Some economic, social and technical influences

Food expenditures are dependent on 3 factors: the level and growth of income; the proportion of uncommitted expenditure; and movement in relative prices. Socio-demographic elements (e.g. decrease in population growth, change in age distribution, and decline of average household size) also determine consumer needs and patterns of purchase. These social changes influence the development of technology in the food industry; recent efforts are directed toward reducing energy costs. Consumer inspired legislation, such as that which requires ingredient lists on packages or replacement of food additives, is costly because technology must be developed solely to meet its requirements. Government regulations inhibit innovation and waste resources. (rkm)