Europe Olive Oil Market Outlook, 2030

Olive oil has been an integral part of European culture and cuisine for thousands of years, with its origins tracing back to ancient civilizations, particularly in the Mediterranean region. The history of olive oil in Europe dates to around 2000 BC, with evidence of its cultivation and use found in ancient Greece, Rome, and other Mediterranean societies. The olive tree (Olea europaea) is native to the Mediterranean Basin, and its oil has been used not only for cooking but also for medicinal, cosmetic, and religious purposes. Olive oil’s significance to the region was cemented as it became a symbol of peace, wisdom, and prosperity, especially in ancient Greek and Roman societies.

The olive tree itself is a durable, long-living plant, adapted to the Mediterranean climate, making it an ideal crop for the region’s arid conditions. The demand for olive oil in Europe has evolved significantly over the centuries. Today, the Mediterranean region, which includes countries like Spain, Italy, Greece, and Turkey, remains the heart of olive oil production.

Spain is the largest producer globally, accounting for over 40% of the world’s olive oil production. Italy and Greece are also major players, with each country producing and consuming large quantities of olive oil. Spain's dominance in the market is due in part to its vast olive tree groves, particularly in regions like Andalusia, which is known for its high-quality olive oils.

The olive oil market in Europe has faced challenges, including climate change, which has affected crop yields, and competition from lower-cost producers in countries outside Europe, such as Tunisia and Morocco. Despite these challenges, the demand for high-quality, extra virgin olive oil continues to grow, driven by consumers' increasing awareness of its health benefits and its versatility in cooking. In addition, the region’s focus on sustainability and organic production is further shaping the olive oil market, with many European producers moving toward environmentally friendly practices and certifications to meet consumer demand for ethically produced products.

The European Union is the largest consumer of olive oil in the world, driven by both domestic demand and exports. The EU’s Common Agricultural Policy (CAP) has also played a vital role in supporting olive oil production through subsidies and quality control standards, helping to maintain high production standards and improve the competitiveness of European olive oil in international markets.

According to the research report, "Europe Olive Oil Market Outlook, 2030," the Europe Olive Oil market is anticipated to add to more than USD 2.64 Billion by 2025-30. Olive oil's consumption in Europe is driven by both its health benefits and its culinary importance. The Mediterranean diet, which is rich in olive oil, is widely recognized for its positive effects on heart health due to the high content of monounsaturated fats and antioxidants in the oil. Olive oil is used in a variety of ways in European kitchens - from being drizzled over salads, pasta, and bread to being a base for sauces, marinades, and dressings.

It also plays a crucial role in traditional European recipes and is indispensable in dishes such as Spanish paella, Italian pasta, and Greek moussaka. In Italy, Tuscany and Puglia are renowned for their unique, high-end olive oils, with many smaller, family-owned farms producing some of the world’s best oils. Greece, with its rich culinary traditions, consumes more olive oil per capita than any other country, and its production is also among the highest in Europe. This category of olive oil now dominates the European market, as consumers are increasingly willing to pay a premium for high-quality, organic, and sustainably produced oils.

Italy, for example, has established a reputation for producing some of the finest EVOO in the world, with regions like Tuscany and Puglia leading the way. Similarly, Spain’s production of olive oil has expanded through the development of more advanced harvesting and pressing technologies, ensuring high-quality oil production on a larger scale. This growth in quality has been matched by the development of sophisticated branding and marketing strategies aimed at promoting the unique tastes, origins, and health benefits of olive oils from various European regions. Many olive oil producers in Europe are adopting organic farming techniques, which avoid the use of synthetic fertilizers and pesticides, in response to growing consumer demand for clean, natural products.

