Eco & Green Certification Providers in the US Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) July 16, 2013 -- While product labeling has a long history, the Eco and Green Certification Providers industry is a relative newcomer to the market. Ever since their first introduction during the 1990s, ecolabels have gained wide acceptance across various industries due to rising demand for eco-friendly products, says IBISWorld industry analyst Anna Son. These products are known to have a less adverse impact on the environment in their production, use and disposal. To gain a competitive edge with consumers, many companies are attempting to be the first in their industries to receive green certification.
A growing number of consumers are willing to pay an extra buck for eco-friendly products, resulting in more businesses investing in developing and marketing green products. Although some cash-strapped consumers curtailed their spending on higher-priced green products, businesses continued to invest in sustainable practices thanks to increasing government funding and stringent regulations. During the five years to 2013, IBISWorld estimates that industry revenue will grow at an average annual rate of 5.2% to $395.7 million. In 2013, revenue is expected to jump 7.8% on the back of an improving economy and strong demand.
The industry is heavily reliant on government assistance, with about one-fourth of its revenue coming from various government agencies. For example, a number of industry participants benefited from the 2009 American Recovery and Reinvestment Act (ARRA). Prominent industry operator Energy Star received about $300.0 million from the ARRA to certify appliance as energy efficient. The Eco and Green Certification Providers industry has a low level of market share concentration. The main ecolabelers are government-sponsored agencies that receive government funding, and therefore do not directly generate revenue for the industry, continues Son. Concentration has remained relatively stable over the past five years. Operators left the industry in 2009 and 2010 as demand slowed during the recession. However, the rebounding economy encouraged new players to enter the market since 2011. The number of enterprises is expected to continue rising over the next five years, which will keep industry concentration low.
Over the five years to 2018, the industry will stay green. Corporations will continue implementing sustainable practices, which will underpin demand for ecolabeling as these companies develop new eco-friendly products. As consumers become more environmentally aware, corporations will continue demanding industry services to promote a positive public image. Furthermore, the Obama administration is advocating reducing greenhouse emissions, and companies across all sectors will strive to remain abreast of any regulatory changes. The increased focus on environmental sustainability will underpin industry growth. For more information, visit IBISWorld’s Eco and Green Certification Providers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry certifies products as environmentally sound. Industry operators certify a variety of items, including food, consumer goods and buildings. The industry provides different certifications for these various goods and structures.
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.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, 310-866-5042, [email protected]
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