Demand for Food Quantity and Quality in China
by
Fred Gale and
Kuo Huang
Economic Research Report No. (ERR-32) 40 pp, January 2007
cover image for err32
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
In this publication...
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Report summary, Pdf file 138 kb | HTML
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Abstract, Acknowledgments, Contents, and Summary, Pdf file 196 kb
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Introduction, Pdf file 62 kb
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Chinese Household Food Spending and Income, Pdf file 110 kb
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Engel Model of Food Consumption and Expenditure, Pdf file 89 kb
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Results, Pdf file 118 kb
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Conclusion, Pdf file 58 kb
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References, Pdf file 69 kb
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Appendix, Pdf file 130 kb
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Entire report, Pdf file 487 kb
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