Drivers of food-away-from-home consumption propensity and expenditures in Ethiopia: a double-hurdle approach
DOI:
https://doi.org/10.51359/2526-7884.2025.267670Keywords:
Food-away-from-home, Consumption, Expenditure, Double-Hurdle, EthiopiaAbstract
Food-away-from-home consumption is fast becoming a trend in developing economies and thus has implications for the agricultural sector and agribusiness. This study uses a double-hurdle model using data from the ‘Ethiopia Socioeconomic Survey (ESS)’ database for 6770 households to determine the socio-economic factors that influence participation and expenditure on FAFH consumption. The results show that participation in FAFH consumption increases with being a male-headed household, labour market participation as measured by hours of work, and rural location. Participation in FAFH consumption, however, decreases with household size and being married. On the level of expenditure on FAFH consumption, age of household head, household size, and household income per adult equivalent play a significant positive role. On the contrary, being married and having a rural location significantly lowers expenditure on FAFH. We propose that suppliers of FAFH should be guided by the findings of the study in their marketing strategies, especially market segmentation strategies. The increasing consumption of FAFH has implications for the agricultural sector and agribusiness. As FAFH consumption continues to rise, there is a need to refocus agricultural and agribusiness policies to meet the demand for food in these establishments. This shift in consumption patterns may require changes in production practices, supply chains, and market strategies to ensure the availability of ingredients and products for FAFH.
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