Hostname: page-component-586b7cd67f-gb8f7 Total loading time: 0 Render date: 2024-11-24T20:37:10.119Z Has data issue: false hasContentIssue false

Wine Consumption in Norway: An Age-Period-Cohort Analysis

Published online by Cambridge University Press:  16 March 2018

Geir Wæhler Gustavsen
Affiliation:
Norwegian Institute of Bioeconomy Research (NIBIO), P.O. Box 115, NO – 1431 Ås, Norway; e-mail: geir.gustavsen@nibio.no.
Kyrre Rickertsen
Affiliation:
School of Economics and Business, Norwegian University of Life Sciences, P.O. Box 5003, NO – 1432 Ås, Norway; e-mail: kyrre.rickertsen@nmbu.no.

Abstract

The Norwegian per capita sales of wine have more than doubled over the past 20 years, while the sales of sprits and beer have declined. These changes are likely to be the effect of changes in economic, demographic, and attitudinal factors as well as the availability of wine. We estimated age-period-cohort (APC) logit models using data from a large repeated cross-sectional survey over the period 1991–2015. The estimation results indicate substantial effects of the APC variables as well as income, availability, and attitudes. The model was used to simulate wine consumption over the life cycle in different birth cohorts. The simulation results indicate that wine consumption frequency increases by age, and younger cohorts are expected to increase their consumption frequencies more than older cohorts, which suggests an increased wine consumption over time. (JEL Classifications: D12, J10, Q13)

Type
Articles
Copyright
Copyright © American Association of Wine Economists 2018 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

We thank the Research Council of Norway (BIONÆR), grant 233800/E50 for financial support. We also thank an anonymous referee and participants at the 10th annual conference of the American Association of Wine Economists in Bordeaux for useful comments to previous versions of this article.

References

Aristei, D., Perali, F., and Pieroni, L. (2008). Cohort, age and time effects in alcohol consumption by Italian households: A double hurdle approach. Empirical Economics, 35(1), 2961.CrossRefGoogle Scholar
Babor, T. F., Caetano, R., Casswell, S., Edwards, G., Giesbrecht, N., Graham, K., Grube, J., Gruenewald, P., Hill, L., Holder, H., Homel, R., Osterberg, E., Rehm, J., Room, R., and Rossow, I. (2003). Alcohol: No Ordinary Commodity. Oxford: Oxford University Press.Google Scholar
Bruwer, J., Lesschaeve, I., and Campbell, B. L. (2012). Consumption dynamics and demographics of Canadian wine consumers: Retailing insights from the tasting room channel. Journal of Retailing and Consumer Services, 19(1), 4558.CrossRefGoogle Scholar
Cameron, A. C., and Trivedi, P. K. (2005). Microeconometrics: Methods and Applications. New York: Cambridge University Press.Google Scholar
Clements, K. W., and Johnson, L. W. (1983). The demand for beer, wine, and spirits: A systemwide analysis. Journal of Business, 56(3), 273304.Google Scholar
Fogarty, J. (2010). The demand for beer, wine and spirits: A survey of the literature. Journal of Economic Surveys, 24(3), 428478.Google Scholar
Fountain, J., and Lamb, C. (2011). Generation Y as young wine consumers in New Zealand: How do they differ from Generation X? International Journal of Wine Business Research, 23(2), 107124.Google Scholar
Gallet, C. A. (2007). The demand for alcohol: A meta-analysis of elasticities. Australian Journal of Agricultural and Resource Economics, 51(2), 121135.Google Scholar
Greenfield, T. K., Midanik, L. T., and Rogers, J. D. (2000). A 10-year national trend study of alcohol consumption, 1984–1995: Is the period of declining drinking over? American Journal of Public Health, 90(1), 4752.Google Scholar
Heien, D., and Pompelli, G. (1989). The demand for alcoholic beverages: Economic and demographic effects. Southern Economic Journal, 55(3), 759770.Google Scholar
Ipsos-MMI. (2016). Norsk Monitor. Available at http://www.ipsos-mmi.no/Norsk-Monitor (accessed 17 June 2016).Google Scholar
Kerr, W. C., Greenfield, T. K., Bond, J., Ye, Y., and Rehm, J. (2004). Age, period and cohort influences on beer, wine and spirits consumption trends in the US National Alcohol Surveys. Addiction, 99(9), 11111120.Google Scholar
Kerr, W. C., Greenfield, T. K., Ye, Y., Bond, J., and Rehm, J. (2013). Are the 1976–1985 birth cohorts heavier drinkers? Age-period-cohort analyses of the National Alcohol Surveys 1979–2010. Addiction, 108(6), 10381048.Google Scholar
Lai, M. B., Cavicchi, A., Rickertsen, K., Corsi, A. M., and Casini, L. (2013). Monopoly and wine: The Norwegian case. British Food Journal, 115(2/3), 314326.Google Scholar
Milhøj, A. (2010). The market share of wine in Denmark. Journal of Wine Economics, 5(2), 327338.CrossRefGoogle Scholar
Nordlund, S. (2010). Effects of increasing availability of wine and spirits in Norway. Nordic Studies on Alcohol and Drugs, 27(2), 127140.Google Scholar
Organisation for Economic Co-operation and Development (OECD). (2008). Growing Unequal? Income Distribution and Poverty in OECD Countries. Paris: OECD.Google Scholar
R Development Core Team. (2017). R: A Language and Environment for Statistical Computing. Vienna, Austria: R Foundation for Statistical Computing. Available at http://www.R-project.org (accessed 27 July 2017).Google Scholar
Sirus (2018). RusStat. Available at http://russtatistikk.fhi.no/russtat/ (accessed 16 February 2018).Google Scholar
Statistics Norway. (2016). StatBank Norway. Available at https://www.ssb.no/en/statistikkbanken (accessed 10 May 2016).Google Scholar
Vinmonopolet. (2016). Available at http://www.vinmonopolet.no/butikker (accessed 10 May 2016).Google Scholar
Yamada, T., Kendix, M., and Yamada, T. (1996). The impact of alcohol consumption and marijuana use on high school graduation. Health Economics, 5(1), 7792.Google Scholar