Market Drivers

• Cultural Significance and Culinary Traditions: Olive oil has been a staple of European diets for centuries, particularly in Mediterranean countries such as Spain, Italy, and Greece. Its deep-rooted cultural and culinary importance continues to drive demand for high-quality olive oil. In countries like Italy and Spain, olive oil is central to traditional cooking, used in everything from salads to pasta dishes. This cultural significance means that olive oil consumption is not just a trend but a daily practice for millions of Europeans. Furthermore, as international interest in Mediterranean cuisine grows, so does the demand for olive oil. The preservation of these traditional practices and the integration of olive oil into daily life helps sustain demand, particularly for high-end extra virgin olive oils (EVOO).
• Focus on Health and Wellness: In Europe, like in other parts of the world, there is growing awareness of the health benefits associated with olive oil, particularly extra virgin olive oil. It is increasingly recognized for its heart-healthy properties due to its high levels of monounsaturated fats and antioxidants, which can reduce the risk of cardiovascular diseases. As Europeans become more health-conscious and adopt diets that emphasize natural and unprocessed foods, the demand for olive oil continues to grow. This focus on health is fueling the premium olive oil segment, with consumers willing to pay a higher price for quality products.

Market Challenges

• Climate Change and Environmental Risks: Europe’s olive oil industry faces significant challenges due to climate change. Olive trees are highly sensitive to weather conditions, and factors such as droughts, heatwaves, and irregular rainfall patterns have increasingly affected production. For instance, Spain, the world’s largest producer of olive oil, has faced severe drought conditions in recent years, reducing harvests and impacting yields. Additionally, climate change is making some traditional olive-growing regions less suitable for cultivation, and the potential spread of pests and diseases, such as the olive fly, further jeopardizes crops. These environmental challenges lead to fluctuations in olive oil supply and prices, which in turn affect the stability of the industry.
• Price Volatility and Competition from Other Oils: The olive oil market in Europe has also been affected by price volatility, driven in part by fluctuations in harvest sizes due to weather conditions. Since olive oil production is concentrated in a few countries, any disruption in the supply chain can cause significant price increases. This, combined with increasing competition from other cooking oils, such as sunflower, canola, and palm oil, presents challenges for the olive oil industry. Consumers may choose less expensive alternatives, particularly during times of economic uncertainty, which could impact overall olive oil consumption. The competition from these oils, which are often cheaper to produce, poses a threat to the market share of olive oil, especially in regions where consumers are more price-sensitive.

Market Trends

• Sustainability and Eco-Friendly Practices: Sustainability has become a major trend in the European olive oil industry. As environmental concerns grow, both producers and consumers are placing a higher value on sustainably produced olive oil. Producers are increasingly adopting organic farming practices, reducing water usage, and minimizing the environmental footprint of production. Additionally, there is a growing demand for olive oils that are certified for environmental standards, such as organic certification or eco-friendly packaging. Consumers in Europe are becoming more conscious of the ethical and environmental impact of their purchases, and this trend is pushing producers to adopt more sustainable practices. For instance, the use of biodegradable or recyclable packaging is becoming more common, in line with the EU’s broader push towards reducing plastic waste.
• Digitalization and Traceability: Digitalization is transforming the olive oil industry in Europe. There is an increasing demand for transparency and traceability in food products, and consumers are keen to know the origin of their olive oil, its production methods, and its journey from farm to table. To meet these demands, many European olive oil producers are implementing digital tools that allow them to trace and authenticate the entire supply chain. Blockchain technology, for example, is being used to ensure transparency, enabling consumers to track the provenance of their olive oil and verify its authenticity. This digital push not only helps protect the reputation of high-quality producers but also builds trust with consumers who are concerned about issues like fraud or mislabeling. As technology advances, this trend is expected to continue growing, with more consumers opting for brands that provide detailed information about the sourcing and quality of their olive oil.

Extra Virgin Olive Oil (EVOO) leads the European olive oil industry due to its superior quality, health benefits, and alignment with consumer preferences for natural, high-quality, and sustainable food products.

Extra Virgin Olive Oil (EVOO) has emerged as the leading type in the European olive oil industry primarily because of its exceptional quality, health benefits, and its ability to meet growing consumer demand for natural and sustainably produced food products. EVOO is made from pure, cold-pressed olives without the use of chemicals or heat, preserving the natural flavors, antioxidants, and nutrients inherent in the fruit. This level of purity and quality distinguishes EVOO from other types of olive oil, such as refined olive oil or olive pomace oil, which undergo processing methods that strip away much of the beneficial compounds.

