At the beginning of this current year it seemed that the low-carb diet was the answer to American’s problem of obesity. Food advertisements everywhere were promoting this new wave dieting technique. Companies that didn’t jump on the low-carb band wagon were left behind by advocates of this low-carb craze. Like any other diet, the craze didn’t last long. The low-carb advertisements that used to be so prevalent are now a thing of the past. Occasionally, we still see companies hanging on to the concept of low-carbs for the die hard dieters out there, but it appears that the Atkins diet trend is beginning to slowly fade.
Recently a study done by the NPD Group, a research firm, stated that, “the percentage of Americans following diets like Atkins and South Beach dropped to 4.6 percent in September from 9 percent in January.” What would be the cause of this drastic downturn in demand? According to ACNielsen LabelTrends, “dollar sales of such foods rose 6.1 percent during the 13 weeks ended Sept. 25, down from double and triple-digit gains in the previous six periods.” Could the increased price for low-carb products be the cause of this decline in demand or was the low-carb diet just a fad that was destined never to succeed?
3 comments:
No matter the diet of choice, I think that Americans are becoming more and more health conscious over time. I notice it in restaurants and grocery stores. People are ordering and buying more nutritionally beneficial items.
Have you noticed the abundance of supplement pills that have been brought out on the market for all of those people on the low carb craze. I wonder if the low carb isn't more hazardous that healthy.
This is a pretty good example of monopolistic competition in action. Firms saw an opportunity to price low-carb stuff above marginal cost, and they did. The high prices signal other firms to enter the industry, driving profits towards zero.
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