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Demand For Food Quantity And Quality In China

Author

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  • Gale, H. Frederick, Jr.
  • Huang, Kuo S.

Abstract

As their incomes rise, Chinese consumers are changing their diets and demanding greater quality, convenience, and safety in food. Food expenditures grow faster than quantities purchased as income rises, suggesting that consumers with higher incomes purchase more expensive foods. The top-earning Chinese households appear to have reached a point where the income elasticity of demand for quantity of most foods is near zero. China’s food market is becoming segmented. The demand for quality by high-income households has fueled recent growth in modern food retail and sales of premium-priced food and beverage products. Food expenditures and incomes have grown much more slowly for rural and low-income urban households.

Suggested Citation

  • Gale, H. Frederick, Jr. & Huang, Kuo S., 2007. "Demand For Food Quantity And Quality In China," Economic Research Report 7252, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:7252
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    File URL: http://purl.umn.edu/7252
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    References listed on IDEAS

    as
    1. Hengyun Ma & Jikun Huang & Frank Fuller & Scott Rozelle, 2006. "Getting Rich and Eating Out: Consumption of Food Away from Home in Urban China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 101-119, March.
    2. Veeck, Ann & Burns, Alvin C., 2005. "Changing tastes: the adoption of new food choices in post-reform China," Journal of Business Research, Elsevier, vol. 58(5), pages 644-652, May.
    3. Gale, H. Frederick, Jr., 2006. "Food Expenditures by China's High-Income Households," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(01), March.
    4. Senauer, Benjamin & Goetz, Linde, 2003. "The Growing Middle Class In Developing Countries And The Market For High-Value Food Products," Working Papers 14331, University of Minnesota, The Food Industry Center.
    5. Calvin, Linda & Gale, H. Frederick, Jr. & Hu, Dinghuan & Lohmar, Bryan, 2006. "Food Safety Improvements Underway in China," Amber Waves, United States Department of Agriculture, Economic Research Service, November.
    Full references (including those not matched with items on IDEAS)

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