Olive Oil Market

Olive Oil Market Outlook

The global olive oil market is expected to be valued at USD 13.79 billion in 2023 and reach a valuation of USD 18.35 billion by 2033. The demand for olive oil is estimated to record a steady 2.9% CAGR.

Increasing Nutrient-rich Oil Intake in Diet to Lower the Risk of Health Conditions

The market is expanding primarily due to the trend of maintaining overall health and wellness by switching to healthier oil options. Due to the rise in lifestyle-related illnesses, consumers' propensity to include healthy vegetable oils in their regular diets has increased recently.

Obesity and cardiovascular diseases are now more common due to today's consumers' stressful and sedentary lifestyles. The growing understanding of the strong correlation between dietary fat and oil consumption and hypertension and coronary heart disease primarily drives the demand for nutrient-rich oils.

While buying oil products, consumers pay more attention to the claims made on the label. Vegetable oils with specific health claims, such as high vitamin E, omega-3, and MUFA (monounsaturated fatty acids), are becoming more popular as people become aware of overall health benefits. The product's high MUFA and antioxidant content support the heart's normal operation.

Olive oil is a popular and healthy cooking oil, but its high price is a significant market barrier. Plant-based oils like canola and corn oil have a huge price advantage over olive oil because they are much less expensive. Additionally, many suppliers are vying for market share in the highly competitive global olive oil market. This intense competition further reduces prices and margins.

The Mediterranean Basin is one of the few places where olive oil is primarily produced. This makes the market susceptible to shocks brought on by the weather and other production interruptions. For instance, a protracted drought in Spain, one of the leading producers of olive oil, could increase the cost and cause a shortage of this vital component.

6 Key Factors Sustaining the Steady Growth Stride of the Market

• Sustainability: There is a growing focus on sustainability in the food and beverage industry, and consumers are becoming more concerned about the environmental impact of their food choices. Producers can differentiate themselves by promoting their sustainability practices and certifications.
• Innovation: Producers are investing in research and development to improve the quality and consistency of their products and develop new products and packaging.
• eCommerce: Online sales of food and beverage products are increasing as producers have the opportunity to increase their reach and access new customers through e-commerce platforms.
• Expansion into New Markets: Producers have the opportunity to expand into new markets, including developing countries with growing middle class and increasing demand for olive oil.
• Diversification of Product Offerings: Producers have the opportunity to diversify their product offerings to include different grades and varieties of olive oil, as well as value-added products such as flavored oils.
• Partnership and Collaboration: Producers have the opportunity to establish partnerships and collaborations with companies in other industries, such as the cosmetics industry, to expand the use of olive oil in new product categories.

4 Key Aspects Restraining the Growth of the Market

• Fluctuations in Prices and Supply: Fluctuations in prices and the supply chain can be affected by various factors such as weather conditions, disease outbreaks, and political instability in leading olive oil-producing countries.
• Lack of Standardization: The lack of standardization in the olive oil industry can make it difficult for consumers to determine the quality and authenticity of products, leading to confusion and mistrust.
• Food Safety Concerns: There have been incidents of adulteration and mislabeling of olive oil, which has raised concerns about the safety and quality of the product.
• Slow Adoption of New Technologies: The olive oil industry is characterized by small, traditional producers, and there may be resistance to the adoption of new technologies and production methods.

Attribute	Details
Olive Oil Market CAGR (2023 to 2033)	2.9%
Olive Oil Market Size (2023)	USD 13.79 billion
Olive Oil Market Size (2033)	USD 18.35 billion

How is the Future Outlook for Olive Oil in Comparison to Historical Pattern?

The global consumption of olive oil is anticipated to expand at a CAGR of 2.9% between 2023 and 2033. The growth potential of olive oil market could be looked at from short-term, mid-term, and long-term perspectives.

Outlook	Details
Short-term Outlook (2023 to 2026):	Premiumization in the food and beverage industry. Consumers' willingness to pay more for high-quality products, including olive oil.
Mid-term Outlook (2026 to 2029):	Technological advancements in the production and distribution of olive oil have helped to improve the quality and consistency of the product, making it more appealing to consumers
Long-term Outlook (2029 to 2033):	Consumers are increasingly seeking out natural and organic products, and olive oil is perceived as a healthier and more natural alternative to other oils.

Country-wise Insights

With surging small and medium-sized producers, the global olive oil market is highly competitive and fragmented. The top three producers, Spain, Italy, and Greece, account for around 56% of global production.

The European Union is the world's leading producer and consumer of olive oil, accounting for more than 60% of global output. Spain is the leading producer, accounting for nearly 56% of total output, followed by Italy (17%), Greece (15%), and Portugal (9%).

Tunisia and Morocco are Africa's key producers, accounting for roughly 40% and 35% of total production, respectively.

What are the Factors Contributing to the growth of the Olive Oil Market in the United States?

Growing health consciousness among consumers has led to an increased demand for healthier food products, such as olive oil, which is perceived as a healthier alternative to other oils.

