The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food

In light of proposals to improve diets by shifting food prices, it is important to understand how price changes affect demand for various foods. We reviewed 160 studies on the price elasticity of demand for major food categories to assess mean elasticities by food category and variations in estimate...

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Bibliographic Details
Published in:American journal of public health (1971) 2010-02, Vol.100 (2), p.216-222
Main Authors: Andreyeva, Tatiana, Long, Michael W, Brownell, Kelly D
Format: Article
Language:English
Subjects:
Beverages
Biological and medical sciences
Consumer Behavior - economics
Costs and Cost Analysis
Economic models
Economic Recession
Elasticity of demand
Food
Food - economics
Food Industry - economics
Food Preferences
Food prices
Fruits
Government, Politics, and Law
Humans
Medical sciences
Miscellaneous
Models, Econometric
Nutrition
Nutrition Policy
Price elasticity
Public health
Public health. Hygiene
Public health. Hygiene-occupational medicine
Purchasing
Studies
Systematic review
Taxes - economics
United States
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Summary:In light of proposals to improve diets by shifting food prices, it is important to understand how price changes affect demand for various foods. We reviewed 160 studies on the price elasticity of demand for major food categories to assess mean elasticities by food category and variations in estimates by study design. Price elasticities for foods and nonalcoholic beverages ranged from 0.27 to 0.81 (absolute values), with food away from home, soft drinks, juice, and meats being most responsive to price changes (0.7-0.8). As an example, a 10% increase in soft drink prices should reduce consumption by 8% to 10%. Studies estimating price effects on substitutions from unhealthy to healthy food and price responsiveness among at-risk populations are particularly needed.
ISSN:0090-0036
1541-0048
DOI:10.2105/AJPH.2008.151415