Organic labelling, private label, and U.S. household demand for fluid milk

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17 Scopus citations

Abstract

The U.S. fluid milk market has been experiencing two trends in the recent decade: the fast growth of private label milk and organic milk. Using the data from Nielsen Homescan Panel, we estimate a censored demand system to study the demand relations among types of milk differentiated by brand types and organic status. We find that sociodemographic factors still play important roles in household choice of milk types, and fluid milk, as a whole, is an inferior good. Moreover, as income increases, households are more likely to shift from buying conventional milk to organic milk and from private label conventional milk to branded conventional milk, as indicated by the asymmetric cross price elasticities. Corresponding implications for milk producers and marketers are discussed.

Original languageEnglish
Pages (from-to)3039-3050
Number of pages12
JournalApplied Economics
Volume50
Issue number28
DOIs
StatePublished - Jun 15 2018

Bibliographical note

Publisher Copyright:
© 2017 Informa UK Limited, trading as Taylor & Francis Group.

Keywords

  • Private label
  • censored demand system
  • elasticities
  • milk
  • organic

ASJC Scopus subject areas

  • Economics and Econometrics

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