Dynamic Changes in Food Consumption in China: Focusing on the Rice Retail Market

Abstract

AbstractGenerally, economic growth converts the consumption structure of food due to the difference in the income elasticity of demand for each article of food. In addition to income and price, consumer preference also strongly influences the consumption structure of food. In recent China, with the progress of globalization, there has been a move toward a shift to a sustainable food system in addition to a shift to a modern one. Since structural changes in food consumption and in the retail market are the driving forces of the dynamism of food system, it is significant to understand the current situation and clarify the issues of food system transition for policy-making.The purpose of this study is to capture the dynamic changes in food consumption in China by focusing on the rice retail market. Specifically, we introduce hedonic approach to analyze the factors of price formation using the information on e-commerce of rice for verifying our two hypotheses. These are “China’s rice retail market is in a monopolistic competition characterized by product differentiation” (H1) and “The Meaning-based brands related to the formation of sustainable food market are developing in the rice retail market in China” (H2). In addition, we conduct the survey at retail stores in Shanghai to reinforce our analytical results. Finally, we draw policy implication on the strategy for Japanese rice marketing in China based on our empirical study.KeywordsRice retail marketBrandChinaFood consumptionE-commerce