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The global olive oil market size was USD 13.03 billion in 2019 and it is projected to reach USD 16.64 billion by 2027, exhibiting a CAGR of 3.2% during the forecast period (2020-2027).
The market is experiencing robust growth primarily due to the increasing demand for olive oil across the foodservice and retail channels. This oil is an integral part of a Mediterranean diet owing to its several health benefits. The growing interest in trying out exotic cuisines has mainly contributed to the increased popularity of the oil across various regions in the world. In recent years, this oil has been extensively utilized as an ingredient in the manufacturing of dietary supplements and pharmaceuticals. The growing awareness regarding the health benefits of the oil is attributed to its omega-3 fatty acid content that is driving its demand in the forthcoming years.
Disruption in Olive Oil Supply Chain during COVID-19 Pandemic to Impede Growth
The demand and sale of olive fruit oil have experienced a sudden slump because of the outbreak of the COVID-19 pandemic. Nationwide lockdown in various countries has resulted in the disruption of trade activities, which has slowed the growth of this industry. According to the U.S. Census Bureau, olive fruit oil imports by the U.S. decreased by 13% in 2020 as compared to those in 2019. However, the increased concerns related to immunity and overall health have re-established the demand for healthy oils, which is expected to continue during & after the pandemic.
The growing interest in home cooking due to the rising concerns related to food safety has increased the oil sale in Mediterranean countries. For instance, sales in Italy have increased by 22% in 2020 as compared to the previous year. The re-establishment of oil trade networks is expected to fuel the market growth during the forecast period.
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Incorporation of Nutrient-rich Oils in Diet to Reduce the Risk of Certain Health Conditions
The trend of maintaining overall health and wellness by shifting to healthier oil choices mainly drives the growth of the market. In recent years, consumer inclination towards including healthy vegetable oils in their regular diets has surged owing to the increasing occurrence of lifestyle-related health conditions. The modern-day stressful and sedentary lifestyle of consumers has resulted in an increased prevalence of obesity and cardiovascular conditions. The growing knowledge of the strong association of consumption of fats and oils with hypertension and coronary heart diseases primarily fuels the demand for nutrient-rich oils.
Consumers nowadays pay more attention to the label claims while purchasing their oil products. There is an increasing demand for vegetable oils with specific health claims such as high omega-3, MUFA (monounsaturated fatty acids), and vitamin-E due to the rising awareness of their positive health attributes. Olive oil is high in MUFA and antioxidant content which supports the normal functioning of the heart. The growing demand for such nutritious oils heavily contributes to the growth of the market.
Rising Awareness of Health Benefits of Olive Oil to Drive Market Growth
The recent recognition of the positive health effects of MUFAs has increased the demand for fats & oils containing MUFAs. Various clinical studies carried out recently suggest that the consumption of omega-3 primarily supports cardiovascular health and various other functions in the body. The increasing understanding of the importance of essential fatty acids fuels 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 providing beneficial fatty acids, antioxidants, and vitamins.
The other factor influencing the market growth is the growing popularity of ethnic Mediterranean cuisines across the globe. A variety of cuisines such as Greek, Italian, and Spanish utilize olive fruit oil as an integral part of food preparation. The increasing travel, tourism, and growing interest in trying various exotic preparations support the growth of the market across the world.
Growing Popularity of Raw, Cold-pressed & Artisanal Edible Oils to Propel Market Growth
One of the major factors supporting the growth of the market is the growing interest in natural, raw, and cold-pressed oils attributed to their safer and healthier counterparts. Vegetable oils sold under such claims are perceived to be healthier as they are free from any chemicals as well as retain their complete nutritive value. Consumers are more inclined towards buying virgin & extra-virgin olive oil owing to their minimal processing and stable fatty acid profile. The clean flavor and unaltered organoleptic properties of cold-pressed, virgin oils further fuel their demand in the market. Furthermore, the rising concerns related to environmental sustainability are projected to drive the demand for natural, minimally processed olive fruit oils in the forthcoming years.
Availability of Low-cost Replacement Oils to Restrain Market Growth
The high cost of olive fruit oil has led consumers to seek low-cost replacement oils with similar health attributes as that of olive fruit oil. Sunflower oil, canola oil, and coconut oil are gaining popularity among consumers attributed to their high content of essential fatty acids. Manufacturers are investing in advanced technologies that retain essential nutrients in a better way during the processing of these oils. This has significantly contributed to the increased demand for sunflower oil and canola oil as a replacement oil. The low cost required for cultivation, storage and processing of sunflower seeds as compared to olives further restrains the growth of the market.
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Virgin Olive Oils Hold the Largest Market Share Owing to its Higher Nutrient Content
Based on the type, olive is segmented by virgin, pure/refined olive, and other olive oils such as olive pomace oil.
Virgin olive oils are expected to witness strong sales performance owing to their rising popularity among consumers attributed to the growing awareness regarding their health benefits. Omega-3 and oleic acid present in the virgin oil help to prevent lifestyle-related disorders such as obesity and cardiovascular diseases. Emerging processing techniques and technological advancements that enable manufacturers to efficiently process virgin oils that retain the highest amount of nutrients further drive market growth.
