Impact of Food Prices and Income Growth on Household Food Consumption

DOI: https://doi.org/10.62517/jmsd.202612122

Author(s)

Chengshuo Zhao1,2, Jiejie Cao1,2, Wen Yu1,*

Affiliation(s)

1Agricultural Information Institute, Chinese Academy of Agricultural Sciences, Beijing, China 2Graduate School of Chinese Academy of Agricultural Sciences, Beijing, China *Corresponding Author

Abstract

As residents' incomes rise and consumption levels increase, the food consumption structure of China's population is undergoing a gradual optimization process. To forecast future food consumption trends, this study selected indicators including consumption volume, prices, and per capita income from 31 provinces and municipalities across China from 2015 to 2023. Using the multiple linear regression model, a series of price elasticities of demand and income elasticities of demand are obtained. The analysis reveals that income significantly influences demand for various food categories, with varying degrees of impact: aquatic products (1.32%), fresh fruits (0.73%), eggs (0.69%), vegetables (0.56%), poultry (0.52%), grains (0.24%), and meat (0.21%). Regarding price elasticity, food consumption is correlated not only with its own price but also with the prices of other food categories. As residents' incomes rise in the future, it is necessary to care about the development of industries related to aquatic products while accelerating the growth of sectors such as fresh fruits, vegetables, and eggs.

Keywords

Food Consumption Structure; Multiple Linear Regression; Elasticities of Demand

References

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