-Away-From-Home: Total Expenditure and by Type of Food Facility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 274-284.
    13. Soberon-Ferrer, Horacio & Dardis, Rachel, 1991. " Determinants of Household Expenditures for Services," Journal of Consumer Research, Oxford University Press, vol. 17(4), pages 385-397, March.
    14. Stewart, Hayden & Blisard, Noel & Bhuyan, Sanjib & Nayga, Rodolfo M., Jr., 2004. "The Demand For Food Away From Home: Full-Service Or Fast Food?," Agricultural Economics Reports 33953, United States Department of Agriculture, Economic Research Service.
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    Keywords

    Demand and Price Analysis; Marketing;

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