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Research Outline

Prepared for Farhad A. | Delivered November 13, 2020

Pecan Oil Market In The U.S.

Goals

To get a high-level understanding of the pecan oil market in the United States. More specifically, to provide the market size for pecan oil in the U.S., what is the average cost of pecan oil, its health benefits compared to other types of oils, and where pecans are distributed from.

Early Findings

  • Sales of pecans total $9 billion in the U.S. More and more U.S. consumers are buying foods to improve their physical and mental well-being. They are also buying more specialty gourmet foods, particularly coffee, chocolate, specialty oils, cheese, and soft drinks. Sales of gluten-free products have also seen a significant increase. These trends provide an opportunity to position pecan oil and flour in new, growing markets.
  • While the market size of pecan oil has not been tracked, researchers from the New Mexico State University conducted trade interviews with specialty product food wholesalers. According to the findings, the combined sales of pecan oil in the U.S. did not exceed $2 million in 2018. This market size is in line with the sales of vegetable oils in North America reported by Fortune Business Insights which were $22.89 million in 2018.
  • Pecan oil is not widely available in big retail food stores. Most of the sales is through the Internet and small retail stores located in pecan-growing regions. The U.S. is the world’s largest pecan producer, responsible for 80% of the world’s pecans. Texas, New Mexico, and Georgia harvest most of the pecans in the U.S., with Georgia to be the largest pecan producing state.
  • This type of oil contains only 9.5% saturated fat, which is less than in olive oil (13.5%), peanut oil (16.90%), or corn oil (12.70%).
  • The price of pecan oil is considered high when compared to other types of oil. While every producer and retailer has a different price, most of the products cost more than 60$ per liter. An example can be found here. It is a pecan oil produced by the Art of Pecan.
  • In 2018 the pecan industry launched its first national campaign to proudly boost its claim as a highly nutritious, versatile, and local nut. American Pecans, The Original Supernut™ is a brand positioning for pecans and a consumer education initiative to get consumers in the U.S. to consider pecans in their diet.