Effects of Consumer Characteristics on the Intake of Health Functional Foods: Implications for National Health Expenditure Savings

Abstract

This study analyzes the consumer characteristics of health functional food intake by major product, and measures the national health expenditure saved due to the intake. Our survey of 1,210 consumers covers the current state of their health functional food intake and their consequently reduced medical expenses. Using a probit model, this study analyzes the characteristics of the consumers' intake of each of the seven major products: multivitamins, red ginseng, probiotics, lutein, eicosapentaenoic acid/docosahexaenoic acid oils, single vitamins, and propolis. The results show that women have a higher probability of consuming these products than men. However, younger consumers are more likely to take multivitamins and probiotics, while older consumers are more likely to consume lutein, eicosapentaenoic acid/docosahexaenoic acid oils, and propolis products. For most products, a higher income level increases the probability of taking them. On the other hand, the national health expenditure saved due to consumers' intake of health functional foods is estimated to be approximately 8.952 trillion won (about USD 8 billion), which includes about 2.202 trillion won (about USD 1.95 billion) in the private sector and approximately 6.750 trillion won (about USD 5.98 billion) in the public sector.