The global Olive Oil Market is estimated to be valued at USD 22.51 Bn in 2024, exhibiting a CAGR of 5.5% over the forecast period (2024-2031). The market is witnessing high growth owing to rising health consciousness among consumers and growing preference for premium products. Furthermore, innovations in olive oil extraction process and new product launches catering to various regional tastes are further fueling the market expansion.
The growth of the global olive oil market is driven by two major factors. Firstly, growing awareness about the various health benefits of olive oil such as reducing risks of heart diseases, diabetes, and cancer is driving its demand globally. Several clinical studies have proven olive oil's anti-inflammatory and antioxidant properties which are encouraging more people to adopt olive oil in their daily diets. Secondly, rising disposable incomes and growing preference for premium products is propelling the premium and extra virgin olive oil segment. Leading brands are effectively promoting the superior quality and regional authenticity of their extra virgin olive oils which is attracting health-conscious consumers willing to pay higher prices for better quality.
Growing Health Awareness about the Benefits of Olive Oil
Olive oil is considered one of the healthiest cooking oils due to its high monounsaturated fat content. Consumption of olive oil has been linked to reducing risks of heart diseases, diabetes, neurodegenerative diseases, and certain types of cancers. With rising health consciousness among consumers globally, the demand for olive oil is growing considerably. Many people are substituting other cooking oils with olive oil to get the associated health benefits. The nutrition and wellness trend is a major positive factor driving the growth of the global olive oil market.
Rising Income Levels and Expanding Middle Class in Emerging Economies
Countries like China, India, Brazil, and other Southeast Asian nations have seen strong economic growth over the past few decades leading to a rise in disposable incomes. As income levels increase, people are able to spend more on premium and healthier food products. Olive oil demand is increasing in emerging economies as their middle-class population with higher spending power expands rapidly. The improving economic conditions in developing markets have made olive oil more accessible and affordable for local consumers. This change in demographics is working as a key growth driver for the global olive oil market.
Volatility in Olive Oil Prices
Olive oil prices fluctuate substantially depending on factors like weather conditions, crop yields and global supply-demand dynamics. Adverse weather that damages olive crops can decrease production and push up prices. Similarly, bumper harvests lead to excess supply and lower prices. Unpredictable price volatility poses risks for both olive oil producers and buyers. It becomes difficult to fix stable profit margins or selling price quotes under volatile market conditions, which acts as a restraint.
Strong Competition from Substitute Oils
While the olive oil demand is rising, it still faces competition from other popular vegetable oils like sunflower, soybean, corn, and palm oil. These oils offer lower prices and are widely used across cuisines globally. Also, their production does not depend on climatic conditions like olive crops. The easy availability and competitive prices of substitutes limit the potential growth prospects of olive oil to some extent. Producers have to focus on differentiating their products through quality, taste, healthfulness to stay ahead in this competitive landscape.
Expanding Olive Oil Usage in Cosmetic and Pharmaceutical Industries
Olive oil finds increasing applications beyond cooking as its therapeutic properties are recognized. The oil is used as a key ingredient in natural cosmetic products like soaps, hair oils, body lotions due to anti-aging and moisturizing properties. Pharmaceutical companies are also exploring uses of olive oil extracts for conditions like cardiovascular diseases, cancer treatment due to antioxidant-rich composition. This growing industrial demand opens up new opportunities for olive producers to penetrate product categories beyond food.
Rising Export Opportunities in Non-traditional Markets
While European countries like Italy, Spain, and Greece have traditionally dominated olive oil production and exports, new markets are emerging. With higher disposable incomes and an affinity for Mediterranean cuisine, countries like the U.S., China, India, and Brazil are becoming important olive oil importers. Producers now have a chance to boost exports and tap into developing overseas demand from non-traditional regions. Strategic focus on international marketing, packaging as per local preferences can help boost export revenues for olive growers over the long run.
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Key Developments
- In March 2024, Neolea launched a new olive oil product packaged in an aluminum can with a reusable cap. This innovative packaging is designed to improve convenience and promote sustainability for consumers.
- In June 2021, Abbie's Extra Virgin Olive Oil was packaged in Italy. This versatile oil is perfect for salads and dressings, as well as for cooking meat, fish, and vegetables. It can also be used to prepare sauces. Abbie's Extra Virgin Olive Oil is offered in two convenient sizes: 5 liters and 1 liter.
- In January 2021, Del Monte refreshed its product lineup in India by launching a one-liter pack, which is being celebrated as the country's first Olive Pomace Oil.
- In December 2020, Colavita introduced its Italian Extra Virgin Olive Oil to the Indian market. This product is 100% authentic Italian extra virgin olive oil, made according to a family recipe and adhering to an ISO 9001 quality management system. It features a harmonious blend of fruity and spicy notes, showcasing its Italian authenticity and freshness. Furthermore, it is versatile enough to be used in salads and a variety of other dishes.
Key Players
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.
