Consumption, country of origin effect and age: An economic analysis of food consumption in Greece during 1963-2005

Author: Ioannis Sotiropoulos ¹, Ioannis-Dionysios Salavrakos ² and Efthymios Mygdakos ^3*

Received 11 January 2009, accepted 3 April 2009.

Abstract

The aim was to demonstrate the changes which occurred in food consumption in Greece during 1963-2005, based on the country of origin effect, as well as population age. We provide a theoretical discussion on consumption and the relevant consumption of agricultural products. The theory related to country of origin effect is the most critical. Consumer population was differentiated according to age groups (≤24, 25-34, 35-44, 45-54, 55-64, 65-74 and >75 years) and data from Official Government Statistics (ESYE) for various years (1963/1964, 1974, 1981/1982, 1988/1989, 1993/1994, 1998/1999, 2004/2005) was used. Patterns of food consumption in modern Greece have changed immensely after World War II. They are not Mediterranean any more, but they can be characterized as international similar to those of the industrialized countries of the West. This is certainly an important “signal” and demonstrates how imported food gradually but steadily dominated the domestic market (i.e. the country of origin effect holds for the above consumer group). The “leaders” of this transformation are the young groups. This is associated with broader changes on tastes and demonstrates the ability of imported food manufacturers to follow a focus strategy (i.e. specific consumer group). The elderly consumers are more traditional. However, if they adopt some new consumer traits they do not abolish them easily. Thus the country of origin effect in this specific consumer group is also considerable over the years. Food expenditure is reduced across ages during 1963-2005. This is associated with broader changes in life style. The reduced expenditure has a faster rate in young consumers as opposed to the elderly consumers. The last element also affects domestically produced as well as imported food, however, we cannot be certain as to what is the extent of the above parameters.

Key words: Food consumption, population age, multinationals, country of origin effect.