OLIVE OIL MARKET ANALYSIS
The global olive oil market is estimated to be valued at USD 22.51 Bn in 2024 and is expected to reach USD 32.74 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.5% from 2024 to 2031.
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Olive oil is widely used in cooking and for its perceived health benefits which is supporting the market growth. The increasing health-conscious population globally is driving the demand for olive oil. The market is experiencing increased demand from developing economies due to rising disposable incomes and changing food consumption habits. Consumers are shifting preferences towards natural and healthy edible oil options like olive oil which is helping drive market revenues.
Market Driver - Increasing health awareness
People nowadays are increasingly becoming health conscious and aware about the benefits of healthy cooking oils. With growing research studies highlighting various health benefits of olive oil like reducing chances of heart diseases and lowering bad cholesterol, more households are replacing other commonly used oils with olive oil in their daily cooking. Olive oil is known to contain antioxidants that can help reduce inflammation in the body linked to many lifestyle diseases. The high monounsaturated fat content in olive oil also helps maintain healthy cholesterol levels. Food magazines and health websites regularly publish articles about Mediterranean diet and how lightly cooked or cold-pressed olive oil forms an integral part of this diet known for various health benefits. Doctors and nutritionists also recommend use of olive oil over other oils like sunflower or soybean oil. Young families with small kids want to adopt healthier cooking practices and are motivated to include olive oil as their primary cooking medium. Even those looking to manage or lose weight prefer olive oil in moderate quantities over other oils for its reputation of being a heart-healthy fat. The trend of 'wellness' and focus on preventive healthcare is driving growth in consumption of naturally nutritious foods like olive oil globally. Increase in number of lifestyle diseases has prioritized health factors over price while choosing kitchen staples like cooking oils at home. All these developments have cumulatively made olive oil one of the fastest growing segments in global edible oil market in past few years.
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Rising application in food industry
Apart from rising popularity among households, olive oil is increasingly finding newer application areas in the commercial food & beverage industry as well. With growing experimentation in culinary practices, many restaurants and food chains are replacing less healthy oils used for deep frying or sautéing with healthier extra virgin olive oil. The mild flavor also allows olive oil to lightly flavor various dishes without overpowering natural tastes. This quality has also led to rise in olive oil-based salad dressings, dips and spreads in packaged food market. Organic and cold-pressed olive oil varieties are in high demand from cafes and premium food joints looking for ingredient purity and quality. Rapid growth of fast casual dining segment focusing on healthy menus gives ample opportunities to olive oil suppliers. Food manufacturers are also innovating with olive oil-based mayonnaise, sauces, and pasta/pizza toppings given rising health-conscious segment among consumers. Olive oil has emerged as solution for producers looking to offer heart-healthy claims for their food products. The multi-cuisine trend also exposes consumers worldwide to Mediterranean flavors where olive oil is used so abundantly, further boosting its acceptance in novel applications. Overall, the 'clean label' focus and versatility of olive oil makes it a favorite choice for food companies seeking natural and mildly flavored alternatives.
Key Takeaways from Analyst:
The global olive oil market has immense growth potential driven by rising health consciousness among consumers globally. As consumers are increasingly aware about the various health benefits of olive oil like reducing risks of heart disease and cancer, the demand for olive oil is surging. Another major driver is the growth in foodservice industry as olive oil is widely used in restaurants and cafes for cooking and as a condiment. However, the market faces restraint from its high price compared to other vegetable oils which impacts demand in price sensitive regions.
Europe dominate global olive oil production due to suitable climate and long tradition of olive growing in the region. However, growth in consumption is higher in North America and Asia Pacific creating new opportunities. The US market in particular provides excellent export opportunities for Mediterranean producers to meet growing demand for better-for-you oils in the country. China also presents immense scope for future growth. Market players could focus on educating customers in developing countries on various uses and health benefits of olive oil to boost demand. Overall, innovations to reduce production costs and develop new product categories would help the olive oil market maximize its future potential on a global scale.
Challenges: Seasonal Availability
One of the major challenges faced by the global olive oil market is its highly seasonal nature of production. As olives are harvested primarily during the fall season, from October to December, the supply of olive oil fluctuates greatly depending on the crop yield. This leads to unpredictability in prices and supply chain management throughout the year. Due to climatic conditions as well as incidence of diseases, the crop yields can see substantial variations year-on-year. This poses difficulties for olive oil producers to maintain consistent supply to meet demand. It also challenges importers and brand owners to effectively plan their procurement and inventory management. Unexpected drops or surges in supply disrupt the trade flows and impact overall market stability in both producing and consuming regions.
Opportunities: Emerging markets in Asia Pacific & Latin America
The global olive oil market sees promising opportunities in various emerging economies of Asia Pacific and Latin America. With rising health consciousness and increasing western influence on diets, the consumption of olive oil is growing steadily in many developing countries. Countries like India, China, Brazil, and Mexico are key focus areas due to their huge population bases and rapid economic growth. As disposable incomes rise in the expanding middle class segments, the demand for premium health oils like olive oil is on the ascend. Domestic production still remains limited in these regions, creating major import reliance. This presents lucrative market entry and expansion opportunities for global olive oil producers, retailers as well as import/export companies to tap into these emerging lucrative consumer markets.
Insights by Product Type: Extra Virgin Olive Oil Dominates Due to Health Benefits
The extra virgin olive oil segment is expected to contribute 49.6% share of the global olive oil market in 2024, owing to its numerous health benefits. As the least processed grade of olive oil, extra virgin olive oil retains the highest concentration of polyphenols and antioxidants that provide significant health advantages over other types. Medical research has extensively linked extra virgin olive oil consumption to reduced risk of heart disease, certain cancers, and neurodegenerative conditions. The abundance of monounsaturated fatty acids in extra virgin olive oil also help control cholesterol levels and weight management.
