Food price elasticity estimates in Australia

Fiscal food policies can be used, among others, to minimize the burden of diet-related diseases. To inform the design of such policies in Australia, we used the large grocery-purchasing dataset NielsenIQ Homescan to estimate own-price elasticities and cross-price elasticities for 18 food categories. We found that households were most responsive to changes in price for non-sugar-sweetened beverages and sugar-sweetened beverages: a 10% increase in price was associated with reductions in demand of 15% and 12%, respectively. Additionally, an increase in the price of one category was associated with relatively small changes in the quantity demanded for other categories (that is, 92% of cross-price elasticities had an absolute value <0.2). There were small differences in own-price and cross-price elasticities across socioeconomic quintiles. These price elasticity estimates can be used to model the health and equity impacts of fiscal food policies in Australia.