Global Olive Oil Market Size, Share and Industry Analysis Report By Type (Refined, Virgin, Extra Virgin, Others), By Application(Food and Beverage, Personal Care and Cosmetics, Pharmaceuticals, Others), By Packaging(Bottles, Pouches, Cans), By Distribution Channel(Supermarkets and Hypermarkets, Convenience Stores, Online, Others) By Region, and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
- Published date: Oct 2024
- Report ID: 130419
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Report Overview
Olive Oil Market size is expected to be worth around USD 26 billion by 2033, from USD 18 billion in 2024, growing at a CAGR of 4.3% during the forecast period from 2023 to 2033. In 2023, APAC held a 45% market share, dominating the olive oil industry. Furthermore, it is anticipated that the global olive oil market would expand dramatically, with a projected value of USD 18.1 billion by 2033.
Olives are a traditional tree crop in the Mediterranean region, and olive oil is a liquid fat made from them. Pressing whole olives and removing the oil is how the oil is made. It’s frequently used in cuisine as a condiment, salad dressing, or for frying. In addition to its usage in traditional oil lamps, olive oil finds application in the manufacturing of soaps, medicines, and cosmetics.
The demand and sales of olive oil was caused by the COVID-19 epidemic. A number of nations experienced nationwide lockdowns that disrupted trade, slowing the industry’s growth. In 2020, the United States imported 13% less olive oil than it did in 2019, according to the U.S. Census Bureau. Healthy oils are once again in demand, though, as worries about immunity and general health have grown. This trend is anticipated to last throughout the pandemic and beyond.
Government and private sector initiatives play a crucial role in supporting the olive oil market. For instance, the Turkish government’s efforts have significantly increased olive oil production, reflecting broader regional growth strategies.
The trend of prioritizing overall health and well-being is driving the market’s growth, as it has resulted in a shift towards better oil alternatives. As lifestyle-related health concerns become more common, consumers are more likely to include healthful vegetable oils in their normal diets.
Starbucks unveiled three new coffee tastes in February 2023 that prominently featured olive oil. These coffee tastes are currently only offered at Italian Starbucks locations. In the following months, these coffee lines will, nevertheless, be made available internationally.
Key Takeaways
- Olive Oil Market size is expected to be worth around USD 26 billion by 2033, from USD 18 billion in 2024, growing at a CAGR of 4.3%.
- Extra Virgin olive oil held a dominant market position, capturing more than a 48.2% share.
- Food & Beverage sector held a dominant market position in the olive oil industry, capturing more than a 67.1% share.
- Bottles held a dominant market position in the olive oil packaging sector, capturing more than a 52.3% share.
- Supermarkets & Hypermarkets held a dominant market position in the olive oil distribution sector, capturing more than a 57.4% share.
- Asia Pacific is emerging as a dynamic growth region for the olive oil market, reflecting a compound annual growth rate (CAGR) of 45% and generating revenue of USD 18.1 billion.
By Type
In 2023, The Extra Virgin olive oil dominated the Olive Oil market with a 48.2% share.
In 2023, Extra Virgin olive oil held a dominant market position, capturing more than a 48.2% share. This segment benefits from high consumer trust due to its quality and natural extraction process, which preserves maximum flavor and nutrients. Extra Virgin olive oil is often used in dressings, dips, and as a healthy finishing oil for dishes, which adds to its popularity.
The Virgin olive oil segment also holds a significant place in the market, appreciated for having a slightly higher acidity than Extra Virgin but maintaining a good taste profile. It’s commonly used in cooking and baking where high heat is not required, allowing its flavor to enhance food without overpowering it.
Refined olive oil, known for its lighter flavor and higher smoke point, is typically used in cooking and frying. Although it lacks some of the distinct flavors found in virgin oils, its versatility makes it a staple in many kitchens.
By Application
In 2023, The Food & Beverage dominated the Olive Oil market with a 67.1% share.
In 2023, the Food & Beverage sector held a dominant market position in the olive oil industry, capturing more than a 67.1% share. This segment benefits significantly from the widespread adoption of olive oil in cooking, baking, and as a dressing, thanks to its recognized health benefits and rich flavor. Olive oil is integral to Mediterranean cuisine and is increasingly popular globally in diets focused on heart health and longevity.
