Will Changing Demographics Affect U.S. Cheese Demand?

U.S. cheese consumption has grown considerably over the last three decades. Using a censored demand model and Nielsen Homescan retail data, this study identifies price and non-price factors affecting the demand for differentiated cheese products. Own-price and expenditure elasticities for all of the cheese products are statistically significant and elastic. Results also reveal that a strong substitution relationship exists among all cheese products. Although demographic influences are generally smaller than those related to prices and expenditures, empirical findings show that household size, college educated female heads of household who are age 40 and older, residing in the South, Central, and Western regions of the United States, as well as Black heads of household, have positive statistically significant effects on consumers’ cheese purchases.

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Journal Article
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Published in:
Journal of Agricultural and Applied Economics, Volume 43, Number 2
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JEL Codes:
C25; D12; Q11

 Record created 2017-04-01, last modified 2018-01-22

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