IDEAS home Printed from https://ideas.repec.org/p/ags/uersrr/262195.html
   My bibliography  Save this paper

U.S. Households’ Demand for Convenience Foods

Author

Listed:
  • Okrent, Abigail M.
  • Kumcu, Aylin

Abstract

Over the past four decades, demand for foods that save households time in meal prepa - ration and cleanup (i.e., “convenience foods”) has grown in the United States. This has implications for dietary quality and health. But little is known about the drivers behind the growth in demand for such foods. One driver might be that Americans are purchasing more processed foods because of those foods’ declining market prices rela - tive to their less processed counterparts. Another driver might be that the most adver - tised foods are those that are the most convenient or that American households have little time for meal preparation because of labor-market participation. How declining incomes affect the demand for convenience may also be a driver. Between 1999 and 2010, changes in prices and total food expenditure drove most food-purchasing patterns. Meals and snacks at fast-food restaurants were also responsive to changes in advertising expenditures, while hours worked had little effect on demand for any foods.

Suggested Citation

  • Okrent, Abigail M. & Kumcu, Aylin, 2016. "U.S. Households’ Demand for Convenience Foods," Economic Research Report 262195, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:262195
    DOI: 10.22004/ag.econ.262195
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/262195/files/err-211.pdf
    Download Restriction: no

