Despite new markets, imports will place pressure on prices and hurt industry revenue.
New York, NY (PRWEB) January 15, 2014
While the Beekeeping industry accounts for less than 1.0% of revenue for the animal farming sector, its trends do not stray far from the sector's overall performance. Domestic and global weather conditions, import competition and the incidence of disease have defined revenue and production volumes during the five years to 2013.
According to IBISWorld Industry Analyst Antal Neville, “Total honey production volumes have declined during the past five years because of colony collapse disorder (CCD), a disease that has led a huge number of US honeybee hives to die off unexplainably in the past decade.” In 2008, CCD reached Canada, wiping out much of the country's honey capacity. Consequently, domestic prices of honey soared, rising from $1.42 in 2008 to $1.95 in 2012 (latest data available). Therefore, despite the drop in production, these higher prices caused industry revenue to grow. IBISWorld estimates that revenue has grown an annualized 4.0% to $297.9 million in the past five years, including a 2.1% bump in 2013.
Meanwhile, reduced domestic production left the remaining demand to be filled by imported honey. The value of imports grew at an average annual rate of 15.0% over the five years to 2013 to total $496.9 million, replacing domestic product with lower-priced foreign honey; imports currently satisfy an estimated 63.9% of domestic demand. Still, aside from bees' use in honey production, they also serve another market, pollination for agricultural crops. Reduced bee colony numbers have led the prices paid by farmers for pollination to skyrocket. As a result, a number of players have entered the industry to cash in on this growing market; enterprises have grown an annualized 3.3% to 5,001 in the five years to 2013.
Over the five years to 2018, more affordable imports will continue to replace domestic products; as a result, imports are expected to grow. However, US beekeepers will likely market their products for new activities in the near future. “Honey and bees are already used in medicine developments and for pollination services to crop farmers,” says Neville. These markets are expected to expand over the next five years, keeping the US Beekeeping industry afloat.
For more information, visit IBISWorld’s Beekeeping in the US industry report page.
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IBISWorld industry Report Key Topics
The Beekeeping industry comprises establishments that are primarily raise bees. These establishments may collect and gather honey, sell bees, royal jelly, bees' wax, propolis, pollen, venom and other bee products.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.