The U.S. import demand for spices and herbs by differentiated sources

Publication date: Available online 18 January 2019Source: Journal of Applied Research on Medicinal and Aromatic PlantsAuthor(s): Ly Nguyen, Lam T. Duong, Rao S. MentreddyAbstractThis research applies the Rotterdam model to estimate U.S. import demand for source-differentiated spices and herbs and medicinal plants. The price structure indicates that U.S. import demand for both, spices and herbs are inelastic, with demand responding the most to import prices of herbs from North America and the least to import prices of herbs from Asia and Africa. Asian herbs and medicinal plants are dominant and can substitute for the other sources in the U.S. market, whereas, North America is the largest provider of spices and significantly substitutes for spices from other regions. Expenditure elasticities reveal that herbs and medicinal plants from Asia and spices from South America have the most to gain from an expansion in the U.S. herbs and spices market. The U.S. preference trend for both, spices and herbs as well as medicinal plants from Asia is decreasing, whereas, it is increasing from all other regions.
Source: Journal of Applied Research on Medicinal and Aromatic Plants - Category: Complementary Medicine Source Type: research