IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v37y2021i4p731-748.html
   My bibliography  Save this article

Is competition among soft drinks, juices, and other major beverage categories responsible for reducing Americans' milk consumption?

Author

Listed:
  • Hayden Stewart
  • Fred Kuchler
  • William Hahn

Abstract

US per capita milk consumption has been falling since the 1940s and falling at an accelerated rate in recent years. One possible reason is competition between it and other types of beverages. In this study, we determine whether changes in beverage prices are in a direction and of a sufficient magnitude for consumption trends to be explained by price competition between milk and other beverages. They are not. We also estimate a vector autoregressive model using data on households' average weekly purchases of milk and four other, major beverage categories for a very general test of whether any increase in sales of those other beverages would come at milk's expense. Results again suggest that competition between milk and the identified other major beverages is not responsible for milk's accelerated decline, and there is a need for the research community to investigate other possible explanations. [EconLit Citations: D12, Q11, Q18].

Suggested Citation

  • Hayden Stewart & Fred Kuchler & William Hahn, 2021. "Is competition among soft drinks, juices, and other major beverage categories responsible for reducing Americans' milk consumption?," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 731-748, October.
    • Handle: RePEc:wly:agribz:v:37:y:2021:i:4:p:731-748
    DOI: 10.1002/agr.21706
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/agr.21706
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.21706?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Edward C. Jaenicke & Andrea C. Carlson, 2015. "Estimating and Investigating Organic Premiums for Retail‐Level Food Products," Agribusiness, John Wiley & Sons, Ltd., vol. 31(4), pages 453-471, October.
    2. Dora Gicheva & Justine Hastings & Sofia Villas-Boas, 2010. "Investigating Income Effects in Scanner Data: Do Gasoline Prices Affect Grocery Purchases?," American Economic Review, American Economic Association, vol. 100(2), pages 480-484, May.
    3. Kuhns, Annemarie & Saksena, Michelle, 2017. "Food Purchase Decisions of Millennial Households Compared to Other Generations," Economic Information Bulletin 291931, United States Department of Agriculture, Economic Research Service.
    4. Fred Kuchler & Abebayehu Tegene & J. Michael Harris, 2005. "Taxing Snack Foods: Manipulating Diet Quality or Financing Information Programs?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(1), pages 4-20.
    5. Chen Zhen & Eric A. Finkelstein & James M. Nonnemaker & Shawn A. Karns & Jessica E. Todd, 2014. "Predicting the Effects of Sugar-Sweetened Beverage Taxes on Food and Beverage Demand in a Large Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 1-25.
    6. Binod Khanal & Rigoberto A. Lopez & Azzeddine Azzam, 2020. "Testing local bias in food consumption: The case of fluid milk," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 339-344, April.
    7. James H. Stock & Mark W. Watson, 2001. "Vector Autoregressions," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 101-115, Fall.
    8. Stewart, Hayden & Dong, Diansheng & Carlson, Andrea, 2012. "Is Generational Change Contributing to the Decline in Fluid Milk Consumption?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(3), pages 1-20.
    9. Okrent, Abigail M. & MacEwan, Joanna P., 2014. "The Effects of Prices, Advertising, Expenditures, and Demographics on Demand for Nonalcoholic Beverages," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(1), pages 31-52, April.
    10. Okrent, Abigail M. & MacEwan, Joanna P., 2014. "The Effects of Prices, Advertising, Expenditures, and Demographics on Demand for Nonalcoholic Beverages," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0, pages 1-22.
    11. Okrent, Abigail M. & MacEwan, Joanna P., 2014. "The Effects of Prices, Advertising, Expenditures, and Demographics on Demand for Nonalcoholic Beverages," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(01), pages 1-22, April.
    12. Hamrick, Karen S. & McClelland, Ket, 2016. "Americans' Eating Patterns and Time Spent on Food: The 2014 Eating & Health Module Data," Economic Information Bulletin 262141, United States Department of Agriculture, Economic Research Service.
    13. Heng, Yan & House, Lisa A. & Kim, Hyeyoung, 2018. "The Competition of Beverage Products in Current Market: A Composite Demand Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 47(1), pages 118-131, April.
    14. Bentley, Jeanine, 2014. "Trends in U.S. Per Capita Consumption of Dairy Products, 1970-2012," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 05, pages 1-1, June.
    15. Stewart, Hayden & Dong, Diansheng & Carlson, Andrea, 2013. "Why Are Americans Consuming Less Fluid Milk? A Look at Generational Differences in Intake Frequency," Economic Research Report 262223, United States Department of Agriculture, Economic Research Service.
    16. Martinez, Stephen W. & Levin, David, 2017. "An Assessment of Product Turnover in the U.S. Food Industry and Effects on Nutrient Content," Economic Information Bulletin 283706, United States Department of Agriculture, Economic Research Service.