For Europeans, EVOO represents not just a cooking ingredient but a symbol of the Mediterranean diet, a lifestyle widely recognized for its health-promoting properties. Studies have shown that the Mediterranean diet, which heavily incorporates EVOO, is linked to reduced risks of heart disease, stroke, and certain cancers, making EVOO highly attractive to health-conscious consumers. Moreover, the oil is rich in monounsaturated fats, particularly oleic acid, which are considered heart-healthy fats that support cardiovascular health. The antioxidants in EVOO, such as polyphenols and vitamin E, also provide anti-inflammatory and anti-aging benefits, further boosting its appeal.

The Mediterranean region, particularly countries like Spain, Italy, and Greece, has deep-rooted traditions in olive cultivation, and EVOO is often a key element of local cultural heritage. Consumers in Europe increasingly prioritize authenticity and quality in their food choices, and EVOO, with its designation of origin and specific production standards, resonates with this demand for high-quality, traceable, and artisanal products. Additionally, European regulations, such as the European Union’s Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI), protect EVOO from adulteration and ensure that only oils from certain regions with strict production standards can be marketed as EVOO.

The growth of the Foodservice and HoReCa (Hotels, Restaurants, and Catering) end-user sector in the European olive oil industry is driven by the rising demand for high-quality, versatile ingredients that meet consumer preferences for healthier, more authentic, and sustainable culinary experiences.

The Foodservice and HoReCa (Hotels, Restaurants, and Catering) sector is increasingly becoming a major driver of growth in the European olive oil industry. This shift is largely attributed to the growing consumer demand for high-quality, healthier, and authentic food options in dining establishments, alongside the evolving trends in hospitality and catering. As consumers become more discerning and health-conscious, there is a notable preference for food that is both nutritious and flavorful, leading restaurants, hotels, and caterers to source premium ingredients like Extra Virgin Olive Oil (EVOO).

Olive oil, particularly EVOO, is highly regarded for its health benefits, including its role in heart health, weight management, and anti-inflammatory properties. The Mediterranean diet, with olive oil as a central component, has gained global recognition for its health-promoting attributes, and this has influenced foodservice providers across Europe to incorporate it into their menus. Additionally, EVOO is celebrated for its versatility in both cooking and as a finishing touch for dishes, making it an essential ingredient in a wide variety of food offerings from salads and pasta to grilled meats and seafood.

The demand for higher-quality products also reflects a broader movement within the foodservice industry toward offering more authentic, local, and sustainable food experiences. European restaurants and catering businesses increasingly prioritize high-quality, traceable ingredients that are not only good for health but are also sourced ethically and sustainably. This aligns with the growing consumer interest in sustainability, environmental consciousness, and transparency in food sourcing. Furthermore, the HoReCa sector is keenly aware of evolving culinary trends, including the rising demand for plant-based and Mediterranean diets, which heavily feature olive oil as a staple ingredient.

The growth of organic olive oil in the European olive oil industry is driven by the increasing consumer demand for healthier, environmentally sustainable, and ethically sourced food products that align with a growing awareness of the harmful effects of chemicals and pesticides in agriculture.

The rise of organic olive oil in the European olive oil industry is a direct response to the growing consumer demand for healthier, more environmentally sustainable, and ethically produced food options. As awareness of the potential risks associated with the use of pesticides, chemicals, and artificial fertilizers in agriculture increases, consumers are increasingly seeking out organic alternatives that offer a safer and more natural product. Organic farming methods emphasize the use of natural fertilizers, crop rotations, and pest control methods, which not only contribute to healthier soil but also result in higher-quality food products.

In the case of olive oil, organic farming practices ensure that the olives are grown without the use of synthetic pesticides, herbicides, or fertilizers, which can leave residues on the fruit and compromise both its flavor and nutritional value. This natural approach resonates with European consumers who are becoming more health-conscious and increasingly concerned about the impact of chemicals on their bodies. As organic food consumption has surged across Europe, organic olive oil has become a staple in many households, with consumers viewing it as a healthier, purer option compared to conventional olive oils.

Organic olive oil is prized for its rich taste, higher antioxidant content, and lack of potentially harmful additives, making it especially popular among those seeking a clean, whole-food diet. Alongside health considerations, sustainability is a key factor in the growing popularity of organic olive oil. With the ongoing concerns about climate change, biodiversity loss, and the environmental degradation caused by industrial farming practices, many European consumers are choosing organic products as a way to reduce their environmental footprint.

