Olive Oil Production in the US Industry Market Research Report Now Available from IBISWorld

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Despite a small decline during the recession, increasing consumer demand for olive oil has kept production growing over the past five years. In the coming years, rising health consciousness will continue driving consumer demand for the industry's products, keeping revenue on the rise. As a result, more operators will become USDA-certified to gain a competitive advantage as the number of firms rises. For these reasons, industry research firm IBISWorld has added a report on the Olive Oil Production industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Consumer demand for olive oil is set to strengthen, boosting industry revenue and profit

The Olive Oil Production industry has fared well over the five years to 2012 due to higher disposable income, greater demand from grocery wholesalers and olive oil's marketable health benefits. The industry has grown at an estimated annualized rate of 2.6% over the past five years, including a 4.3% increase in 2012, to reach $1.2 billion. Olive oil has received significant media attention for its health benefits, including its antioxidant, anti-inflammatory and anticlotting properties. Olive oil boasts these benefits due to the product's high phenolic compound content. According to IBISWorld industry analyst Lauren Setar, a growing number of health-conscious consumers is supporting industry demand. Additionally, the industry has faced increased demand for organic and certified extra-virgin olive oil, helping boost industry revenue and profit. Industry profit is estimated to rise as well.
Since olive oil is destined for consumption, the industry must adhere to significant regulation. Most recently, according to 2010 US Department of Agriculture (USDA) standards, olive oil producers can choose to have their oil tested for classification by the USDA. This process helps enhance a producer's reputation and differentiate the firm from its competitors. Although beneficial, testing can prove costly. As a result, regulation has curbed industry growth, says Setar. The industry experienced a decline in 2009, as it could not overcome globally depressed economic conditions. Due to decreased disposable income, many consumers switched to lower-priced cooking oils. With declining disposable income and lessened demand from grocery wholesalers, the industry's revenue fell 1.2% in 2009. The Olive Oil Production industry has low market share concentration, with no producer holding over 5.0% market share. Most industry operators are small, and the number of new entrants is increasing. For example, small farms, mills and wineries are adding olive plantings and processing facilities. Over the five years to 2012, industry firms have grown at an estimated average annual rate of 1.3% to 452 firms. Enterprises are set to continue increasing during the next five years, growing at an annualized rate of 0.8%.
Industry demand and revenue will strengthen over the five years to 2017. Consumers will remain conscious about their health and demand more olive oil for its health benefits. Revenue is expected to grow over the five years to 2017. During this time, a larger number of companies in the industry are likely to adopt the regulations necessary to become USDA-certified. This will enhance a company's reputation and provide it with a competitive advantage, which will be significant as the number of industry firms increases. Over the five years to 2017, the number of companies is expected to grow as more small producers enter the industry. For more information, visit IBISWorld’s Olive Oil Production in the US industry report page.

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IBISWorld industry Report Key Topics

This industry makes edible oil out of olives, including different grades like refined olive oil, virgin olive oil and extra-virgin olive oil. Generally, olive oil producers retail products to wholesalers, supermarkets and online retailers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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