Demand for Varied Fruit and Vegetable Colors

The objective of this study is to assess the demand for fruit and vegetable (F&V) colors. Consumer preferences for F&V colors have yet to be examined though nutritional health benefits are associated with color and the USDA has promoted consumption based on the F&V color. Supermarket scanner receipt data from an independent supermarket in a primarily Hispanic neighborhood in the Midwest was collected from May 2014 through January 2015 and transformed into a panel dataset of customers’ two-week purchases. F&V were divided into four color classes: green, white, red/blue/purple, and yellow/orange. The Quadratic Almost Ideal Demand System adjusted to account for the large proportions of non-purchases and to control for additional explanatory variables was used for analysis. F&V weak separability was tested and failed; hence, eight color expenditure share equations (four for fruits and four for vegetables) were estimated within one model. Expenditures and prices significantly impact the demand for the F&V colors. Consumers are most price responsive to white F&V and most expenditure responsive to the red/blue/purple and yellow/orange F&V.