Supermarkets and hypermarkets are leading the European olive oil industry due to their wide reach, convenience, competitive pricing, and ability to offer a diverse range of high-quality olive oils that cater to different consumer preferences.

Supermarkets and hypermarkets are the dominant retail channels in the European olive oil industry, driven by their broad accessibility, convenience, and capacity to cater to a wide range of consumer needs. These large-scale retail outlets have the infrastructure to stock an extensive variety of olive oil products, from budget-friendly options to premium Extra Virgin Olive Oil (EVOO) brands, making them a one-stop shopping destination for consumers. The extensive shelf space available in supermarkets and hypermarkets allows them to offer a diverse selection of olive oils, catering to different tastes, budgets, and dietary preferences, which is key to meeting the demands of a wide consumer base.

In recent years, as consumer interest in olive oil has grown, these large retailers have been able to expand their offerings to include organic, flavored, and region-specific olive oils, appealing to both everyday shoppers and more discerning consumers seeking premium products. The convenience factor of supermarkets and hypermarkets also plays a crucial role in their dominance.

These retail outlets are easily accessible in both urban and rural areas, with large networks of stores across Europe. The ease with which consumers can find high-quality olive oils in their local supermarkets or hypermarkets is a significant draw, as it eliminates the need for specialty stores or online ordering, making it highly convenient for busy shoppers.

The presence of these outlets also benefits from the increased foot traffic generated by the variety of products available, which can encourage impulse purchases of olive oil alongside other grocery items. Competitive pricing is another factor that strengthens supermarkets and hypermarkets’ leadership in the European olive oil market. Due to their large-scale purchasing power, these retail chains can negotiate better deals with suppliers, allowing them to offer olive oil at more attractive prices compared to smaller, specialty stores.

Spain leads the European olive oil industry due to its dominant production capacity, favorable climate conditions, extensive olive cultivation, and strong export infrastructure, making it the world’s largest producer and exporter of olive oil.

Spain is at the forefront of the European olive oil industry, primarily because it boasts the largest olive oil production capacity in the world. The country is responsible for over 40% of global olive oil production, a significant portion of which comes from the southern region of Andalusia. This dominance can be attributed to a combination of factors, including Spain's favorable climate, extensive land dedicated to olive cultivation, and its long-standing olive oil heritage. The Mediterranean climate, with its hot summers and mild winters, provides ideal conditions for olive trees to thrive, making Spain an optimal location for large-scale olive farming.

The country’s vast landscape, particularly in Andalusia, is covered with millions of olive trees, many of which are grown in expansive, high-density groves that maximize olive yield and ensure a steady supply of raw material for olive oil production. Spanish olive oil is also synonymous with high quality, which has been maintained through both traditional and modern farming techniques. Over the centuries, Spain has developed expertise in olive oil production, with numerous varieties of olives grown across the country, each contributing unique flavor profiles to the oil.

The most widely cultivated olive varieties in Spain include the Picual, Hojiblanca, and Arbequina, which offer distinct tastes and characteristics, making Spanish olive oil highly versatile and popular both domestically and internationally. Furthermore, Spain has become a leader in innovation within the olive oil industry, continually refining production methods to improve quality, efficiency, and sustainability. Technological advancements in olive oil extraction, such as cold-pressing methods and the use of more precise harvesting techniques, have enabled Spanish producers to offer consistently high-quality oils with superior flavor and nutritional value.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Olive Oil Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Extra Virgin Olive Oil (EVOO)
• Virgin Olive Oil
• Refined Olive Oil
• Others (Blended & Flavored Oils)

By End User

• Households/Residential
• Foodservice & HoReCa
• Cosmetics & Personal Care
• Pharmaceutical Industry
• Industrial & Others(soap and detergent manufacturing, textile and leather processing, lubricants, biodiesel production, wood polishing, and premium pet food)

By Source

• Conventional
• Organic

By Distribution Channel

• Supermarkets & Hypermarkets
• Online Retail
• Convenience Stores
• Specialty Stores
• Others (Direct Sales & HoReCa)

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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