The Personal Care and Cosmetics segment also makes substantial use of olive oil, utilizing its hydrating properties in products like creams, shampoos, and soaps. Olive oil’s natural antioxidants and vitamins make it a valuable ingredient for skin and hair care products, promoting moisture retention and skin protection.
In Pharmaceuticals, olive oil is used as an excipient to help with the delivery and effectiveness of active ingredients in medications. Its ability to act as a solvent for lipophilic substances enhances its utility in topical ointments and oral medicines, contributing to a steady demand within this sector.
By Packaging
In 2023, The Bottles dominated the Olive Oil market with a 52.3% share.
In 2023, Bottles held a dominant market position in the olive oil packaging sector, capturing more than a 52.3% share. This format is favored for its convenience and ability to preserve the quality of olive oil against light and air exposure, which can degrade the oil. Bottles, typically made of dark glass, are preferred for home and restaurant use due to their practicality in dispensing and storing oil.
Pouches are gaining traction in the olive oil market as well, thanks to their cost-effectiveness and reduced environmental impact. They use less material than traditional packaging and are lighter, which decreases transportation costs. Despite these advantages, pouches captured a smaller market share, reflecting gradual consumer acceptance as they balance functionality with sustainability.
Cans are another significant packaging option, especially valued for their durability and long shelf life. Olive oil stored in cans is well-protected from light and air, making it a suitable choice for bulk and long-term storage. This packaging type is commonly used in commercial settings or for high-quality oils that require stringent preservation before use.
By Distribution Channel
In 2023, The Supermarkets & Hypermarkets dominated the Olive Oil market with a 57.4% share.
In 2023, Supermarkets & Hypermarkets held a dominant market position in the olive oil distribution sector, capturing more than a 57.4% share. These outlets are favored for their wide range of olive oil brands and types, allowing consumers to compare prices and qualities before making a purchase. The physical presence of olive oil on shelves also aids in purchasing decisions through label reading and brand recognition, essential factors for many buyers.
Convenience Stores also play a critical role in the distribution of olive oil, offering quick access for consumers looking to make speedy purchases. While they typically offer a smaller selection compared to supermarkets, the convenience they provide ensures they maintain a significant share of the market.
Online sales of olive oil have seen significant growth, driven by the convenience of home delivery and often broader selections than found in physical stores. As e-commerce continues to expand, this channel offers potential for further growth by reaching a larger audience, including those who prefer shopping online to access reviews and potentially better deals.
Key Market Segments
By Type
- Refined
- Virgin
- Extra Virgin
- Others
By Application
- Food & Beverage
- Personal Care and Cosmetics
- Pharmaceuticals
- Others
By Packaging
- Bottles
- Pouches
- Cans
By Distribution Channel
- Supermarkets & Hypermarkets
- Convenience Stores
- Online
- Others
Driving Factors
Government Support and Subsidies
In Spain, the Ministry of Agriculture allocated a substantial budget of €27.5 million specifically to assist traditional olive growers. This financial support is part of a broader strategy aimed at sustaining and boosting the country’s status as the world’s premier olive oil producer.
Traditional olive groves, which cover nearly 1.9 million hectares of agricultural land, represent more than 70% of the country’s olive cultivation area. The funds are channeled through various programs that support agricultural practices, enhance product quality, and promote sustainable cultivation techniques, ensuring that Spain maintains its leading position in global olive oil production.
Similarly, Italy is actively deploying measures to support its olive oil sector through financial aid and policy initiatives. The Italian government has directed funds from the National Recovery and Resilience Plan (NRRP) and the new Common Agricultural Policy (CAP) towards the olive oil industry.
These funds are intended to increase production volumes and enhance the quality of the olive oil produced. For instance, the Italian olive sector is set to receive funding of approximately €3,000 per hectare, targeting about one million hectares of olive-growing land. This substantial investment underscores the government’s commitment to bolstering the olive oil industry, improving yield outputs, and enhancing the overall quality of the olive oil produced on Italian soil.
