Hostname: page-component-586b7cd67f-rcrh6 Total loading time: 0 Render date: 2024-11-23T03:07:33.307Z Has data issue: false hasContentIssue false
  • English
  • Français

Demand for Wine and Alcoholic Beverages in the European Union: A Monolithic Market?*

Published online by Cambridge University Press:  04 November 2016

Lorraine Mitchell
Lorraine Mitchell*
Affiliation:
U.S. Department of Agriculture, Economic Research Service, 1400 Independence Ave. SW, Mail Stop 1800, Washington, DC 20250; e-mail: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

The European Union (EU) is a major producer, importer, and consumer of wine, as well as other alcoholic beverages. Although it is possible to characterize demand for the EU as a whole, there is variation across the 27 countries that make up the EU. This research uses a simple standard model of demand and some descriptive statistics to characterize demand for alcoholic beverages and to identify four separate subgroups within the EU with different characteristics of wine and beer demand. Changing tastes over time turn out to be important in determining demand. (JEL Classifications: D12, F1, F15)

Keywords

beerdemandfirst-differences almost ideal demand systemwine
Type
Articles
Information
Journal of Wine Economics , Volume 11 , Issue 3 , December 2016 , pp. 414 - 435
Copyright
Copyright © American Association of Wine Economists 2016 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

The author would like to thank Andrew Muhammad, two anonymous reviewers, and participants at the 2013 American Agricultural Economics Association Annual Meeting in Washington, DC. The views expressed are those of the author(s) and should not be attributed to the Economic Research Service or USDA.

References

Alston, J., Foster, K., and Green, R. (1994). Estimating elasticities with the linear approximate almost ideal demand system: Some Monte Carlo results. Review of Economics and Statistics, 76(2), 351–356.Google Scholar
Anderson, K. (2014). Excise taxes on wines, beers and spirits: An updated international comparison. American Association of Wine Economists (AAWE) Working Paper No. 170. New York: AAWE.Google Scholar
Bakalar, N. (2014). Wine ingredient may have few health benefits. New York Times, May 15, http://well.blogs.nytimes.com/2014/05/15/wine-ingredient-may-have-few-health-benefits/?_r=0.Google Scholar
De Mooij, M. (2003). Consumer behaviour: Convergence and divergence in consumer behaviour: Implications for global advertising. International Journal of Advertising, 22(2), 183–202.Google Scholar
Deaton, A. and Muellbauer, J. (1980). An Almost Ideal Demand System. American Economic Review, 70(3), 312–326.Google Scholar
Elsner, K., and Hartmann, M. (1998). Convergence of food patterns between Eastern and Western Europe. Discussion Paper No. 13. Halle, Germany: Institute of Agricultural Development in Central and Eastern Europe.Google Scholar
Euromonitor Internationall (2012). Statistics retrieved from Euromonitor Passport database.Google Scholar
Euromonitor International (2013). Statistics retrieved from Euromonitor Passport database.Google Scholar
Euromonitor International (2015). Statistics retrieved from Euromonitor Passport database.Google Scholar
European Commission, Directorate General Tax and Customs Union (2015). Excise Duty Tables. ref. 1042.Google Scholar
Fekjaer, H. (2013). Alcohol – a universal preventative agent? A critical analysis. Addiction, 108(12), 2051–2057.CrossRefGoogle ScholarPubMed
Fogarty, J. (2008). The demand for beer, wine, and spirits: Insights from a meta-analysis approach. American Association of Wine Economists (AAWE) Working Paper No. 31. New York: AAWE.Google Scholar
Gallet, C.A. (2007). The demand for alcohol: A meta-analysis of elasticities. Australian Journal of Agricultural and Resource Economics, 51(2), 121–135.Google Scholar
Gil, J., Gracia, A., and Pérez y Peréz, L. (1995). Food consumption and economic development in the European Union. European Review of Agricultural Economics, 22(3), 385–399.Google Scholar
Henneberry, S. (2010). Lecture notes. Agricultural Economics 5733. Stillwater: Oklahoma State UniversityGoogle Scholar
Madden, D. (1993). A new set of consumer demand estimates for Ireland. Economic and Social Review, 24(2), 101–123.Google Scholar
Mehrara, M., and Ahmadi, S. (2011). The estimation of the automotive fuel demand in Iran: Almost ideal demand system approach. Australian Journal of Business and Management Research, 1(77), 72–77.Google Scholar
Nelson, J.P. (2013). Robust demand elasticities for wine and distilled spirits: Meta-analysis with correction for outliers and publication bias. Journal of Wine Economics, 8(3), 294–317.Google Scholar
Neves, P. (1994). A class of differential demand systems. Economics Letters, 44(1–2), 83–86.Google Scholar
Oaklander, M. (2015). Should I drink red wine? Time, March 12, http://time.com/3734538/red-wine-health/.Google Scholar
SAS Institute. (2013). Estimating an almost ideal demand system model. SAS Knowledge Base. Accessed September 14, 2016, at https://support.sas.com/rnd/app/ets/examples/aids/index.htm.Google Scholar
Seale, J. Jr., Regmi, A., and Bernstein, J. (2003). International Evidence on Food Consumption Patterns. Washington, DC: U.S. Department of Agriculture, Economic Research Service, Technical Bulletin No. 1904.Google Scholar
Wade, N. (2006). Yes, red wine holds answer. Check dosage. New York Times, November 2, http://www.nytimes.com/2006/11/02/science/02drug.html?_r=0.Google Scholar
Yglesias, M. (2013). The stunning collapse of beer in America. Slate, August 1, http://www.slate.com/blogs/moneybox/2013/08/01/alcoholic_beverage_preference_the_end_of_beer.html.Google Scholar