Olive Market Size, Share, Growth | Global Industry Report

Written by Neha Patil  »  Updated on: July 08th, 2024

Olive Market Size, Share, Growth | Global Industry Report

The global olive market was valued at USD 13.6 million in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.0% during the forecast period. This growth is primarily attributed to the increasing demand for olive fruit oil across various sectors, including food service and retail, as well as the rising popularity of Mediterranean cuisine worldwide.

Key Drivers of Market Growth

Growing Demand for Olive Fruit Oil

The increasing interest in exotic cuisines has significantly contributed to the popularity of Olea europaea fruit oil across several regions. Olive fruit oil, a staple in Mediterranean diets, is recognized for its numerous health benefits, including its omega-3 fatty acid content. This awareness is driving its demand in the dietary supplements and pharmaceuticals industries, where it is extensively used.

Health Benefits Driving Consumer Demand

The recognition of the health benefits of monounsaturated fatty acids (MUFAs) found in olive oil has further fueled its demand. Clinical studies suggest that omega-3 fatty acids, prevalent in olive oil, are beneficial for cardiovascular health and other bodily functions. This understanding has led to increased consumer appreciation and demand for olive oil, contributing to its growth in the market.

Popularity of Mediterranean Cuisine

The global popularity of Mediterranean cuisines, such as Italian, Greek, and Spanish, has also driven the demand for olive oil. Olive oil is an integral part of these cuisines, used extensively in food preparation. Additionally, the growing trend of tourism and interest in exotic foods has boosted the market performance of olive oil.

Impact of COVID-19 on the Olive Market

Market Challenges During the Pandemic

The COVID-19 pandemic had a notable impact on the olive oil market, causing a temporary decline in demand and sales. Nationwide lockdowns disrupted trade activities, slowing the industry's growth. For instance, olive oil imports in the U.S. decreased by 13% in 2020 compared to 2019.

Recovery and Future Outlook

Despite these challenges, the pandemic also heightened consumer awareness of health and immunity, leading to a renewed interest in healthy oils like olive oil. Home cooking surged due to food safety concerns, boosting olive oil sales in Mediterranean countries. In emerging economies, such as India, olive oil gained popularity in households for creating gourmet experiences at home. Brands like Del Monte and Oleev saw a 30% increase in sales during 2020, while Leonardo experienced a 15-20% growth in the last two quarters of the year.

Market Drivers and Opportunities

Rise in Artisanal and Minimally Processed Oils

The growing consumer interest in raw, natural, and cold-pressed oils has propelled the market growth for olive oil. These minimally processed oils are perceived as safer and healthier, retaining their nutritional value. The demand for virgin and extra-virgin olive oils has increased due to their unaltered organoleptic properties and health benefits.

Increasing Health Awareness

The demand for olive oil is also driven by the growing awareness of its health benefits. Olive oil, rich in antioxidants, beneficial fatty acids, and vitamins, has gained popularity as a healthy oil. This trend is expected to continue, with consumers seeking out oils that support cardiovascular health and overall wellness.

Market Restraints

Competition from Low-Cost Alternatives

One of the significant challenges facing the olive oil market is the presence of low-cost edible oil alternatives, such as sunflower, coconut, and canola oils. These oils offer similar nutritional benefits and are gaining traction among cost-conscious consumers. The lower investment required for producing these oils further restrains the growth of the olive oil market.

Market Segmentation and Regional Insights

Dried Olive and Organic Products

The demand for dried olive in households and the food service sector is driving market growth. The use of dried olive in cooking and healthy snacks is increasing due to its health benefits. Additionally, the trend towards organic products is boosting the demand for organic olives in the production of pickles.

Regional Dominance of Europe

Europe remains the leading region in the olive market, being the largest consumer, producer, and exporter of olives. Countries like Italy, Spain, Greece, and France account for over 80% of the consumption in the region. The increasing popularity of olive oil in North America, driven by health consciousness and dietary supplements, also contributes to the market's growth.

Competitive Landscape

The global olive market is highly competitive, with key players such as Pietro Coricelli, Orfeu, 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 actively participating in market expansion and product innovation.

In June 2021, Pietro Coricelli joined IBM Food Trust to use blockchain technology for tracing its extra-virgin olive oil, highlighting the industry's move towards transparency and quality assurance. Additionally, Orfeu launched a new line of olive oils in Brazil to meet the growing demand and strengthen its market position globally.

Know More:https://www.fairfieldmarketresearch.com/report/olive-market

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