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A New Market for an Old Food: The U.S. Demand for Olive Oil

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  • Xiong, Bo

Abstract

While U.S. consumption of olive oil has tripled over the past two decades, nearly all olive oil continues to be imported. Estimation of a demand system using monthly import data reveals that the income elasticity for virgin oils sourced from EU is above one, but demand for nonvirgin oils is income-inelastic. The demand for olive oil as a single product is price-inelastic. Differentiated by product characteristic and origin, olive oils are highly substitutable with each other but not with other vegetable oils. News about the health and culinary benefits of olive oil and the spread of Mediterranean diet contribute significantly to the rising demand.
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  • Xiong, Bo, 2013. "A New Market for an Old Food: The U.S. Demand for Olive Oil," 2013: Employment, Immigration and Trade, December 15-17, 2013, Clearwater Beach, Florida 182498, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iats13:182498
    DOI: 10.22004/ag.econ.182498
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    1. Ballco, Petjon & Gracia, Azucena, 2020. "Do market prices correspond with consumer demands? Combining market valuation and consumer utility for extra virgin olive oil quality attributes in a traditional producing country," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    2. Stavroula Malla & K. K. Klein & Taryn Presseau, 2022. "Has the Demand for Fats and Meats in the United States been Affected by the Health Claim on Risk of Coronary Heart Disease Issued by the Food and Drug Administration?," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 8(2), pages 97-118, April.
    3. Fani Lamprinidou & Anastasios Semos & Efthimia Tsakiridou & Panagiota Sergaki, 2022. "The Influence of an Export Manager on Export Marketing Policies: Evidence from Exporting Olive Oil Companies in Crete," Economies, MDPI, vol. 10(7), pages 1-12, June.
    4. A. Malek Hammami & John C. Beghin, 2021. "The trade and welfare impacts of the U.S. retaliatory tariff on EU olive oil," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 807-818, September.
    5. Luigi Roselli & Domenico Carlucci & Bernardo Corrado Gennaro, 2016. "What Is the Value of Extrinsic Olive Oil Cues in Emerging Markets? Empirical Evidence from the U.S. E‐Commerce Retail Market," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 329-342, July.
    6. Mohamed Akli Achabou & Sihem Dekhili & Mohamed Hamdoun, 2017. "Environmental Upgrading of Developing Country Firms in Global Value Chains," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 224-238, February.
    7. Stavroula Malla & K. K. Klein & Taryn Presseau, 2020. "Have health claims affected demand for fats and meats in Canada?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(3), pages 271-287, September.
    8. Čehić Ana & Canavari Maurizio & Oplanić Milan & Cerjak Marija, 2021. "The Importance of Intrinsic and Extrinsic Local Olive Oil Attributes for Tourists: Evidence from a Mediterranean Destination," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 11(2), pages 280-295, December.
    9. Samir Mili & Maria Bouhaddane, 2021. "Forecasting Global Developments and Challenges in Olive Oil Supply and Demand: A Delphi Survey from Spain," Agriculture, MDPI, vol. 11(3), pages 1-25, February.
    10. L. Brilli & E. Lugato & M. Moriondo & B. Gioli & P. Toscano & A. Zaldei & L. Leolini & C. Cantini & G. Caruso & R. Gucci & P. Merante & C. Dibari & R. Ferrise & M. Bindi & S. Costafreda-Aumedes, 2019. "Carbon sequestration capacity and productivity responses of Mediterranean olive groves under future climates and management options," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 24(3), pages 467-491, March.
    11. Mohammed, Rezgar & Murova, Olga & Chidmi, Benaissa, 2018. "Examining Demand Elasticities for Differentiated Yogurt," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266417, Southern Agricultural Economics Association.
    12. Meerza, Syed Imran Ali & Gustafson, Christopher R., 2018. "Consumer Response to Food Fraud," 2018 Annual Meeting, August 5-7, Washington, D.C. 274044, Agricultural and Applied Economics Association.
    13. Antonio Stasi & Francesco Diotallevi & Andrea Marchini & Gianluca Nardone, 2018. "Italian Extra-Virgin Olive Oil: Impact on Demand on Being Market Leaders, Private Labels or Small Producers," Review of Economics & Finance, Better Advances Press, Canada, vol. 13, pages 39-54, August.

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    Keywords

    Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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