With a larger population worldwide realising the benefits of including natural, raw, cold-pressed oils in their routine diets, the approximately US$10 Bn olive oil market is all set to explore lucrative revenue generation opportunities in the near future.
Rising Demand for Nutrient-rich Oils to Favour Olive Oil Market Growth
Recent trend of maintaining wellness and health by shifting towards consumption of health promoting oils remains influential in driving the growth of the olive oil market. Since past few years, consumer inclination towards using vegetable oil and oil obtained from other natural sources has surged due to rising prevalence of lifestyle disorders and health conditions. Modern day sedentary and stressful lifestyle of individuals has resulted in rising cases of diabetes, obesity, and cardiovascular diseases. Growing awareness regarding this situation along with long-staged ill effects of consumption of excess fats such as coronary heart diseases, and hypertension are primary factors influencing use of nutrient-rich oils such as olive oil. Thus, inclusion of nutrient-rich oil in regular diets to improve and maintain healthy lifestyle is expected to drive growth of the olive oil market.
Furthermore, consumer awareness regarding health benefits has resulted in them scrutinising label claims before purchasing oil products. On the back of rising health benefits of vegetable oils with health claims such as high monounsaturated fatty acids (MUFA), omega 3, vitamin E, and other micro and macro nutrients, their demand has been witnessing an upswing. That said, olive oil being high in monounsaturated fatty acids and antioxidants, supports efficient functioning of the heart. This factor is expected to influence its consumption significantly, in turn fuelling the growth of olive oil market.
Rising Awareness Regarding Potential Health Benefits Accounts for Olive Oil Market Expansion
Gluten-free nature of olive oil makes it an apt choice that promotes health and imparts taste to food as compared to conventional oils. Moreover, being rich in antioxidants and oleic acid, olive oil facilitates reduction of inflammation and reduces risks of heart disorders, and other chronic ailments. In addition, consumption of olive oil also aids in treating osteoporosis, and rheumatoid arthritis. It also supports in reducing possibilities of developing chronic diseases such as type-2 diabetes, stomach ulcers, and stomach cancer. Apart from these advantages, olive oil is also effective in treating hair fall, and used in skin nourishment, thus paving new avenues for its use in the pharmaceutical and cosmetics sector. In this backdrop, increasing awareness regarding its consumption is expected to bolster the growth of olive oil market.
A promising Import-Export Scenario Significantly Influences Global Olive Oil Market
The olive oil market is highly impacted by its import-export scenario worldwide. Originating from the Mediterranean, olive oil gained significant traction across several developed and emerging economies particularly in culinary use. The consumption of olive oil has grown significantly since the recent years; however, its supply has been witnessing a bottleneck. For instance, according to IOC (International Olive Council), consumption of olive oil globally has exceeded its production since past three years. In 2020, around 3 MT olive oil was produced while consumption reflected a count of 3.13 MT that year. Likewise, in 2021, 3.10 MT of olive oil was produced with a consumption of more than 3.2 MT. Post COVID-19 scenario transformed the consumer behaviour as they shifted towards using better quality products, which has resulted in an increased usage of olive oil.
This factor resulted in an increase in imports of olive oil across the globe. For instance, as per IOC, an 8% increase in the imports of olive oil was observed in China. In 2020, imports of olive oil in European Union surged significantly, however, reflected a slowdown in 2021. On the other hand, exports grew by 5.2% in 2021 in Spain, making it a leading exporter with a market share of 38% from a global perspective. Among leading exporters of olive oil, Morocco has witnessed a continual increase in volumes since past few years. This roller-coaster scenario apropos to export and import of olive oil is poised to impact the olive oil market growth.
Virgin Olive Oil Garners Strong Traction in Global Olive Oil Market
Demand for olive virgin oil is expected to soar at a momentous rate in the forthcoming years on the back of its health benefits. The consumption of virgin olive oil among health conscious consumers has been increasing and is expected to maintain the status quo. Oleic acid, and omega 3 present in virgin olive oil facilitates prevention of disorders such as cardiovascular diseases, high blood pressure, osteoporosis, and Alzheimer’s. Moreover, with technological advancements in processing of olive oil, manufacturers can retain high amounts of nutrients and vitamins, thus enhancing their functional properties. This factor has propelled the consumption of virgin olive oil, in turn largely contributing towards value growth of the olive oil market.
North America Remains the Prime Importer in Global Olive Oil Market
Developed nations in North America are expected to showcase high growth potential in the olive oil market. This is mainly owing to increasing consumption of olive oil across countries such as the US, and Canada backed by rising health consciousness consumer segment. Furthermore, imports of olive oil in North America have been on an upswing since the past few years. For instance, according to IOC, the United States is a significant importer of olive oil representing a share of 24% from a global standpoint. Currently, the US is the largest importer of olive oil outside of Europe with over 400,000 tons of projected import in the season.
Olive Oil Market: Competitive Landscape
A few of the major companies in the olive oil market include Salov SpA, Gallo, Cargill Inc., Sovena Group, Bertolli Inc., and Del Monte Foods Inc. New product launches, acquisitions, and collaborations have been witnessed in the olive oil market.
Recent Notable Developments
The Global Olive Oil Market Is Segmented As Below:
Key Elements Included In The Study: Global Olive Oil Market
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