Background and Purpose
○ Korea’s meat consumption has continuously increased with population growth and income improvement. However, there have been changes in meat consumption structures and behaviors due to demographic changes, including shrinking birth rates, aging, and increases in one-person or two-person families without children.

○ The emergence of meat substitutes made from plants or based on cultivation technologies, the increasing share of meat purchases through online markets, changes in the meat grading system, and life pattern changes from the 52-hour workweek system are likely to impact meat consumption behaviors.

○ This research first explores changes in consumption conditions and meat consumption structures, influencing meat consumption behaviors. Based on the inspection, it analyzes consumer spendings based on households’ socio-economic characteristics and meat’s substitute relationships by country of origin and grading of meat. It also carries out an analysis of consumers’ consumption state and looks into scientific, technological, and regulatory impacts on meat consumption. Based on the findings from these activities, this research intends to identify responsive tasks.

Research Methodology
○ We used the raw data of the Household Income and Expenditure Survey produced by Statistics Korea to understand households’ meat consumption amount by socio-economic characteristic. We also used KANTAR’s consumer panel data and the time- series data of the Korea Institute for Animal Products Quality Evaluation to analyze meat’s substitute relationships. A linear approximated almost ideal demand system (LA/ AIDS), estimated in first differences, was applied for the analysis, too.

○ Concerning the analysis of meat consumers’ behavior changes, we used KREI’s Statistical Report on Food Consumption Behaviors (2013-2018). For the detailed analysis of meat consumption, we used Embrain’s consumer panels. Also, we used Big Kinds to analyze big data to understand changes in meat consumption trends for the past two decades.

○ To inspect the effects of regulatory changes, including the 52-hour workweek system and the meat grading system, we applied the meat consumption data and beef grading data to the ordered logit model and the DID (difference in differences) model. Lastly, we carried out focus group interviews targeting meat wholesalers and retailers and came up with responsive tasks based on the review of overall simulation results.

(For more information, please refer to the report.)