The Olive Oil market is expected to grow at a compound annual growth rate of 3.17% over the forecast period to reach a market size of US$7.097 billion in 2025 from US$5.885 billion in 2019.
Olive Oils are extracted from the olive fruit by and is generally manufactured by physical or mechanical processes by techniques such as grind, press, centrifuge, filtration and various others. It can also be prepared chemically by the usage of chemical solvents. Though, it is 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 pharmaceutical around the world.
Olive oil has traditionally been inevitable part of European and Mediterranean cuisine which is now gaining prominence in other places too as it has numerous benefits such as serving in treatment of cardiovascular diseases, cancer, diabetes and many more. The European government has often promoted the use of olive oil through celebration of World Olive Day on 26th November, and other marketing campaigns and trade associations such as Spanish Olive Interprofessional which launched Olive Oil World Tour campaign back in 2018.
The market been segmentation has been made based on the type primarily as Virgin Oil, Refined Oil, Standard Oil, Crude Oil, By Production Mechanical, Chemical. On the basis of distribution into Business to Business (B2B) and Retail Individuals and Based on the geography into North America, South America, Europe, MENA and Asia-pacific pacific regions in order to cover the global market prospects.
The nation abundant with olive as natural resource which are mostly beside the Mediterranean basin are the largest producers of Olive oils and its variants. Though, other areas as California, Argentina, Chile, Peru, South Africa and Australia are having favorable climate for olives and are recognized as Olive oil producers.
Under the health crises of covid-19, the demand for olive oil has increased tremendously at global level with the manufacturers processing the order round the clock. Though the demand of European nations were met but the importing nations suffered the shortage due to series of locked downs and disrupted supply chains.
Mediterranean culture and cuisine on rise with International recognition
Olive oil is important part of Mediterranean diet and has been 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 has been promotional projects taken by European commission to increase the use of olive oils internationally such as Med Diet which promotes through 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 Olive Oil World Tour Campaign 2018. Great Olive Oil by Greek Association of Industries and Processors off Olive Oil, Italian Consortium of Olive Oil Producer’s - The Perfect Food were among several international promotional campaigns.
Innovative and higher quality Olive Oil product offerings
The demand of olive oil increasing constantly within European and Non-European countries at the constant rate. The rising demand calls for innovative product offering by the manufacturers which is 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 London International Olive oil competition for the best flavoured olive oil category and for high product quality.
Climate change perilous to Olive Oil industry
The European government has been urging international allies to raise funds and alter the environment policies to cope with the problem of climate change as it may cause danger to many industry verticals including Olive oil industry. The Mediterranean regions have shared a concern of olive oil industry shrinkage due to rising temperature and decreasing water levels over the period of time, the shrinkage and frequent fluctuations in of olive oils has been debatable topics for trade unions based across the globe. There has been constant need for innovation and transparent mechanism for the traceability of the olive oil to the place of origin, manufacturer and marketer to protect the credibility and authenticity of olive oil.
The olive oil production is primarily based out of the Southern European and Mediterranean nations with bulk production and source of potential supplying to other nations from France, United Kingdom, Netherlands, Switzerland, Belgium, Italy, Greece and Spain.
With the changing food preferences, the olive oil trade has seen emergence in countries outside of European Unions and Mediterranean, particularly United States, has gained the third place in consumption of olive oil. Europe continues to exhibit stable demand of around 3-5% on yearly basis. Moreover, Australia, China, Japan and Canada have also experienced strong demand and growth in consumption of Olive oil.