The health-conscious consumer base has significantly grown in recent decades, driving stronger demand for nutritious and natural food products. Extra virgin olive oil perfectly caters to this need, with its wholesome image and absence of any refining process. Produced directly from olives using solely mechanical extraction methods, extra virgin olive oil maintains the maximum nutritional value of the source fruit. Its clean label appeals greatly to consumers seeking minimally processed foods. Significant marketing efforts by olive oil associations have also raised widespread awareness about the antioxidant richness and therapeutic properties of extra virgin olive oil.
Traditional Mediterranean diets centered on extra virgin olive oil have proven exceptionally beneficial from a wellness perspective. Due to tastes acquired from ethnic cuisines, immigrant populations in countries like North America and Asia have further amplified demand. High-end foodservice and hospitality sectors also rely heavily on extra virgin olive oil to enhance the perceived quality and wellness quotient of menu items. Alongside health trends, extra virgin olive oil witnesses robust demand from the conscientious fine dining segment worldwide.
Insights by application: Cooking and Frying Leads Application due to Versatility
Within application, the cooking and frying segment is expected to account for 44.5% share of the global olive oil consumption in 2024. Olive oil possesses thermal stability and a high smoke point, making it an excellent medium for various culinary preparations involving heat. Its mild flavor also enhances the innate tastes of a diverse range of global cuisines without overpowering delicate elements. The wide versatility of olive oil has made it a kitchen staple across cultures. In Mediterranean nations with long-embedded olive oil traditions, it remains the predominant fat used for uncomplicated weeknight cooking and Sunday family meals alike. Meanwhile, Asian home cooks have steadily adopted olive oil to sauté and stir-fry proteins, vegetables and complex dishes. The growing popularity of Mediterranean and calorie-conscious fusion cuisines has boosted cross-continental usage.
Beyond household cooking, olive oil enjoys extensive popularity within commercial food services and restaurant industries worldwide. Its clean flavor, smoke point and natural image align well with contemporary consumer preferences for healthy yet indulgent culinary experiences. Live cooking demonstrations at fine dining establishments heavily feature olive oil for its lip-smacking qualities. Quick service and packaged food sectors also utilize olive oil blends for appetizing finished products. Olive oil’s diverse functionality and healthful reputation have cemented its leadership within the broad cooking and frying application segment. Demand looks set to stay robust with further mainstreaming of global cuisines and health-conscious lifestyles.
Insights by distribution channel: Widespread Accessibility
The distribution channel segment is expected to hold a significant 48.7% share of the olive oil market in 2024. This segment encompasses the various avenues through which olive oil products reach consumers and end-users. Supermarkets and hypermarkets dominate this segment, accounting for around 60% of the distribution channel. These large-scale retail outlets offer consumers a wide selection of olive oil brands and varieties, providing convenience and accessibility. Specialty food and gourmet stores, including dedicated olive oil shops, make up approximately 20% of the distribution channel segment. These stores cater to consumers seeking high-quality, artisanal, and premium olive oil products, offering a more personalized shopping experience.
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The olive oil market is predominantly dominated by Europe, accounting for a substantial 63.5% share of the global olive oil market in 2024. This regional dominance is rooted in Europe's long-standing tradition and deep cultural connection with olive oil production and consumption. Mediterranean countries, such as Spain, Italy, and Greece, are the epicenters of the European olive oil industry. These nations have ideal climatic conditions, well-established olive cultivation practices, and a vast network of small-scale producers and artisanal brands. The European market is characterized by a strong consumer preference for high-quality, premium olive oils, with an emphasis on provenance, terroir, and artisanal craftsmanship. Regulatory frameworks, such as the European Union's Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) schemes, have also contributed to the preservation and promotion of the region's olive oil heritage. These certifications help protect the authenticity and quality of traditional olive oil varieties, further solidifying Europe's position as the global leader in the market.
While Europe maintains its dominant position, the North America market has emerged as the fastest-growing region for olive oil, driven by a combination of factors. Increasing health consciousness among consumers, coupled with a growing appreciation for Mediterranean cuisine and culinary experiences, has fueled the demand for high-quality olive oil in this region. The U.S., in particular, has witnessed a significant surge in olive oil consumption, with consumers seeking out premium, artisanal, and specialty olive oil products. This trend has been further amplified by the rise of gourmet food stores, specialty retailers, and e-commerce platforms, which provide greater accessibility and exposure to a diverse range of olive oil offerings.
Olive Oil Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 22.51 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 5.5% | 2031 Value Projection: | US$ 32.74 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Cargill Inc., SOVENA, DEOLEO, COLAVITAS.p.a., Olivezia, Stone Axe Estate, PORTTABLE Produtos Alimentares Lda., Castellodi Albola, Planeta, Empresa Esporão S.A., Domaine De Marquiliani, Conagra Brands, Modi Naturals Ltd., California Olive Ranch, Inc., Carapelli Firenze S.p.A, AG Organica, Artem Oliva, Avi Naturals, Hashmitha Enterprise, and Joshi Agrochem Pharma Pvt Ltd. |
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*Definition: The global olive oil market is the worldwide market for olive oil, primarily extra virgin olive oil. It includes companies that produce, process, bottle, distribute, and market olive oil for both retail and foodservice customers around the world. The major consumers of olive oil globally are European countries like Italy, Spain, Greece, and Portugal which have a long tradition of olive oil consumption in their cuisines.
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About Author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
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