Supermarket Revolution and Food Demand in China

This paper aims at examining the impact of supermarkets on the Chinese dietary structure. Using the China Health and Nutrition Survey data, the effects of the distance to the nearest supermarket on individual food consumption are estimated. While the existing research focuses mostly on demand-side factors during the dietary transition, this study takes up a new angle by studying the influence of supermarkets, a supply-side factor. A few findings emerge. First, the distance to a modern supermarket exhibits different effects on various food consumption. The proximity of supermarkets is associated with a higher consumption level of animal foods, fruit, and dairy products, but a lower consumption level of cereal and vegetables. Second, individuals with high income appear to consume more of all food categories except for cereal. Third, better educated, urban individuals consume a much higher level of animal foods, fruit, and dairy products than their less educated, rural counterparts.