Olive Market: Overview
The market size for olive was USD 13.6 million in 2021, and it is projected to grow at a CAGR of 3.0 percent during the forecast period. The market is experiencing robust growth primarily due to the growing demand for olive fruit oil across the food service and retail channels. In addition, the increasing interest in trying out exotic cuisines has mainly contributed to the increased popularity of Olea europaea fruit oil across several regions worldwide. Olea europaea fruit oil is an integral part of a Mediterranean diet due to its various health benefits. The growing awareness regarding its health benefits is related to its omega-3 fatty acid content, which is growing its demand in the forthcoming years. Thus, in recent years, olive fruit oil has been extensively used as an ingredient in the manufacturing of dietary supplements and pharmaceuticals.
Growing awareness of the health benefits of olive oil to drive market growth. The recent recognition of the positive health effects of MUFAs has raised the demand for fats & oils containing MUFAs. Various clinical studies recently suggest that the consumption of omega-3 primarily helps cardiovascular health and several other functions in the body. The growing understanding of the importance of essential fatty acids grows the demand for olive fruit oil attributed to its high omega-3 content. In the past few years, olive fruit oil has gained remarkable popularity as a healthy oil supplying antioxidants, beneficial fatty acids, and vitamins. The other factor driving the market growth is the growing popularity of ethnic Mediterranean cuisines across the globe. Various cuisines such as Italian, Greek, and Spanish use olive fruit oil as an integral part of food preparation. The growing tourism, travel and interest in trying various exotic preparations help the growth of the global market. Additionally, the increasing popularity of raw, cold-pressed & artisanal edible oils fuels the market growth.
Furthermore, the acceptance of olive oil in culinary utilizes is likely to grow its market demand in food and beverage applications. The growing consumer demand for olive oil in the food and beverages market has kept production growth over the past years. Growing health consciousness will continue to drive consumer demand for the industry's products during the forecast year, resulting in increased revenue. Olive oil has been utilized as a multi-purpose culinary oil for ages all throughout the globe. This includes when it's ingested with cold foods like salad dressings and utilized as a pan-frying or deep-frying medium.
Olive Market: COVID-19 Impact
The demand and sale of olive oil have experienced a sudden decrease due to the COVID-19 pandemic. Nationwide lockdown in several countries resulted in the disruption of trade activities, which slowed the industry's growth. According to the U.S. Census Bureau, olive oil imports in 2020 were reduced by 13% in the U.S. as compared to those in 2019. However, concerns about immunity and overall health have re-established the demand for healthy oils, which is anticipated to continue during and after the pandemic. The increasing interest in home cooking owing to growing concerns related to food safety has increased the oil sale in Mediterranean countries. The re-establishment of oil trade networks is anticipated to boost market growth during the forecast period. Furthermore, in emerging economies, such as India, the demand for healthy edible oils enhanced amidst COVID-19 as olive fruit oil started to gain shelf spaces in Indian households for re-creating restaurant-like gourmet experiences at home. According to the CEO of Field Fresh Foods, Del Monte and Oleev brands experienced a 30% growth in their sales during 2020, while Cargill's brand Leonardo grew by nearly 15-20% in the last two quarters of 2020.
Olive Market: Drivers
Rise in Popularity of Artisanal and Minimally Processed Edible Oils to Drive Market Growth
The increasing interest of individuals in raw, natural, and cold-pressed cooking oils as they are allocated to be safer and healthier than their processed counterparts, has assisted the market growth. Edible oils that are hardly processed and manufactured under such claims are perceived as free from detrimental chemicals. Since no minimum processing is involved, it assists in retaining all the nutritional value, making it healthier. Moreover, the demand for virgin and extra-virgin olive oils has been boosted as they are minimally processed and have a solid fatty acid profile. Cold-pressed virgin oils have witnessed an increase in demand owing to their clean flavor and unaltered organoleptic properties, which further drive market performance. Furthermore, the increasing environmental sustainability concerns globally are likely to enhance the demand for edible olive fruit oil, which is natural and hardly processed during the forecast period.
