DEMAND FOR FOOD QUANTITY AND QUALITY IN CHINA

H. Frederick Gale · Kuo S. Huang

118 citations0/0 files storedRePEc: Research Papers in Economics

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Economics of Agriculture and Food Markets Nutrition, Health and Food Behavior Consumer Market Behavior and Pricing

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.

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References

1997Quadratic Engel Curves and Consumer Demand 1956The Analysis of Family Budgets 2000Structural Change in the Impact of Income on Food Consumption in China, 1989–1993 2006Getting Rich and Eating Out: Consumption of Food Away from Home in Urban China 2003Changing tastes: the adoption of new food choices in post-reform China

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