These government initiatives are crucial as they not only provide financial relief but also offer technical and infrastructural support to olive growers. This support ranges from subsidies for modern farming equipment to grants for research into disease resistance and yield improvement. Moreover, such policies are vital in regions where olive oil is not just an agricultural product but a significant element of the local culture, cuisine, and economy.
The impact of these government measures is significant in stabilizing the olive oil market. They help in mitigating the risks associated with agricultural dependency on weather conditions and other environmental factors. By ensuring continuous production and quality improvement, these subsidies help in maintaining the supply chain’s integrity, thus preventing market fluctuations that could arise from supply shortages.
Restraining Factors
Extreme Weather Conditions and Drought
A significant restraining factor impacting the olive oil market is the prevalence of extreme weather conditions, particularly droughts, which have a direct effect on olive crop yields. These adverse weather conditions have led to considerable fluctuations in olive oil production, affecting both supply and market prices.
In Spain, which is one of the leading producers of olive oil globally, the year 2022 was marked by significantly low olive harvests due to extreme drought conditions across major producing regions. This scarcity of olives led to a surge in olive oil prices, making it less affordable and potentially reducing consumer demand. This situation exemplifies how sensitive olive oil production is to climatic variations, which can swiftly alter the output levels from one season to the next.
Moreover, the situation in Italy mirrors these challenges, where early estimates for the 2023/24 marketing year indicated a sharp decline in production. The anticipated output of 290,000 metric tonnes was notably lower than the average production levels of the previous years, attributed mainly to persistent drought conditions. Greece faced a similar fate, with projections significantly reduced to around 120,000 metric tonnes for the same period, a steep decline from prior years.
These issues are exacerbated by the olive tree’s particular sensitivity to changes in weather patterns. Olive trees require specific climatic conditions to thrive, and disruptions such as droughts, floods, or unseasonal temperatures can lead to significant drops in yield. As climate change continues to influence global weather patterns, the frequency and severity of these extreme conditions are likely to increase, posing ongoing risks to olive production stability.
The direct impact of these environmental challenges is not only on the volume of olive oil available in the market but also on the economic stability of regions dependent on olive oil production for income. Furthermore, the increased costs associated with managing these agricultural risks—such as investments in irrigation systems or the development of more resilient olive varieties—add to the overall strain on the olive oil market.
Growth Opportunity
Expansion into Emerging Markets
One of the most significant growth opportunities for the olive oil market lies in its expansion into emerging markets, particularly in Asia-Pacific and South America. This region exhibits a rapidly growing consumer base with increasing disposable incomes and a rising awareness of health benefits associated with olive oil consumption.
As the global middle class expands, particularly in countries like China and India, there is a notable shift towards healthier dietary choices. Olive oil is increasingly being recognized for its health benefits, such as reducing heart disease risk and improving cholesterol levels, which aligns with the growing health consciousness among these populations. This awareness is not only boosting the demand for olive oil in household cooking but also in food services and manufacturing sectors that are keen on providing healthier food options.
Moreover, the popularity of Western diets and the Mediterranean cuisine, known for its extensive use of olive oil, is growing in these regions. As more consumers opt for diets that promote wellness and longevity, the demand for olive oil as a healthier alternative to other cooking oils is expected to rise significantly. The adoption of Mediterranean dietary patterns in these regions presents a lucrative opportunity for olive oil producers to expand their market presence.
Furthermore, the online retail sector is playing a pivotal role in this growth by making olive oil more accessible to a broader audience. The convenience of online shopping, combined with the ability to explore a wide variety of brands and products, is attracting more consumers to choose olive oil over other fats and oils. Online platforms offer detailed product information and reviews, which help consumers make informed choices based on health benefits and quality, thereby increasing consumer trust and loyalty towards olive oil brands.
The continued urbanization and the rise of e-commerce are other critical factors contributing to the expansion of the olive oil market in these emerging regions. As urban consumers exhibit a preference for shopping online due to their busy lifestyles, the availability of olive oil on e-commerce platforms is expected to boost its sales, making it a staple in more households.
