Functional foods as differentiated products: The Italian yogurt market

Alessandro Bonanno

Research output: Contribution to journalReview articlepeer-review

32 Scopus citations


In spite of the growing consumers' interest for functional foods, the knowledge regarding the demand for these products and their profitability is limited. Adapting the LA/AIDS (Linear Approximated-Almost Ideal Demand System) model by means of Pinkse, Slade and Brett's distance metric method (2002), this article studies demand, substitution pattern, and profitability of conventional and functional alternatives inside the yogurt category in Italy. Results indicate that, in the yogurt market, functional alternatives' demand is often less elastic than that of their conventional counterparts, that brand loyalty plays a key role, and that the profitability of the functional alternatives is, on average, larger than that of conventional ones.

Original languageEnglish (US)
Pages (from-to)45-71
Number of pages27
JournalEuropean Review of Agricultural Economics
Issue number1
StatePublished - Feb 2013

All Science Journal Classification (ASJC) codes

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics


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