    File URL: https://ageconsearch.umn.edu/record/262195/files/err-211.pdf?subformat=pdfa
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.262195?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. John L. Park, 1998. "The Proposition of Fresh Prepared Foods: Retail Practices and Systemwide Implications," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(2), pages 435-447.
    2. Pesaran, M. Hashem & Shin, Yongcheol & Smith, Richard J., 2000. "Structural analysis of vector error correction models with exogenous I(1) variables," Journal of Econometrics, Elsevier, vol. 97(2), pages 293-343, August.
    3. 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.
    4. Ruhm, Christopher J., 2005. "Healthy living in hard times," Journal of Health Economics, Elsevier, vol. 24(2), pages 341-363, March.
    5. 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, December.
    6. BARTEN, Anton P., 1969. "Maximum likelihood estimation of a complete system of demand equations," LIDAM Reprints CORE 34, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    8. George Davis, 2014. "Food at home production and consumption: implications for nutrition quality and policy," Review of Economics of the Household, Springer, vol. 12(3), pages 565-588, September.
    9. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    10. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    11. David A. Benson & Mariacristina De Nardi & Eric French, 2012. "Consumption and the Great Recession," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 36(Q I), pages 1-16.
    12. 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.
    13. Arthur Lewbel, 1997. "Constructing Instruments for Regressions with Measurement Error when no Additional Data are Available, with an Application to Patents and R&D," Econometrica, Econometric Society, vol. 65(5), pages 1201-1214, September.
    14. 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.
    15. Huffman, Wallace E., 2011. "Household Production and the Demand for Food and Other Inputs: U.S. Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-23, December.
    16. Fred J. Prochaska & R. A. Schrimper, 1973. "Opportunity Cost of Time and Other Socioeconomic Effects on Away-From-Home Food Consumption," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(4_Part_1), pages 595-603.
    17. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 617-650.
    18. Oral Capps & John R. Tedford & Joseph Havlicek, 1985. "Household Demand for Convenience and Nonconvenience Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 862-869.
    19. Steven T. Yen, 1993. "Working Wives and Food away from Home: The Box-Cox Double Hurdle Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 884-895.
    20. Patrick J. Byrne & Oral Capps & Atanu Saha, 1996. "Analysis of Food-Away-from-Home Expenditure Patterns for U.S. Households, 1982–89," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 614-627.
    21. Rickertsen, Kyrre & Chalfant, James A & Steen, Marie, 1995. "The Effects of Advertising on the Demand for Vegetables," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 22(4), pages 481-494.
    22. Kuhns, Annemarie & Volpe, Richard, 2014. "Assessing the Impact of the Great Recession on Healthfulness of Food Purchase Choices," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170485, Agricultural and Applied Economics Association.
    23. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    24. Dave, Dhaval M. & Kelly, Inas Rashad, 2012. "How does the business cycle affect eating habits?," Social Science & Medicine, Elsevier, vol. 74(2), pages 254-262.
    25. Stewart, Hayden & Yen, Steven T., 2004. "Changing household characteristics and the away-from-home food market: a censored equation system approach," Food Policy, Elsevier, vol. 29(6), pages 643-658, December.
    26. 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.
    27. Albert J. Reed & J. William Levedahl & Charles Hallahan, 2005. "The Generalized Composite Commodity Theorem and Food Demand Estimation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 28-37.
    28. Hamrick, Karen & Okrent, Abigail, 2014. "The Role of Time in Fast-Food Purchasing Behavior in the United States," Economic Research Report 191034, United States Department of Agriculture, Economic Research Service.
    29. David Stuckler & Martin McKee & Shah Ebrahim & Sanjay Basu, 2012. "Manufacturing Epidemics: The Role of Global Producers in Increased Consumption of Unhealthy Commodities Including Processed Foods, Alcohol, and Tobacco," PLOS Medicine, Public Library of Science, vol. 9(6), pages 1-8, June.
    30. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    31. Todd, Jessica E., 2014. "Changes in Eating Patterns and Diet Quality Among Working-Age Adults, 2005-2010," Economic Research Report 262214, United States Department of Agriculture, Economic Research Service.
    32. Soberon-Ferrer, Horacio & Dardis, Rachel, 1991. "Determinants of Household Expenditures for Services," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(4), pages 385-397, March.
    33. Jekanowski, Mark D. & Binkley, James K. & Eales, James S., 2001. "Convenience, Accessibility, And The Demand For Fast Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-17, July.
    34. Duffy, Martyn, 2003. "Advertising and food, drink and tobacco consumption in the United Kingdom: a dynamic demand system," Agricultural Economics, Blackwell, vol. 28(1), pages 51-70, January.
    35. Lin, Biing-Hwan & Guthrie, Joanne F., 2012. "Nutritional Quality of Food Prepared at Home and Away From Home, 1977-2008," Economic Information Bulletin 142361, United States Department of Agriculture, Economic Research Service.
    36. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    37. 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.
    38. Nayga, Rodolfo M., Jr., 1996. "Wife'S Labor Force Participation And Family Expenditures For Prepared Food, Food Prepared At Home, And Food Away From Home," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), pages 1-8, October.
    39. 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.