Latest Trends
The Rise of Organic and Health-centric Products
One of the most prominent trends in the olive oil market is the growing consumer preference for organic and health-centric olive oils. This shift is driven by an increasing awareness of the health benefits associated with olive oil consumption, particularly the positive effects on heart health and cholesterol levels. This trend is not just limited to food consumption but extends into the pharmaceutical and cosmetic sectors, where olive oil’s natural properties are leveraged for various health and beauty products.
Consumers are becoming more health-conscious, seeking products that not only offer superior taste and culinary flexibility but also contribute positively to their well-being. This has led to a significant rise in the demand for virgin and extra virgin olive oils, known for their rich flavors and higher concentrations of beneficial antioxidants and monounsaturated fats. These products are particularly popular in regions with a strong tradition of olive oil consumption, such as Europe, but are gaining traction globally due to their reputed health benefits.
The shift towards organic olive oil is also fueled by concerns over pesticides and chemicals used in conventional agriculture. Organic olive oils are produced from olives grown without synthetic fertilizers or pesticides, making them a preferred choice for consumers focused on natural and sustainable consumption. This demand is supported by a robust growth in the organic food sector globally, with more manufacturers entering the organic olive oil market to cater to this niche but rapidly growing segment.
Moreover, the distribution of olive oil is evolving, with online sales channels experiencing significant growth. The convenience of online shopping, combined with the ability to explore a vast array of brands and products, is appealing to the modern consumer. This is particularly true for specialty products like organic and premium-grade olive oils, which are often harder to find in traditional retail settings. Online platforms offer a broader selection and more competitive pricing, which are key factors driving consumer choice in this market.
Regional Analysis
Europe remains the epicenter of olive oil production, with countries like Spain, Italy, and Greece leading the charge. The region’s deep-rooted olive cultivation traditions and favorable Mediterranean climate support a robust production infrastructure. Europe’s market dominance is reinforced by high consumption levels and a strong export presence, maintaining a significant share in the global market.
North America, particularly the United States, exhibits a growing demand for olive oil, driven by increasing health consciousness among consumers and the rising popularity of Mediterranean diets. The market is supported by both imports from traditional producing countries and rising domestic production, particularly in California. Consumer preference for premium, extra-virgin, and organic olive oils is fostering market growth.
Asia Pacific is emerging as a dynamic growth region for the olive oil market, reflecting a compound annual growth rate (CAGR) of 45% and generating revenue of USD 18.1 billion. This rapid expansion is fueled by rising disposable incomes and growing awareness of olive oil’s health benefits. Countries like China and India are witnessing increased consumption, supported by urbanization and changing dietary preferences.
Latin America and the Middle East & Africa are seeing gradual growth, with an increasing interest in olive oil due to its health benefits. The market in these regions benefits from growing urban populations and the expanding presence of international food retailers that facilitate access to olive oil products.
Key Regions and Countries
North America
- The US
- Canada
- Rest of North America
Europe
- Germany
- France
- The UK
- Spain
- Netherlands
- Russia
- Italy
- Rest of Europe
Asia-Pacific
- China
- Japan
- Singapore
- Thailand
- South Korea
- Vietnam
- India
- New Zealand
- Rest of Asia Pacific
Latin America
- Mexico
- Brazil
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- South Africa
- UAE
- Rest of the Middle East & Africa
Key Players Analysis
The olive oil market boasts a diverse array of key players, each contributing uniquely to the industry’s global landscape. Almazaras de la Subbetica, renowned for its quality Spanish olive oils, stands out for its award-winning products, often celebrated in international olive oil competitions. Similarly, Azienda Agricola Leone Sabino and Paolo Bonomelli Boutique Olive Farm underscore the market’s artisanal segment, focusing on high-quality, single-origin oils from Italy, which appeal to niche markets looking for premium products.
Large conglomerates like Borges INTERNATIONAL GROUP, S.L.U., Cargill, Incorporated, and Del Monte Foods Private Limited play crucial roles in both the cultivation and distribution phases of the industry. These companies benefit from extensive distribution networks and a broad product range, encompassing both mass-market and premium oils. Deoleo, S.A., another significant player, is pivotal in shaping global market trends due to its expansive reach and brand recognition.
