Demand for Selected Animal Sourced Protein Food Items in United States

Abstract

AbstractConsumers’ preference for food is ever-changing from carbohydrate to protein since protein plays a vital role in the balanced and healthy growth of human being. Among different sources of protein, animal sourced protein foods are getting popularity over time in United States. How demand for animal sourced protein food items are changing, and to be specific which animal food items are preferred by consumers are necessary to know both for producers and suppliers. This study estimates consumer demand for animal sourced food items in U.S. employing linear approximation of AIDS (LA-AIDS) model. Monthly per capita consumption expenditure data on aggregate and disaggregate animal protein items and price indices at national level from 1995 to 2016 have been collected from the Bureau of Economic Analysis of United States. The data consists of monthly per capita consumption expenditure on beef and veal, pork, other meats, poultry, and fish and seafood, and their price indices. The result shows exogenous growth in the budget share of all meat items. Estimated expenditure and cross price elasticities suggest that all goods are normal in nature and substitute to each other. In addition, weak separability test suggests that meat items are separable from non-meat items. The findings of the study would be helpful understanding consumer preferences and behavior for allocating budget among different sources of animal protein.