ISHS Acta Horticulturae 203: IX Symposium on Horticultural Economics, XXII IHC
DEMAND ANALYSIS FOR BEVERAGES WITH EMPHASIS ON HORTICULTURAL CROPS |
| Authors: | A. E. Levi, R. J. Folwell |
| DOI: | 10.17660/ActaHortic.1987.203.27 |
| Abstract:
Per capita total beverage demand has increased one gallon per year over the last 20 years in the United States. The consumption patterns among the beverages have also changed. The estimated demand system provides a useful source of specific elasticities for particular commodity interests and a means of assessing the degree of competitiveness and patterns of substitution among various beverages. Most of the beverages have inelastic demands. Segmenting beverages into two groups, alcoholic and nonalcoholic, patterns of substitution and degree of competitiveness were established. Soft drinks were the only nonalcoholic beverage to compete with alcoholic beverages. None of the alcoholic beverages were substitutes for the nonalcoholic beverages. Juice has a high degree of competitiveness with coffee and milk. Among alcoholic beverages, dessert wines whose consumption has decreased by two-thirds appeared as substitutes for table wines, distilled spirits, and malted beverages. Table wines appear to be the only substitute for dessert wines. The income elasticities were all positive except for dessert wines. | |
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