Dharmasena, Kalu Arachchillage Senarath (2010-05). The Non-alcoholic Beverage Market in the United States: Demand Interrelationships, Dynamics, Nutrition Issues and Probability Forecast Evaluation. Doctoral Dissertation. Thesis uri icon

abstract

  • There are many different types of non-alcoholic beverages (NAB) available in the United States today compared to a decade ago. Additionally, the needs of beverage consumers have evolved over the years centering attention on functionality and health dimensions. These trends in volume of consumption are a testament to the growth in the NAB industry. Our study pertains to ten NAB categories. We developed and employed a unique cross-sectional and time-series data set based on Nielsen Homescan data associated with household purchases of NAB from 1998 through 2003. First, we considered demographic and economic profiling of the consumption of NAB in a two-stage model. Race, region, age and presence of children and gender of household head were the most important factors affecting the choice and level of consumption. Second, we used expectation-prediction success tables, calibration, resolution, the Brier score and the Yates partition of the Brier score to measure the accuracy of predictions generated from qualitative choice models used to model the purchase decision of NAB by U.S. households. The Yates partition of the Brier score outperformed all other measures. Third, we modeled demand interrelationships, dynamics and habits of NAB consumption estimating own-price, cross-price and expenditure elasticities. The Quadratic Almost Ideal Demand System, the synthetic Barten model and the State Adjustment Model were used. Soft drinks were substitutes and fruit juices were complements for most of non-alcoholic beverages. Investigation of a proposed tax on sugar-sweetened beverages revealed the importance of centering attention not only to direct effects but also to indirect effects of taxes on beverage consumption. Finally, we investigated factors affecting nutritional contributions derived from consumption of NAB. Also, we ascertained the impact of the USDA year 2000 Dietary Guidelines for Americans associated with the consumption of NAB. Significant factors affecting caloric and nutrient intake from NAB were price, employment status of household head, region, race, presence of children and the gender of household food manager. Furthermore, we found that USDA nutrition intervention program was successful in reducing caloric and caffeine intake from consumption of NAB. The away-from-home intake of beverages and potential impacts of NAB advertising are not captured in our work. In future work, we plan to address these limitations.
  • There are many different types of non-alcoholic beverages (NAB) available in

    the United States today compared to a decade ago. Additionally, the needs of beverage

    consumers have evolved over the years centering attention on functionality and health

    dimensions. These trends in volume of consumption are a testament to the growth in the

    NAB industry.

    Our study pertains to ten NAB categories. We developed and employed a unique

    cross-sectional and time-series data set based on Nielsen Homescan data associated with

    household purchases of NAB from 1998 through 2003.

    First, we considered demographic and economic profiling of the consumption of

    NAB in a two-stage model. Race, region, age and presence of children and gender of

    household head were the most important factors affecting the choice and level of

    consumption.

    Second, we used expectation-prediction success tables, calibration, resolution,

    the Brier score and the Yates partition of the Brier score to measure the accuracy of predictions generated from qualitative choice models used to model the purchase

    decision of NAB by U.S. households. The Yates partition of the Brier score

    outperformed all other measures.

    Third, we modeled demand interrelationships, dynamics and habits of NAB

    consumption estimating own-price, cross-price and expenditure elasticities. The

    Quadratic Almost Ideal Demand System, the synthetic Barten model and the State

    Adjustment Model were used. Soft drinks were substitutes and fruit juices were

    complements for most of non-alcoholic beverages. Investigation of a proposed tax on

    sugar-sweetened beverages revealed the importance of centering attention not only to

    direct effects but also to indirect effects of taxes on beverage consumption.

    Finally, we investigated factors affecting nutritional contributions derived from

    consumption of NAB. Also, we ascertained the impact of the USDA year 2000 Dietary

    Guidelines for Americans associated with the consumption of NAB. Significant factors

    affecting caloric and nutrient intake from NAB were price, employment status of

    household head, region, race, presence of children and the gender of household food

    manager. Furthermore, we found that USDA nutrition intervention program was

    successful in reducing caloric and caffeine intake from consumption of NAB.

    The away-from-home intake of beverages and potential impacts of NAB

    advertising are not captured in our work. In future work, we plan to address these

    limitations.

publication date

  • May 2010