    40. Brian P. Poi, 2008. "Demand-system estimation: Update," Stata Journal, StataCorp LP, vol. 8(4), pages 554-556, December.
    41. Pedroni, Peter, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 653-670, Special I.
    42. Berndt, Ernst R & Savin, N Eugene, 1975. "Estimation and Hypothesis Testing in Singular Equation Systems with Autoregressive Disturbances," Econometrica, Econometric Society, vol. 43(5-6), pages 937-957, Sept.-Nov.
    43. Benjamin Sexauer, 1979. "The Effect of Demographic Shifts and Changes in the Income Distribution on Food-Away-from-Home Expenditure," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 1046-1057.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Qi & Gallardo, R. Karina, 2018. "Willingness and Purchase Decision on Refrigerated Ready-to-eat Meals," 2018 Annual Meeting, August 5-7, Washington, D.C. 273992, Agricultural and Applied Economics Association.
    2. Alan de Brauw & Sylvan Herskowitz, 2021. "Income Variability, Evolving Diets, and Elasticity Estimation of Demand for Processed Foods in Nigeria," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1294-1313, August.
    3. Okrent, Abigail & Zeballos, Eliana, 2022. "COVID-19 Working Paper: Consumer Food Spending Changes During the COVID-19 Pandemic," USDA Miscellaneous 333545, United States Department of Agriculture.
    4. Miroslava Knapková & Mariana Považanová, 2021. "(Un)Sustainability of the Time Devoted to Selected Housework—Evidence from Slovakia," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    5. Katia Fadeyev & Sayaka Nagao-Sato & Marla Reicks, 2021. "Nutrient and Food Group Intakes among U.S. Children (2–5 Years) Differ by Family Income to Poverty Ratio, NHANES 2011–2018," IJERPH, MDPI, vol. 18(22), pages 1-10, November.
    6. Dash, Pradyumna & Rohit, Abhishek Kumar & Devaguptapu, Adviti, 2020. "Assessing the (de-)anchoring of households’ long-term inflation expectations in the US," Journal of Macroeconomics, Elsevier, vol. 63(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hamrick, Karen & Okrent, Abigail, 2014. "The Role of Time in Fast-Food Purchasing Behavior in the United States," Economic Research Report 191034, United States Department of Agriculture, Economic Research Service.
    2. 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.
    3. Rahkovsky, Ilya & Jo, Young & Carlson, Andrea, 2018. "Consumers Balance Time and Money in Purchasing Convenience Foods," Economic Research Report 276227, United States Department of Agriculture, Economic Research Service.
    4. Fujioka Soichiro & Fukushige Mototsugu, 2019. "The Future of Demand for Food Away from Home and Prepared Food: Cohort and Age Effects in Japan," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(1), pages 1-17, May.
    5. Liddle, Brantley, 2013. "Population, Affluence, and Environmental Impact Across Development: Evidence from Panel Cointegration Modeling," MPRA Paper 52088, University Library of Munich, Germany.
    6. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    7. Liddle, Brantley, 2012. "The importance of energy quality in energy intensive manufacturing: Evidence from panel cointegration and panel FMOLS," Energy Economics, Elsevier, vol. 34(6), pages 1819-1825.
    8. Asongu Simplice, 2013. "Does Money Matter in Africa? New Empirics on Long- and Short-run Effects of Monetary Policy on Output and Prices," Working Papers of the African Governance and Development Institute. 13/005, African Governance and Development Institute..
    9. M. Agovino, 2014. "What are the main explanations of occupational diseases and accidents at work in the agricultural sector? A panel analysis for Italian regional data," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(2), pages 1045-1073, March.
    10. Md Shahiduzzaman & Allan Layton & Khorshed Alam, 2015. "On the contribution of information and communication technology to productivity growth in Australia," Economic Change and Restructuring, Springer, vol. 48(3), pages 281-304, November.
    11. In Choi, 2013. "Panel Cointegration," Working Papers 1208, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    12. George Davis, 2014. "Food at home production and consumption: implications for nutrition quality and policy," Review of Economics of the Household, Springer, vol. 12(3), pages 565-588, September.
    13. Abdilahi Ali & Baris Alpaslan, 2013. "Do Migrant Remittances Complement Domestic Investment? New Evidence from Panel Cointegration," Economics Discussion Paper Series 1308, Economics, The University of Manchester.
    14. Kahia, Montassar & Ben Aissa, Mohamed Safouane, 2014. "Renewable and non-renewable energy consumption and economic growth: Evidence from MENA Net Oil Exporting Countries," MPRA Paper 80776, University Library of Munich, Germany.
    15. Kasman, Adnan & Duman, Yavuz Selman, 2015. "CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: A panel data analysis," Economic Modelling, Elsevier, vol. 44(C), pages 97-103.
    16. Rudra P. Pradhan & Mak B. Arvin & John H. Hall & Sara E. Bennett, 2018. "Mobile telephony, economic growth, financial development, foreign direct investment, and imports of ICT goods: the case of the G-20 countries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 279-310, June.
    17. Huaping Sun & Love Enna & Augustine Monney & Dang Khoa Tran & Ehsan Rasoulinezhad & Farhad Taghizadeh-Hesary, 2020. "The Long-Run Effects of Trade Openness on Carbon Emissions in Sub-Saharan African Countries," Energies, MDPI, vol. 13(20), pages 1-18, October.
    18. Akram, Vaseem & Rath, Badri Narayan, 2020. "What do we know about fiscal sustainability across Indian states?," Economic Modelling, Elsevier, vol. 87(C), pages 307-321.
    19. Jaunky, Vishal Chandr, 2012. "Is there a material Kuznets curve for aluminium? evidence from rich countries," Resources Policy, Elsevier, vol. 37(3), pages 296-307.
    20. Abdilahi Ali & Baris Alpaslan, 2017. "Is There an Investment Motive Behind Remittances? Evidence From Panel Cointegration," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(1), pages 63-82, January-M.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersrr:262195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.