The United States has seen a significant increase in olive oil imports in recent years, which indicates the growing demand for the product in the country. Producers have expanded their product offerings to include different grades and varieties of olive oil, which has increased the availability of the product and made it more accessible to a wider range of consumers. The popularity of Mediterranean cuisine and the use of olive oil in cooking and as a finishing oil has contributed to the growth of the olive oil market in the United States.

Is the United Kingdom expected to Maintain its Dominance in the Olive Oil Market?

Factors affecting market position of key players in the United Kingdom:

• Competition from Other Markets: The olive oil market is highly competitive, and there is increasing competition from other countries, such as Spain, Italy, and Greece, which are key producers of olive oil.
• Changes in Consumer Preferences: Consumer preferences can change rapidly, and shifts in consumer preferences towards alternative oils or away from olive oil could impact the market.
• Economic Conditions: Contracting economic conditions can impact the demand for olive oil, as well as the ability of producers to sell their products.
• Regulatory Environment: Changes in regulations, such as tariffs or trade agreements, could impact the market position in the country.

Despite these uncertainties, the United Kingdom has a well-established reputation for producing high-quality olive oil and has a strong market position. However, producers in the United Kingdom need to remain vigilant and adapt to changes in the market to maintain their dominance in the future.

Why China is Considered an Attractive Olive Oil Market?

The rise of the middle class in China has led to an increase in disposable income, which has led to an increase in the demand for high-quality, premium products such as olive oil.

China has seen a significant increase in olive oil imports in recent years, which indicates the growing demand for olive oil in the country. Many olive oil producers have established strategic partnerships with China-based companies to better reach the China market, which has helped to increase the visibility and availability of olive oil in the country.

Is India Poised to Become a Lucrative Market?

India has the potential to become a lucrative market for olive oil due to several factors, such as a growing middle class, increasing health consciousness among consumers, and the rise of western-style food habits. The demand for olive oil has been growing steadily in India as consumers are becoming more aware of its health benefits and the oil's versatility in cooking. However, the olive oil market in India is still in its nascent stages and faces several challenges, such as limited availability, high costs of olive oil, and lack of awareness about health.

The domestic production of olive oil in India is also limited, where the substantial supply comes from imports. This makes the market heavily dependent on imports, which can impact the price and availability of oil.

Despite these challenges, the potential for growth in the Indian olive oil market is significant, and many companies are looking to tap into this growing market. As the demand for olive oil continues to grow and production increases, India has the potential to become a lucrative market for olive oil producers. However, much is likely to depend on how the market evolves over the coming years.

Category-wise Insights

Virgin Olive Oil Remains the Top Olive Oil Preference among Consumers

The virgin olive oil segment is expected to perform well in terms of sales due to its growing popularity among consumers as a result of increased awareness about its health benefits. Virgin oil contains omega-3 and oleic acid, which help to prevent lifestyle-related disorders such as obesity and cardiovascular disease.

Emerging processing techniques and technological advancements that allow manufacturers to efficiently process virgin oils with the highest nutrient content drive market growth even further.

Due to its increasing use in pharmaceuticals, dietary supplements, and cosmetics, the pure/refined olive oil segment is expected to grow significantly. The growing demand for nutrient-rich animal feed has significantly increased the demand for olive fruit oil in the production of high-value animal feed.

Top Companies in the Olive Oil Market

Colavita: Colavita is a United States-based company that imports and distributes olive oil from Italy. The company was founded in 1979 and has since become a leading producer of olive oil in the United States. Colavita produces not just blended olive oils, but also other oil products such as balsamic vinegar.

Pompeian: Pompeian is one of the significant producers of olive oil in the United States. The company was founded in 1906.

California Olive Ranch: California Olive Ranch is a leading producer of extra-virgin olive oil in the United States. The company was founded in 1998 and is known for its commitment to quality and sustainability. California Olive Ranch produces a range of high-quality extra-virgin olive oils, as well as other oil products such as avocado oil.

Olitalia: Olitalia is an Italian company that produces and exports premium-quality olive oils. The company was founded in 1950 and has since become a leading producer of olive oil in Italy. Olitalia produces a range of high-quality extra-virgin and blended olive oils, as well as other oil products such as truffle oil.

Gaea: Gaea is a Greek company that produces and exports premium quality olive oils. The company was founded in 1994 and is known for its commitment to traditional production methods. Gaea produces blended olive oils, as well as other oil products such as sesame oil.

Key Segments

Type:

• Refined/Pure
• Virgin
• Others

End User:

• Household/Retail
• Foodservice/HoReCa
• Food Manufacturing
• Others

Region:

• North America
• Latin America
• Europe
• Asia Pacific
• The Middle East & Africa

Frequently Asked Questions

What is the Olive Oil Market value in 2023?

The market is valued at USD 13.7 billion in 2023.

What is the CAGR from 2023 to 2033?

The market’s CAGR from 2023 to 2033 will be 2.9%.

Who are the key market players?

Colavita, Pompeian, and California Olive Ranch are key market players.

What opportunities await the market players?

Increasing health consciousness among consumers to boost the market prospects.

Which is the key segment by type?

Virgin segment is likely to remain preferred through 2033.