Research Reports
An Analysis of Rice Consumption Behavior in Korea
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AuthorLee, Kyeiim
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Publication Date2003.12.01
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Original
An Analysis of Rice Consumption Behavior in Korea
The objective of this study is to identify rice consumption structure and to analyse rice consumption behavior at home and away from home. Policy recommendations and implications of the results of the study are focused on how to differentiate domestic rice policy and promote domestic rice consumption.
Consumption of rice has decreased. Rice consumption at home has dramatically decreased 3.7 percent a year since 1990. In 2001, rice consumption at home accounted for 69 percent of total rice consumption, while the share of consumption away from home was 31 percent.
The estimated results show that the time value of house wife, age of household head, education background and occupation of household head, and income are highly associated with rice consumption and Korean food consumption away from home. The income elasticity for rice expenditure has decreased from 0.24 in 1982 to 0.16 in 2002.
62% of the households living in Seoul purchase rice in a market place and most of them purchased 20kg package (80%) in 1～1.5 month cycle. The average purchasing price ranges from 45 thousand won to 48 thousand won and the price was distinguished by income level. Factors affecting rice purchase are found to be taste(45%), price(27%), and safety(21%) in order. As the household income increases, the choice criteria of rice consumption move from price to taste, and concerns on food safety also increase rapidly. In case where imported rice is available in domestic rice market, 54% of the consumers are willing to buy imported rice and lower income households have higher tendency to do so.
Most of meal service and food away from home businesses purchased 20kg package same as the households and the half of respondents purchased at the price of 42～45 thousand won. Intention of meal service and food away from home business to purchase imported rice was over 60%. If the quality of imported rice is similar to domestic rice and the price of domestic rice is 45 thousand won, the price of willing to pay for imported rice was about 80% level of the domestic rice price.
In order to improve the quality competitiveness of domestic rice, it is necessary to segment the market by income and age group and to promote rice consumption by each market. To increase demand for domestic rice away from home, a certification system needs to be implemented. For instance, meals service providers for school could get a certification when they use domestic rice.
Researchers: Lee Kyei-Im and Kim Min-Jeong
E-mail Address: lkilki@krei.re.kr
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