Olive Oil Market - Forecasts from 2022 to 2027

The Olive Oil Market is expected to grow at a compound annual growth rate of 12.02% over the forecast period to reach a market size of US$15.368 billion in 2027 from US$6.944 billion in 2020.

Olive oils are extracted from the olive fruit and are generally manufactured by physical or mechanical processes using grind, press, centrifuge, filtration, and various others. It can also be prepared chemically by using chemical solvents. Though, it is often recommended to use the olive oils produced by mechanical techniques under supervised conditions. Olive oil is used in various industry verticals, such as food, cosmetics, and pharmaceuticals worldwide.

Olive oil has traditionally been an inevitable part of European and Mediterranean cuisine, gaining prominence in other places. It has numerous benefits, such as treating cardiovascular diseases, cancer, diabetes, etc. The European government has often promoted olive oil by celebrating World Olive Day on 26th November and other marketing campaigns and trade associations such as the Spanish Olive Interprofessional, which launched the Olive Oil World Tour campaign back in 2018.

The market has been segmented based on the type into virgin oil, refined oil, standard oil, and crude oil; by production mechanical and chemical. Based on distribution into business-to-business (B2B) and retail Individuals and geography into North America, South America, Europe, MENA, and Asia-pacific pacific regions to cover the global market prospects.

The nations abundant with olive as a natural resource, mainly beside the Mediterranean basin, are the largest producers of olive oil and its variants. However, other areas such as California, Argentina, Chile, Peru, South Africa, and Australia have favourable climates for olives and are recognized as olive oil producers.

Covid-19 Impact

The transmission of COVID-19 disease became the most significant impediment to global economic growth, adversely affecting the food and beverage sector. Disrupted supply chains for major agricultural goods also contribute to decreased food consumption. Olive oil is primarily used in preparing food, dressings, marinades, and food business.

Because of the disease outbreak, HoReCa was closed, which was a huge blow to olive oil consumption. Food producers' use of olive oil has also decreased as production has slowed.

During the second quarter of 2020, olive oil in other industry sectors such as cosmetic products and care products was also impacted.

However, at the end of the pandemic market is expected to grow significantly.

Under the health crisis of COVID-19, the demand for olive oil has increased tremendously at the global level, with the manufacturers processing the order round the clock. Though the demand of European nations was met, the importing nations suffered a shortage due to a series of lockdowns and disrupted supply chains.

Mediterranean culture and cuisine are on rising with international recognition.

Olive oil is an integral part of the Mediterranean diet and is recommended by official national dietary authorities for consumption under national dietary guidelines. The consumption of olive oil also reduces the chances of cardiovascular diseases, diabetes, and cancer. There have been promotional projects taken by the European Commission to increase the use of olive oils internationally, such as Med Diet, which promotes through the Mediterranean Virtual Museum, and Med Eat Research. There has been investment made by the members of international associations such as Spanish Olive Interprofessional, which launched the Olive Oil World Tour Campaign 2018. Great Olive Oil by the Greek Association of Industries and Processors of Olive Oil, Italian Consortium of Olive Oil Producers - The Perfect Food, was among several international promotional campaigns.

Innovative and higher quality olive oil product offerings

The demand for olive oil is increasing within European and Non-European countries at a constant rate. The manufacturers' rising demand calls for innovative product offerings, which are now serving olive oil with natural flavourings and added extracts such as garlic, chilli, basil, truffle, and many others. The move has been supported by the London International Olive oil competition for the best-flavoured olive oil category and high product quality.

Climate change perilous to the olive oil industry

The European government has been urging international allies to raise funds and alter the environmental policies to cope with the problem of climate change as it may cause danger to many industry verticals, including the olive oil industry. The Mediterranean regions have shared concerns about olive oil industry shrinkage due to rising temperature and decreasing water levels. The shrinkage and frequent fluctuations in olive oils have been debatable topics for trade unions based across the globe. There has been a constant need for innovation and a transparent mechanism for the traceability of olive oil to the place of origin, manufacturer, and marketer to protect the credibility and authenticity of olive oil.

Market Developments

February 2022- McEvoy Ranch unveils the release of their 2021 Harvest Estate-Produced Olive Oil. It Produces world-class olive oil. While their olive oil remains the highest quality and freshest in the US, their 2021 Harvest Olive Oil debuts with upgraded, renewed packaging and wholly new flavours.

July 2021- Salov debuted a premium brand. Filippo Berio is an Italian exporter of olive oils made from oil from Italy, Greece, Spain, and Tunisia. The name is associated with extra-virgin, virgin, and mild and light' oils, as well as balsamic vinegar, pesto, wine vinegar, and olives.

Regional Analysis

The olive oil production is primarily based on the Southern European and Mediterranean nations with bulk production and potential supply to other nations from France, United Kingdom, Netherlands, Switzerland, Belgium, Italy, Greece, and Spain.

With the changing food preferences, the olive oil trade has emerged in countries outside of European Union. The Mediterranean, particularly the United States, has gained third place in the consumption of olive oil. Europe continues to exhibit stable demand of around 3-5% every year. Moreover, Australia, China, Japan, and Canada have also experienced strong demand and growth in the consumption of olive oil.

Segmentation

By Product type

• Virgin Oil
• Refined Oil
• Pomace Oil

By Production

• Physical/ Mechanical
• Chemical

By Distribution

• Offline
• Supermarkets
• Hypermarkets
• Online

By Industry

• Retail Households
• Food and Beverage Industry
• HoReCa Industry (Hotels, Restaurants, and Catering)

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• Italy
• Spain
• United Kingdom
• Middle East and Africa
• Egypt
• South Africa
• Asia Pacific
• Australia
• China
• Japan
• India
• Thailand
• Taiwan
• Indonesia