Analysis of Household Determinants of Demand for Food Away-from-Home (FAFH) in the Urban Sector of Sri Lanka
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Date
2021
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Uva Wellassa University of Sri Lanka
Abstract
Food consumption in Asia has undergone significant changes over the past two decades. This
change in consumption patterns can be attributed to the rapid economic and income growth,
urbanization, modernization of marketing infrastructures, the emergence of processed food
companies, the spreading of multinational fast food service providers, increased female labour force
participation. One of the biggest changes in food consumption patterns in Sri Lanka is the increased
consumption of food away from home (FAFH). Nutritionists, economists, public health officials,
and policymakers are concerned that consumption of more FAFH, relative to food at home (FAH)
likely to contribute to food-related chronic diseases in humans. This study aims to investigate the
demand characteristics of FAFH consumption in Sri Lanka with special reference to the urban
sector. Data were collected from the Household Income and Expenditure Survey (HIES) 2016,
conducted by the Department of Census and Statistics (DCS) in Sri Lanka. The theoretical model of
this study is derived from Becker‟s Household Production Theory. Factors influencing households‟
decisions to consume food away from home and how much to spend on these food items were
analyzed using Cragg's double hurdle model. According to the results, income, household size, all
adult members engaging in a job, being single have positive and significant effects on the
household‟s expenditure on FAFH. However, household head‟s age, and education level have
significant negative effects on away from home food consumption expenditure. Further, estimations
of the first hurdle model reveal that the household head‟s age, family size, and household head‟s
education level negatively and significantly affect the FAFH consumption decisions. Accordingly,
younger households, less educated households, and all working households have a greater
preference for convenience than other households as illustrated in their expenditure patterns on food
away from home. Getting richer will also lead to a higher level of FAFH expenditure. Educating
consumers about healthful FAFH choices could have a significant payoff, especially if self-control
is impaired when eating away from home.
Keywords: Urbanization; Income growth; Health; Consumption; Food away from home; Double
Hurdle Model
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Keywords
Business Management, Marketing, Entrepreneurship, Food Science