    17. LaFrance, Jeffrey T., 1991. "When Is Expenditure "Exogenous" In Separable Demand Models?," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), pages 1-14, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Capps, Oral & Wang, Lingxiao, 2024. "U.S. Household Demand System Analysis for Dairy Milk Products and Plant-Based Milk Alternatives," 2024 Annual Meeting, July 28-30, New Orleans, LA 343575, Agricultural and Applied Economics Association.
    2. Stewart, Hayden & Kuchler, Fred & Dong, Diansheng & Cessna, Jerry, 2021. "Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18," USDA Miscellaneous 316500, United States Department of Agriculture.
    3. Stewart, Hayden & Kuchler, Fred & Dong, Diansheng & Cessna, Jerry, 2021. "Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18," Economic Research Report 327183, United States Department of Agriculture, Economic Research Service.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stewart, Hayden & Kuchler, Fred & Dong, Diansheng & Cessna, Jerry, 2021. "Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18," Economic Research Report 327183, United States Department of Agriculture, Economic Research Service.
    2. Stewart, Hayden & Kuchler, Fred & Dong, Diansheng & Cessna, Jerry, 2021. "Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18," USDA Miscellaneous 316500, United States Department of Agriculture.
    3. Leschewski, Andrea & Weatherspoon, Dave D. & Kuhns, Annemarie, 2016. "A Segmented Hedonic Analysis of the Nutritional Composition of Fruit Beverages," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-22, August.
    4. Mendez, Samara & Peacock, Jacob & The Humane League Labs, 2021. "Exploring the impact of plant-based milk alternatives in the US," OSF Preprints tdghp, Center for Open Science.
    5. Khanal, Binod & Lopez, Rigoberto, 2021. "Demand for Plant Based Beverages and Market Competition in Fluid Milk Markets," 2021 Conference, August 17-31, 2021, Virtual 315369, International Association of Agricultural Economists.
    6. Samane Zare & Mahdi Asgari & Timothy Woods & Yuqing Zheng, 2020. "Consumer proximity and brand loyalty in craft soda marketing: A case study of Ale‐8‐One," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 522-541, October.
    7. Kim, GwanSeon & Zheng, Yuqing, 2017. "U.S. Non-alcoholic Beverage Demand: Evidence from AIDS Model with Dynamic Effect," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 35(01), April.
    8. Biondi, Beatrice & Castiglione, Concetta & Mazzocchi, Mario, 2021. "Demand drivers and changes in food-related emissions in the UK: A decomposition approach," Ecological Economics, Elsevier, vol. 188(C).
    9. Bo Chen & Wuyang Hu & Qingjie Zhou, 2020. "Effects of local and national advertising across brands: the case of yogurt in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1260-1281, October.
    10. Sule Birim & Ipek Kazancoglu & Sachin Kumar Mangla & Aysun Kahraman & Yigit Kazancoglu, 2024. "The derived demand for advertising expenses and implications on sustainability: a comparative study using deep learning and traditional machine learning methods," Annals of Operations Research, Springer, vol. 339(1), pages 131-161, August.
    11. Jakina Debnam, 2017. "Selection Effects and Heterogeneous Demand Responses to the Berkeley Soda Tax Vote," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(5), pages 1172-1187.
    12. Hovhannisyan, Vardges, 2016. "New Evidence On The Structure Of Food Demand In China: An Easi Demand Model Estimated Via Panel Data Techniques," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236889, Agricultural and Applied Economics Association.
    13. Lin, Biing-Hwan & Buzby, Jean C. & Anekwe, Tobenna D. & Bentley, Jeanine T., 2016. "U.S. Food Commodity Consumption Broken Down by Demographics, 1994-2008," Economic Research Report 262198, United States Department of Agriculture, Economic Research Service.
    14. Nikodinoska, Dragana & Schröder, Carsten, 2016. "On the emissions–inequality and emissions–welfare trade-offs in energy taxation: Evidence on the German car fuels tax," Resource and Energy Economics, Elsevier, vol. 44(C), pages 206-233.
    15. Xiao Dong & H. Allen Klaiber & Zoë Plakias, 2023. "I scream, you scream, we all scream for local ice cream: Consumer preferences for locally processed foods," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 51-64, January.
    16. Huang, Lu & Liu, Yizao, 2017. "Health information and consumer learning in the bottled water market," International Journal of Industrial Organization, Elsevier, vol. 55(C), pages 1-24.
    17. Mendis, Sachintha & Hovhannisyan, Vardges, 2017. "Assessing Provincial-Level Demand For Food Quantity And Quality In China: An Easi Demand System Approach," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252797, Southern Agricultural Economics Association.
    18. Nicole Darmon & Anne Lacroix & Laurent Muller & Bernard Ruffieux, 2014. "Food price policies improve diet quality while increasing socioeconomic inequalities in nutrition," Post-Print hal-01845621, HAL.
    19. Vinodh Madhavan & Partha Ray, 2019. "Price and Volatility Linkages Between Indian Stocks and Their European GDRs," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 18(2_suppl), pages 213-237, August.
    20. Biqing Cai & Jiti Gao & Dag Tjøstheim, 2017. "A New Class of Bivariate Threshold Cointegration Models," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 35(2), pages 288-305, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:37:y:2021:i:4:p:731-748. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.