Insights into the U.S. Market for Cereals Containing Hemp: Evidence from Scanner Data

Amid an evolving regulatory framework and increasing consumer interest in hemp as a versatile agricultural commodity, this study examines the factors influencing consumer spending behavior toward hemp-inclusive cereal products using consumer household scanner data from 2017 to 2019. We created a consumer spending strength index, which measures the strength of average monthly hemp-inclusive cereal expenditures. The households were then categorized based on the strength of their spending patterns. Additionally, we developed an event study to measure the changes in household spending patterns over time. Findings revealed that demographic and socioeconomic characteristics such as age, household size, and race were significantly associated with hemp-inclusive cereal purchasing behavior. Changes in spending patterns highlighted the importance of product awareness and pricing in influencing consumer choices, with implications for marketing strategies. The novelty of this study lies in its focus on the strength of consumer engagement with hemp-inclusive cereals rather than a purchaser and non-purchaser framework.