This paper reviews the recent literature an food demand and welfare analysis in transition economies. Understanding the evolution of demand and obtaining estimates of food demand elasticities and of the effects on welfare of price and income changes are vital for policy makers. The purpose of the paper is to consider issues and methods available for the analysis of food consumption patterns in transition economies. A review of a number of studies reveals that economic analysis using conventional analytical methods produces meaningful results which conform with a priori expectations. However, more work is needed on data availability and reliability, mostly through the carrying out of household surveys, and on the method used for empirical analysis.