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SNACK PEANUTS CONSUMPTION TYPE PREFERENCE AND CONSUMPTION MANNERS

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									      SNACK PEANUTS CONSUMPTION: TYPE PREFERENCE AND CONSUMPTION
                              MANNERS

                                   Senhui He and Stanley Fletcher
                             National Center for Peanut Competitiveness
                                       University of Georgia

Situation: Snack peanuts have been quite popular in the United States for a long time. However, the
market share of snack peanuts in the US domestic snack food market has declined in recent years. The
decrease in domestic demand for snack peanuts has caused growing concerns that it may result in a
shrinkage of the peanut industry. To cope with the problem, efforts ought to be made to explore factors
influencing consumption of snack peanuts.

Many types of snack peanuts have been developed over the years to meet consumer demand for variety.
 Examination of consumer preference for specific types of snack peanuts may provide useful
information to better understand and hence more thoroughly exploit the market for snack peanuts.

Response: Research has been conducted to analyze consumer preference for various types of snack
peanuts, using data from a nationwide survey of snack peanuts consumption. Econometric models were
estimated to explore factors affecting consumer type preference.

Results: A multinomial logit model was estimated to explore factors affecting consumer preference for
specific types of snack peanuts. The dependent variable reflects which of the fourteen types of snack
peanuts considered in the study a respondent consumed most frequently. More than 82% of the
respondents consumed either dry roasted peanuts, salted cocktail peanuts, honey roasted peanuts,
peanuts in a cocktail nut mix, or peanuts in a trail mix most frequently and for most of the other types of
snack peanuts listed in the survey, very few respondents consumed them most frequently. Therefore, we
grouped all the other types into one alternative as “others”.

The econometric results show that age is adversely related to the probability that a respondent would
consume salted cocktail peanuts most frequently. The relationship is also found to true between age and
honey roasted peanuts, and between age and peanuts in trail mix. On the other hand, older consumers
tend to prefer peanuts in cocktail nut mix.

Education and ethnic status are also found to be important determinants of type preference. College
educated individuals tend to prefer honey roasted peanuts and peanuts in trail mix. White people tend to
consume peanuts in cocktail nut mix more frequently than other types of snack peanuts. The race effect
may be due to difference in food consumption tradition between white people and people of other races.

Income plays an important role in determinating type preference. Compared with those whose annual
household income is between $35000 and $75000, low income (less than $35000) individuals are less
likely to consume salted cocktail peanuts most frequently while high income (more than $75000)
individuals are less likely to prefer peanuts in cocktail nut mix over other alternatives, and so are they
with peanuts in trail mix.

Acknowledgment: We wish to gratefully acknowledge the Georgia Peanut Commission for partial
funding of the research effort.


                                    Georgia Peanut Commission Research Report Summaries on 2004 Projects

								
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