The refined/pure segment is projected to exhibit substantial growth due to its rising utilization in pharmaceuticals, dietary supplements, and the cosmetics industry. The increasing demand for nutrient-enriched animal feed has significantly amplified the requirement of olive fruit oil to manufacture high-value animal feed.
Growing Use of Olive Oil in Households & Foodservice Sector Propels Market Growth
The increasing olive fruit oil demand for cooking in households primarily fuels the growth of the market. The growing awareness regarding the role of olive fruit oil in maintaining good health has remarkably increased the demand for various types of olive fruit oil in retail channels. The emerging trend of consuming minimally processed natural oils has driven the demand for cold-pressed virgin olive oils attributed to its higher nutrient content.
The rising demand for olive fruit oil across the foodservice sector is the other major factor fuelling the growth of the market. The growing consumer interest in dining out and trying exotic cuisines such as Italian and Spanish is anticipated to boost the market growth in the forthcoming years.
Olive fruit oil is extensively utilized for the manufacturing of various food products, primarily healthy snacks. The growing popularity of healthy snacks among consumers has necessitated manufacturers to incorporate nutrient-rich ingredients such as olive fruit oil to improve the value of the final product. Olive fruit oil has also been widely utilized for animal feed and pharmaceuticals to enrich them with the required nutrients. The increasing popularity of omega-3 enriched cosmetics to improve skin and hair health is projected to drive the olive oil market growth in the upcoming years.
Europe Olive Oil Market Size, 2019 (USD Billion)
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Europe is the Leading Region while Asia Pacific is the Fastest Growing
The market in Europe was USD 6.67 billion in 2019. The robust growth of the olive fruit oil market in Europe is mainly attributed to the highest production of olive fruit oil in the region. Italy and Spain are the primary countries producing and supplying olive fruit oil to various countries in other regions. Olive fruit oil is an integral ingredient in Mediterranean cuisine. The rising awareness regarding the health benefits of omega-3 and oleic acid present in olive fruit oil has significantly increased its demand in retail as well as the foodservice sector in the region. The growing popularity of functional foods has increased the demand for olive fruit oil across the food manufacturing industry in Europe.
Asia Pacific is the fastest-growing region with immense potential for the olive fruit oil industry and is expected to showcase the fastest growth rate as compared to the global average. The growth of the market is attributed to the rising awareness of their health benefits and increasing discretionary incomes that enable consumers to spend on healthcare products that promote wellbeing. The rising trend of dining out and trying out Mediterranean cuisine is expected to further drive the market growth. The increasing popularity of functional food and beverages in the region is contributing to the growth of omega-3 fatty acid-fortified foods.
The market in North America is mainly driven by the growing interest in healthy oils to prevent lifestyle-related health conditions arising due to the hectic lifestyles of consumers. The increasing studies to prove the beneficial effects of olive fruit oil consumption on health have significantly increased the advancements in the region. The growing popularity of dietary supplements to maintain overall health and wellness has increased the demand for olive fruit oil for nutraceuticals and pharmaceutical sectors in the region.
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South America is expected to witness a substantial growth due to the rising awareness of the health benefits of olive fruit oil. Virgin olive oils are becoming popular across retail sectors as consumers' interest in cooking with healthy oils has increased. The increasing popularity of cosmetics containing omega-3 that improves skin health is expected to drive the demand for other olive fruit oil varieties in the region.
The Middle East and Africa is still at the nascent stage holding tremendous opportunities for manufacturers to promote olive fruit oil in the forthcoming years.
Deoleo S.A. is focused on Geographical Expansion to Strengthen its Presence in the Global Market
Deoleo S.A., the leading olive oil company, is currently focused on investing in the expansion of its olive fruit oil business to strengthen the position in the global market. For instance, in November 2018, the company completed a capital increase of 25 million Euros, which will be used to support international growth and improve the company’s major brands. Overall, the market exhibits a moderately consolidated structure, dominated by a few multinational companies.
Other key players such as Borges S.A., Salov SpA, and Sovena Group are focusing on strategic mergers, acquisitions, and partnerships to gain further a competitive edge that comes from such synergies. The arrival of small and niche players in the market is contributing to intensifying competition within the market, which has a positive aspect for the growth of the market.
An Infographic Representation of Olive Oil Market
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The olive oil market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading end-use distribution channels of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Billion)
By Type, End-user, and Geography
Fortune Business Insights says that the value of the market was USD 13.03 billion in 2019 and is projected to reach USD 16.64 billion by 2027.
In 2019, the European market value stood at USD 6.67 billion.
Growing at a CAGR of 3.2%, the market will exhibit steady growth in the forecast period (2020-2027).
The virgin oils segment is expected to be the leading segment based on the type in the market during the forecast period.
The growing awareness of the health benefits of this oil is the key driving factor for the market.
Deoleo S.A., Borges S.A., and Salov Group are the top players in the market.
Europe is expected to hold the highest market share in 2019.
The rising awareness of the health benefits of monounsaturated fatty acids and the growing popularity of exotic cuisines are major factors driving the adoption of olive oil.
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