On the innovative front, companies like California Olive Ranch, Inc. and Colavita USA, LLC are known for blending traditional craftsmanship with modern agricultural practices, helping to push the boundaries of quality and sustainability in olive oil production. POMPEIAN and GRUPPO SALOV are also key figures, widely recognized for their contributions to both the growth and the sustainability of the olive oil market, emphasizing quality and consumer trust.
Market Key Players
- Almazaras de la Subbetica
- Azienda Agricola Leone Sabino
- Borges INTERNATIONAL GROUP, S.L.U.
- Broges SA
- California Olive Ranch, Inc.
- Cargill, Incorporated
- Colavita USA, LLC
- Conagra Brands
- Del Monte Foods Private Limited
- Deoleo, S.A.
- Fieldfresh Foods Private Limited
- Frantoio Romano
- Gallo Worldwide, LDA
- GRUPPO SALOV
- Hacienda El Palo SL
- Hispasur Aceites S.L.
- Knolive Oils
- LIÁ Olive Oil
- Modi Naturals Ltd.
- Monini
- Nicola Pantaleo S.p.A.
- Oro del desierto
- Paolo Bonomelli Boutique Olive Farm
- POMPEIAN
- SOVENA
- Sucesores de Hermanos López SA
Recent Development
In 2023, Almazaras de la Subbética continued to garner international acclaim, securing multiple awards at prestigious competitions such as the NYIOOC World Olive Oil Competition.
In 2024, Azienda Agricola Leone Sabino continues to expand its market reach, strengthening its presence not only in local Italian markets but also across Europe and in other regions where there is a growing appreciation for fine olive oils.
Report Scope
Report Features Description Market Value (2024) USD 18 Billion Forecast Revenue (2033) USD 26 Billion CAGR (2024-2032) 4.3% Base Year for Estimation 2023 Historic Period 2020-2023 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Type(Refined, Virgin, Extra Virgin, Others), By Application(Food and Beverage, Personal Care and Cosmetics, Pharmaceuticals, Others), By Packaging(Bottles, Pouches, Cans), By Distribution Channel(Supermarkets and Hypermarkets, Convenience Stores, Online, Others) Regional Analysis North America – The US, Canada, Rest of North America, Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, Rest of Europe, Asia-Pacific – China, Japan, South Korea, India, New Zealand, Singapore, Thailand, Vietnam, Rest of Asia Pacific, Latin America – Brazil, Mexico, Rest of Latin America, Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa Competitive Landscape Almazaras de la Subbetica, Azienda Agricola Leone Sabino, Borges INTERNATIONAL GROUP, S.L.U., Broges SA, California Olive Ranch, Inc., Cargill, Incorporated, Colavita USA, LLC, Conagra Brands, Del Monte Foods Private Limited, Deoleo, S.A., Fieldfresh Foods Private Limited, Frantoio Romano, Gallo Worldwide, LDA, GRUPPO SALOV, Hacienda El Palo SL, Hispasur Aceites S.L., Knolive Oils, LIÁ Olive Oil, Modi Naturals Ltd., Monini, Nicola Pantaleo S.p.A., Oro del desierto, Paolo Bonomelli Boutique Olive Farm, POMPEIAN, SOVENA, Sucesores de Hermanos López SA Customization Scope Customization for segments at the regional/country level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) - Almazaras de la Subbetica
- Azienda Agricola Leone Sabino
- Borges INTERNATIONAL GROUP, S.L.U.
- Broges SA
- California Olive Ranch, Inc.
- Cargill, Incorporated
- Colavita USA, LLC
- Conagra Brands
- Del Monte Foods Private Limited
- Deoleo, S.A.
- Fieldfresh Foods Private Limited
- Frantoio Romano
- Gallo Worldwide, LDA
- GRUPPO SALOV
- Hacienda El Palo SL
- Hispasur Aceites S.L.
- Knolive Oils
- LIÁ Olive Oil
- Modi Naturals Ltd.
- Monini
- Nicola Pantaleo S.p.A.
- Oro del desierto
- Paolo Bonomelli Boutique Olive Farm
- POMPEIAN
- SOVENA
- Sucesores de Hermanos López SA
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