Demand for Food Quantity and Quality in China

USDA Economic Research Report No. 32

40 Pages Posted: 13 Jan 2011

See all articles by H. Frederick Gale

H. Frederick Gale

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Kuo Huang

affiliation not provided to SSRN

Date Written: January 1, 2007

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.

Keywords: China, Food, Consumption, Demand, Income, Elasticities, Engel Curve, Households, Rural, Urban

JEL Classification: D12

Suggested Citation

Gale, H. Frederick and Huang, Kuo, Demand for Food Quantity and Quality in China (January 1, 2007). USDA Economic Research Report No. 32, Available at SSRN: https://ssrn.com/abstract=1739091

H. Frederick Gale (Contact Author)

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States
202-694-5215 (Phone)

Kuo Huang

affiliation not provided to SSRN ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
893
Abstract Views
3,329
rank
31,254
PlumX Metrics