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Impact of Increased Grocery Prices on Households: Studying Sweden 2022/2023
KTH, School of Industrial Engineering and Management (ITM).
KTH, School of Industrial Engineering and Management (ITM).
2023 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesisAlternative title
Effekten av ökade livsmedelpriser på hushåll : Sverige 2022/2023 (Swedish)
Abstract [en]

In 2022, food prices increased rapidly, prompting this investigation into how the price shock has impacted consumer behavior. Previous studies have found that price shocks affect low- income households with children the most. A switch to more calorie-dense food and a decreased consumption of snacks. This study aims to estimate the price elasticity of various food products and to identify how the elasticities differ among various types of households. The elasticities are calculated using OLS regression on receipt data from Coop.

Results show that household variables, including income level, presence of children, shopping location, and organic product preferences, significantly impact the price elasticity of food products. Low-income households without children, living outside major cities and their suburbs, have a higher price elasticity, meaning these shoppers are more sensitive to price changes. The same tendencies were observed for all products even though the exact parameters could only be proven for a third of the products. The findings have important implications for understanding how price changes affect consumer behavior and can inform food policy decisions.

Abstract [sv]

Under 2022 ökade livsmedelspriserna kraftigt, vilket inspirerade denna undersökning av hur prischocken har påverkat konsumenternas beteende. Tidigare studier visar att prischocker har störst påverkan på låginkomsthushåll med barn. Även en övergång till mer kaloririk mat och en minskad konsumption av snacks har observerats. Syftet med denna studie är att uppskatta priselasticiteten för olika livsmedel och identifiera hur elasticiteten skiljer sig åt mellan olika typer av hushåll. Elasticiteterna beräknas med hjälp av en OLS-regression på kvittodata från Coop.

Resultaten visar att hushållsvariabler, inklusive inkomstnivå, barn i hushållet, varans inköpsplats och val av ekologiska produkter, påverkar priselasticiteten för livsmedel markant. Hushåll med låg inkomst utan barn, som bor utanför större städer och deras förorter, har en högre priselasticitet, vilket innebär att dessa kunder är mer priskänsliga. Samma tendenser observerades för alla produkter även om de exakta parametrarna endast kunde bevisas för en tredjedel av produkterna. Resultaten har viktiga implikationer för förståelsen av hur prisförändringar påverkar konsumentbeteenden och kan även informera livsmedelspolitiska beslut.

Place, publisher, year, edition, pages
2023. , p. 65
Series
TRITA-ITM-EX ; 2023:372
Keywords [en]
Price Elasticity, Price Shock, OLS Regression, Price Increases, Food Consumption, Household Demand, Grocery Prices, Income Effects, Organic Produce
Keywords [sv]
Priselasticitet, Prischock, OLS-regression, Prisökningar, Livsmedelskonsumtion, Hushållsefterfrågan, Livsmedelspriser, Inkomsteffekter, Ekologiska Livsmedel
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:kth:diva-329744OAI: oai:DiVA.org:kth-329744DiVA, id: diva2:1773264
External cooperation
Coop
Educational program
Master of Science in Engineering - Industrial Engineering and Management
Supervisors
Examiners
Available from: 2023-06-22 Created: 2023-06-22 Last updated: 2023-06-22Bibliographically approved

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