Demand for foodstuffs and nutrients under urbanization in Zambia and Tanzania

Understanding food demand patterns is critical for developing countries in Sub-Saharan Africa (SSA), which are facing increasing urbanization, intensifying climate change, and rapid transitions in food production systems. This study models food demand in Zambia and Tanzania using data from the Living Conditions Monitoring Survey (LCMS) (2015 and 2022) and the Living Standards Measurement Survey (LSMS) (2015 and 2021). This study applies the Quadratic Almost Ideal Demand System (QUAIDS) model to analyze demand behavior and calculate expenditure and price elasticities of both food and nutrition. Urbanization is linked to significant shifts in dietary preferences and greater sensitivity to the prices of non-staple, nutrient-dense foods, reflecting the diversifying food demand in urbanized regions. Households allocate more resources to calories with increases in income, but the rate of increase slows as basic caloric needs are met. Conversely, expenditure nutrition elasticity for Vitamin B12 is particularly high, as rising incomes enable households to spend more on animal-based foods such as meat, fish, eggs, and dairy. Once basic caloric needs are satisfied, additional income is more likely to be directed toward diversifying the diet with higher-value, nutrient-dense foods rather than increasing carbohydrate consumption. The positive expenditure elasticities for both food consumption and nutrient intake in both countries emphasize that increasing household income remains a crucial strategy for improving food security.