US household demand system analysis for dairy milk products and plant‐based milk alternatives

Abstract

Using the QUAIDS model, we analyze interrelationships among dairy milk and plant‐based milk alternatives (PBMA) for US households from 2018 to 2020 using NielsenIQ. We adopt the Shonkwiler–Yen methodology to account for censored observations. PBMA demand is inelastic, while milk products show elastic demand. PBMA substitutes for traditional white milk and organic milk. Traditional flavored milk and PBMA as well as lactose‐free and organic milk are complements. PBMA and lactose‐free milk are independent goods. Demographic factors like income, household size, and education significantly affect budget share, alongside women, infants, and children participation and the pandemic.