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Unraveling Demand for Dairy-Alternative Beverages in the United States: The Case of Soymilk

Published online by Cambridge University Press:  15 September 2016

Senarath Dharmasena  and
Oral Capps Jr.
Senarath Dharmasena*
Affiliation:
Agribusiness, Food, and Consumer Economics Research Center in the Department of Agricultural Economics at Texas A&M University
Oral Capps Jr.
Affiliation:
Agribusiness, Food, and Consumer Economics Research Center in the Department of Agricultural Economics at Texas A&M University
*
Correspondence: Senarath Dharmasena ▪ AFCERC ▪ Department of Agricultural Economics ▪ Texas A&M University ▪ 2124 TAMU ▪ College Station, TX 77843-2124 ▪ Phone 979.862.2894 ▪ Email sdharmasena@tamu.edu.
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Abstract

Soymilk is one of the fastest growing categories in the U.S dairy alternative functional beverage market. Using household-level purchase data from Nielsen's 2008 Homescan panel and the Tobit econometric procedure, we estimate conditional and unconditional own-price, cross-price, and income elasticities for soymilk, white milk, and flavored milk. Income, age, employment status, education level, race, ethnicity, region, and presence of children in a household are significant drivers of demand for soymilk. White milk and flavored milk are competitors for soymilk, and soymilk is a competitor for white milk. Strategies for pricing and targeted marketing of soymilk are also discussed.

Keywords

censored demanddairy alternative beveragesflavored milkfunctional beveragesNielsen Homescan datasoymilkTobit modelwhite milk
Type
Selected Papers
Information
Agricultural and Resource Economics Review , Volume 43 , Issue 1 , April 2014 , pp. 140 - 157
Copyright
Copyright © 2014 Northeastern Agricultural and Resource Economics Association 

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