Changing Consumer Buying Habits in Developing Countries: A Disaggregate Demand Analysis for Fruits and Vegetables in Vietnam

Food systems in developing countries are currently undergoing a rapid transformation, with important implications for local farmers, wholesalers, and retailers. While supply side aspects of this transformation have been analyzed previously, issues of consumer demand have received much less attention. This paper analyzes changing consumption habits for fresh fruits and vegetables in Vietnam, using household survey data and a demand systems approach. Demand for products from modern supply chains particularly modern retailers and non-traditional imports is highly income elastic. Also, supermarket expansion impacts on consumer demand. This implies a continued restructuring of the food sector in the further process of economic development.