Olive Oil Market - Strategic Insights and Forecasts (2026-2031)

The Olive Oil market is forecast to grow at a CAGR of 8.1%, reaching USD 20.5 billion in 2031 from USD 13.9 billion in 2026.

Olive Oil Market Trends:

Olive oil, extracted from olive fruit through mechanical processes such as grinding, pressing, centrifuging, and filtration, or occasionally via chemical solvents, is a versatile ingredient widely used in food, cosmetics, and pharmaceuticals. Mechanically produced olive oil, particularly extra virgin olive oil, is recommended for its superior quality and health benefits, including reducing risks of cardiovascular diseases, diabetes, and cancer. The olive oil market is experiencing robust growth, driven by its integral role in Mediterranean cuisine and increasing global demand across culinary, health, and beauty industries.

The market is segmented by type into virgin olive oil, refined olive oil, standard olive oil, and crude olive oil, with production methods divided into mechanical and chemical. Distribution channels include business-to-business (B2B) and retail, catering to diverse consumer preferences. Mediterranean countries like Italy, Spain, and Greece lead olive oil production due to favorable climates, while emerging producers such as California, Argentina, Chile, South Africa, and Australia contribute significantly. According to the World Integrated Trade Solution (WITS), 2023 olive oil imports were led by the United States (90.9 million kg), followed by Italy, Spain (34.8 million kg), the United Kingdom, and Portugal (21.7 million kg). Virgin olive oil imports were dominated by Italy, the United States, Spain, the European Union, and France.

Global olive oil production for the 2024/25 season is projected to increase by 23%, reaching 3.1 million tonnes, up 588,000 tonnes from the previous season’s 2.51 million tonnes, as reported by the International Olive Oil Council (IOC) and European Commission. The European government promotes olive oil through initiatives like World Olive Day (November 26) and organizations such as the Spanish Olive Interprofessional, enhancing market growth. Health-conscious consumers drive demand for extra virgin olive oil and organic olive oil, valued for their antioxidant properties and nutritional benefits. Sustainability and traceability are increasingly important, with consumers favoring ethically sourced and fair trade products.

The Asia-Pacific region is witnessing rapid growth due to rising disposable incomes and the adoption of healthy eating trends, while North America and Europe remain dominant markets. Challenges include climate variability, which impacts olive yields, and production costs, particularly for organic certifications. Innovations in sustainable packaging, such as recyclable bottles, and advancements in cold-pressing techniques are addressing these issues, supporting market expansion. The olive oil market continues to thrive, fueled by health benefits, culinary versatility, global trade, and consumer-driven sustainability, positioning it as a dynamic segment in the global food industry.

Olive Oil Market Growth Drivers:

• Innovative and higher-quality olive oil product offerings

The demand for olive oil is increasing at a constant rate in European and non-European countries. The manufacturers' rising demand calls for innovative product offerings, which are now serving olive oil with natural flavorings and added extracts such as garlic, chili, basil, truffle, and many others. The London International Olive Oil competition for the best-flavored olive oil category and high product quality supported the move.

• Mediterranean culture and cuisine are 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. Consuming 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 is promoted through the Mediterranean Virtual Museum, and Med Eat Research. Investments were made by the members of international associations such as the Spanish Olive Interprofessional, which launched the Olive Oil World Tour Campaign. 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.

Olive Oil Market Geographical Outlook:

• The olive oil market is segmented into five regions worldwide:

By geography, the olive oil market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as the ASEAN countries.

The Asia Pacific region is expected to see notable growth in the olive oil market. In 2023, India imported 1,693,890 Kg of virgin olive oil and fractions. This growth in olive oil is due to the expanding cosmetic industry, increased domestic consumption, and changing lifestyle scenarios.

North America is expected to have a significant market share for olive oil. The United States import of virgin olive oil and fractions has expanded from US$1,184.129 million in 2021 to US$1,657.415 million in 2023. This increased consumption is due to the known benefits of richness in healthy monounsaturated fats.

With the changing food preferences, the olive oil trade has emerged in countries outside the European Union. However, Europe continues to exhibit a 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.

Olive Oil Market Restraints:

• Climate change is significant to the olive oil industry. Governments worldwide have been urging international allies to raise funds and alter 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 the olive oil industry's shrinkage due to rising temperatures and decreasing water levels.

• The shrinkage and frequent fluctuations in olive oils have been debatable topics for global trade unions. 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.

Olive Oil Market Key Developments:

The major leaders in the Olive Oil market are Avril Group, Albert Heijn, Deoleo^[1], Sovena, Borges, Minerva, and Gallo. These key players implement growth strategies such as product launches, mergers, acquisitions, etc., to gain a competitive advantage. For Instance,

• January 2026: Tunisia set to overtake Italy as the world’s second-largest olive oil producer. Tunisia’s 2025–26 harvest is forecast at 380,000–400,000 tonnes, possibly reaching 500,000 tonnes, due to favorable weather, boosting its global export position.

• October 2025: Olivum expands sustainability certification program in Portugal. The leading Portuguese olive oil producer scaled its environmental, social, and economic sustainability certification for olive oil production, with the first certified bottles expected in the 2025/26 harvest.

• September 2025: Coração do Vale ultra-premium Portuguese olive oil enters the Indian market. The premium Baixo Alentejo olive oil brand launched in India at World Food India 2025, enhancing global distribution and consumer access to Portuguese extra virgin oils.

List of Top Olive Oil Companies:

• Avril Group

• Albert Heijn

• Deoleo

• Sovena

• Borges

Olive Oil Market Scope: