Consumption diversity and demand elasticity in animal-sourced foods: a cross-country analysis from Asia

Abstract

This study employed the Almost Ideal Demand System (AIDS) to examine the consumption patterns of animal-sourced foods (ASFs) in Asian countries. The findings indicate a positive but inelastic income elasticity of demand. Nevertheless, the price elasticity estimation remains inconclusive. Our study yielded additional insights into regional consumption patterns, with East and Southeast Asian countries showing lower levels of consumption diversity. Additionally, we identified an inverted U-shaped relationship between consumption elasticity and income levels. Overall, this study expands our understanding of ASFs consumption in Asia and offers some practical recommendations. From a policy perspective, a reduction in ASF consumption could lead to lower nutrient intakes. Therefore, some policies are required, including supply chain interventions, providing food subsidies/aids, and ensuring the affordability of alternative plant-based protein sources. In a business context, three aspects should be considered before deciding to expand: the market profile, consumption diversity, and cross-country elasticity.