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Demand for Varied Fruit and Vegetable Colors

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  • Steele, Marie
  • Weatherspoon, Dave

Abstract

The objective of this study is to assess the demand for fruit and vegetable (F&V) colors. Consumer preferences for F&V colors have yet to be examined though nutritional health benefits are associated with color and the USDA has promoted consumption based on the F&V color. Supermarket scanner receipt data from an independent supermarket in a primarily Hispanic neighborhood in the Midwest was collected from May 2014 through January 2015 and transformed into a panel dataset of customers’ two-week purchases. F&V were divided into four color classes: green, white, red/blue/purple, and yellow/orange. The Quadratic Almost Ideal Demand System adjusted to account for the large proportions of non-purchases and to control for additional explanatory variables was used for analysis. F&V weak separability was tested and failed; hence, eight color expenditure share equations (four for fruits and four for vegetables) were estimated within one model. Expenditures and prices significantly impact the demand for the F&V colors. Consumers are most price responsive to white F&V and most expenditure responsive to the red/blue/purple and yellow/orange F&V.

Suggested Citation

  • Steele, Marie & Weatherspoon, Dave, 2016. "Demand for Varied Fruit and Vegetable Colors," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235912, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235912
    DOI: 10.22004/ag.econ.235912
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    Keywords

    Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Health Economics and Policy;
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