How Consumer Demand for Orange Juice Changed: Price Elasticities by Process Type, 2022/23–2023/24
Sungeun Yoon, Marisa Zansler, and Lisa House
This study analyzes consumer responses to price changes in 100% orange juice during the 2022/23–2023/24 seasons. Using Nielsen sales data and a demand model, we estimate price elasticities for Not from Concentrate (NFC) and Reconstituted (Recon) juices. Both types showed elastic demand, with Recon being more price-sensitive. Cross-price elasticity estimates indicate that NFC and Recon are substitutes, but with asymmetric substitution: consumers are more likely to switch to Recon when NFC prices rise than vice versa. As the price gap between the two narrowed, consumers increasingly favored NFC over Recon. These findings highlight the importance of pricing in shaping demand and substitution behavior.