Economics of Soymilk: Analysis of Consumers, Retailers, and the Competition in Specialty Milk Products

Although milk is rich in nutritional value, the presence of lactose in milk can cause uncomfortable digestive issues in some individuals. Since soymilk is lactose/cholesterol free (CFLF), it is a valuable alternative to those who have these issues. Organic milk is another alternative for health concerned individuals. However, organic milk, soymilk and CFLF milk have significantly higher price premiums than other milk types. The price differentials between organic vs. conventional products and soy derived vs. milk derived dairy products and the interactions between these prices are useful indicators to differentiate the willingness to pay for these products. This book provides critical information on this niche market such as the price premiums for soy products and organic products, differences among these premiums on the basis of demographic and geographic factors. The relationship between the demand for soymilk and other dairy products is also analyzed using hedonic metrics. The findings from these analysis suggest important policy implications for producers and retailers in the dairy market.