Assessing the demand for a functional food product: Is there cannibalization in the orange juice category?

Yan Yuan, Oral Capps, Rodolfo M. Nayga

Research output: Contribution to journalReview article

13 Citations (Scopus)

Abstract

The demand for functional foods has increased notably in recent years due to growing consumer interest in diet and health issues. Currently, the food industry is introducing many types of new food products with functional attributes. Consequently, cannibalization is a critical issue for firms that offer multiple products within a certain product category. The identification and assessment of cannibalization are integral factors when making strategic decisions about new product introductions. Using scanner data from Information Resources, Inc. (IRI), pertaining to a particular functional food, namely a phytosterol-enriched product for orange juice, we find that no cannibalization effects exist with respect to its introduction. We also provide estimates of own-price and cross-price elasticities of the orange juice category using a synthetic demand system.

Original languageEnglish
Pages (from-to)153-165
Number of pages13
JournalAgricultural and Resource Economics Review
Volume38
Issue number2
DOIs
Publication statusPublished - 2009 Oct

Keywords

  • Cannibalization
  • Functional foods
  • Orange juice industry
  • Phytosterols
  • Synthetic demand system

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics

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