Income growth, employment structure transition and the rise of modern markets: The impact of urbanization on residents’ consumption of dairy products in China

In modern society, dairy products have become increasingly important in our diet because of changes in consumption patterns due to urbanization. However, Chinese residents’ dairy consumption remains at a relatively low level, with great potential for growth. Exploring the main determinants of dairy consumption and their effect mechanisms not only helps to improve the health status of residents, but also has important policy implications for the development of China’s dairy industry. Based on the data of China Health and Nutrition Survey (CHNS) from 1989 to 2011, this study empirically analyzes the impact of urbanization on residents’ dairy consumption. The results indicate that urbanization could significantly promote residents’ consumption of dairy products and the effect is higher in areas with low urbanization levels and in midwestern regions than in areas with high urbanization levels and in midwestern regions. From the perspective of effect mechanism, income growth, employment structure transition and the rise of modern markets are three important mediating paths. Additionally, the results imply that in areas with low urbanization levels, income growth and the rise of modern markets are the main significant mediators; while in areas with high urbanization levels, employment structure transition is a significant mediator. Moreover, in midwestern regions, income growth is a significant mediator, and employment structure transition is a significant mediator in all regions. These findings have practical implications for understanding the relationship between urbanization and residents’ food consumption and for further promoting residents’ dairy consumption and the development of China’s dairy industry.