National Demand for Fresh Organic and Conventional Vegetables: Scanner Data Evidence

Using AC Nielsen scanner data on U.S. household consumption of selected fresh vegetables from 1999 to 2003, this study provides an overview of the organic fresh vegetable market by investigating market shares and price premiums of selected organic fresh vegetables and estimating the interrelationship between consumer demand for organic and conventional fresh vegetables. The linear Almost Ideal Demand System was found to fit the data best among alternative demand models. Expenditure, own, and cross price elasticities were computed for both organic and conventional vegetables based on the best fitting model.