Income effect on consumption of sugar in Brazilian families

Abstract The objective of this paper was to analyze how the consumption of sugar changes as income rises in Brazilian families. We examined the patterns of consumption of sugars in general, crystal sugar, refined sugar, organic sugar and demerara sugar, and how these patterns may shift as households move up the income ladder. The purpose of this study was exploratory, using documentary research as a methodological approach. The database from the Pesquisa de Orçamento Familiar (POF), conducted in the biennium 2017-2018, was used. To estimate the direction and magnitude of the income elasticity of these different products, an econometric model was used. Sugars in general, crystal sugar and refined sugar have a negative estimate for the angular coefficient and, therefore, are considered inferior goods. In the opposite direction, the demerara sugar and organic sugar exhibit positive income elasticities, being considered normal and superior goods, since the respective average expenses increase as we witness a growth of per capita family income.