Size and Growth of the Nutritionally Improved Foods Market

Abstract

Sales of "nutritionally improved" food items grew at a faster pace than sales of "regular versions" in U.S. supermarkets between 1989 and 1993 even though nutritionally improved foods generally cost more. This study covered 37 food categories (such as cookies, hot dogs, and ice cream) and divided each category into two groups: "nutritionally improved versions" and "regular versions." The study used supermarket scanner data for the period. Volume share of nutritionally improved versions of the foods expanded from 36 percent in 1989 to 39 percent in 1993, and the dollar share of the nutritionally improved versions increased from 26 percent in 1989 to 30 percent in 1993. Volume sales for the 37 food categories increased a total of 10.9 billion units from 1989 to 1993, with nutritionally improved versions accounting for 78 percent of that increase. Dollar sales for the 37 food groups overall increased $11.3 billion in the same time period, with nutritionally improved versions accounting for 55 percent of that increase

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