Olive Growing in Australia - Market Research Report (2014-2029)

Bitter taste: Volatile growing conditions have withered industry demand and revenue

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

The Olive Growing industry has displayed significant volatility over the past five years. Weather conditions directly affect industry output as olives are water-intensive. As a result, annual rainfall and water availability influence production. As rainfall and water extraction levels are typically volatile, industry revenue often fluctuates from year to year. Olive growing often runs on fluctuating cycles, with a year of high production typically followed by a year of lower production volumes. This is also partially attributable to the biennial nature of olive tree fruiting. Olive production has been volatile over the past five years, but has declined overall. Agricultural conditions are the main determinant of industry performance as the industry exhibits low international trade. Additionally, due to the bitter taste of olives, products generally need to go through some level of processing before consumption. Increasing health consciousness has contributed to rising demand for olive oil, subsequently increasing demand for industry products. Industry revenue is expected to decrease at an annualised 6.8% over the five years through 2021-22, to total $97.6 million. This figure includes a decrease of 15.6% in the current year.

Industry firms primarily grow olives, which are further processed into table olives or olive oil.