Increasing Awareness for Products' Health Benefits to Fuel Market Growth
The increasing appreciation of fats and oils containing MUFAs due to their health-benefiting related has fueled their demand among consumers. Recently, several clinical studies have suggested that consuming omega-3 enriched products can assist in researching cardiovascular health and other body functions. The high omega-3 content in olive fruit oil has boosted its demand among consumers due to their raised understanding of the importance of essential fatty acid utilization in maintaining good health. As it supplies beneficial fatty acids, antioxidants, and vitamins, it has led olive fruit oil to gain remarkable popularity as a healthy oil around the globe. As ethnic Mediterranean cuisines gain popularity, it has significantly enhanced the demand for olive fruit oil. Its wide incorporation in several cuisines, such as Italian, Greek, and Spanish, has also influenced its increase in demand. Furthermore, increased travel and tourism and consumers willing to experiment with new flavors, textures, and exotic cuisines have assisted market performance.
Olive Market: Restraints
Presence of Low-cost Edible Oil Counterparts to Hamper Market Growth
The high cost of olive fruit oil poses a significant hindrance to its growth as consumers start to look for low-cost alternative oils to Olea europaea fruit oil, possessing the same nutritional properties. Edible oils, such as sunflower, coconut oil, canola, and others, are gaining huge traction among consumers owing to their high essential fatty acids content, which assist in maintaining overall health. This has influenced the manufacturers to invest in advanced technologies that assist retain the essential properties in these products, and minimum nutrients are lost during the processing of the oils. In addition, the comparatively low investment involved in producing sunflower and other vegetable oils further restrains the olive oil market growth.
Olive Market: Segment Overview
Growing Use of Dried Olive in Households & Foodservice Sector Propels Market Growth
The growing dried olive demand for cooking in households primarily fuels the market's growth. The increasing awareness related to the role of dried olive in maintaining good health has remarkably raised the demand for several types of olive in retail channels. There has been significant growth in demand for Olea europaea dried olive from the food service sector owing to its attributes in expanding flavor and texture without having a detrimental impact on health. Consumers' preference to enjoy their favorite meals without compromising their taste has majorly related to food service retailers adopting the oil. Dried olive is extensively used to manufacture several food products, primarily healthy snacks. The increasing popularity of healthy snacks among consumers has necessitated manufacturers to incorporate nutrient-rich ingredients, such as dried olive, to upgrade the value of the final product.
Utilization of Organic Olive in Pickle, Pickle Olive Dominated Market Growth
The pickled olive segment is expected to boost the demand for olives during the forecast period. Shifting consumer preference and increasing demand for organic products has been major trend in the food industry. In line with this, manufacturers of pickles are using organic olives to cater to consumer demand.
Olive Market: Regional Landscape
Europe to Dominate Market due to Growing Export of Olives in this Region
The European Union is the leading consumer, producer, and exporter of olives. For instance, according to the FAO, the harvested area of olives in Europe was noted at 4,936.3 thousand ha in 2017, which raised to 5,148.6 thousand ha by 2020. Also, according to the International Olive Council, the utilization volume of table olives in the European Union raised from 572.0 thousand metric tons in 2016-2017 to 592.3 thousand metric tons in 2018-2019. Europe holds a major share of global utilization, with Italy, Spain, Greece, and France accounting for over 80% of the consumption. For instance, the utilization of table olives in France was noted at 65 thousand metric tons in 2016-2017, which grew to 70 thousand metric tons by 2019-2020.
The olive market in North America is mainly driven by the increasing interest in healthy oils to prevent lifestyle-related health conditions from emerging owing to the hectic lifestyles of consumers. Studies to prove the beneficial effects of olive fruit oil utilization on health have significantly raised the advancements in the region. The increasing popularity of dietary supplements to maintain overall health and wellness has raised the demand for Olea europaea fruit oil for nutraceuticals and pharmaceutical sectors in the region. As per the International Olive Council (IOC), olive oil imports to Brazil enhanced by almost 29% during 2017-2018, Canada by 12%, and the US by 4%.
Global Olive Market: Competitive Landscape
In June 2021, Pietro Coricelli, an Umbrian olive fruit oil manufacturer and one of the world's largest distributors of olive fruit oil brands, announced that it had joined IBM Food Trust to utilize blockchain technology to trace its extra-virgin olive fruit oil. Furthermore, in August 2020, Orfeu, a firm located in Brazil, launched a new line of olive fruit oils. The company wants to meet the growing demand for this oil in Brazil and strengthen its position in the worldwide market.
Few of the players in the olive Market include Eugene Brunel, Two Brothers Organic Farms, Adamakis Olives, Servicentral Agrosevilla SL, Bell-Carter Foods, LLC., OliveOilsLand, Aceituna Verde SL, Mantziolive Hellas, Olive Line International, S.L., and OLIVES ESCAMILLA.
Regional Classification of the Global Olive Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Olive Market
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