The global olive oil market was valued at USD 7.83 billion in 2017, growing at a CAGR of 6.3% from 2017 to 2025. The growth is primarily driven by its positioning as a healthier alternative to fatty oils and the associated health benefits. Olive oil contains antioxidants, has anti-inflammatory properties, is protective against heart diseases, and is not associated with obesity.
The demand for low-fat content oils has increased in the light of increasing obesity rate. For instance, in the U.S., according to reports, the consumption has grown by 250% in the past 25 years ending 2015. According to Coldiretti, the Italian farmers’ group, global consumption has grown by 73% during the same time period. Also, the increasing demand from personal care products where it is used as an important ingredient in hair care and skin care products has added to the growth.
Segmentation by Product
• Processed olive oil
• Virgin olive oil
Virgin olive oil was the largest product segment commanding more than 70.0% revenue share in 2017. It is also the fastest growing segment at a CAGR of around 5.0% from 2017 to 2025. The demand from health-conscious consumers as it contains natural vitamins and minerals and is effective against cardiovascular diseases, osteoporosis (bones), high blood pressure, diabetes, and Alzheimer’s is expected to increase in the coming years.
Processed olive oil is the refined version that has been treated for organoleptic defects. Consumer preference towards processed form is relatively low as it is usually tasteless, odorless, and colorless. Its consumption is expected to remain low as compared to virgin form in the coming years. In 2017, the market was valued at 1.89 billion.
Segmentation by Application
• Food & beverage
• Personal care
Food & beverage segment dominated the market with more than 85.0% share in 2017. Demand from the sector is expected to grow at a CAGR of 4.5% from 2017 to 2025. Consumers’ inclination towards maintaining a healthy lifestyle has increased the usage of olive oil in various food products as an effective alternative.
Olive oil is also used for the dressing of salads to maintain the antioxidants and phenols level of the vegetable and legume. The product has become an important part of the diet of diabetic patients as it is the main source of good fats for consumers suffering from diabetes.
Segmentation by Region
• North America
• Asia Pacific
• Central & South America
• Middle East & Africa
Europe held the largest market share in 2017, accounting for well over 60.0% of the market. The food service sector in Europe is the largest application sector for the product. European nations follow the Mediterranean diet, which is characterized by the high use of olive oil. Spain, Greece, and Italy are the major producers and exporters in the region.
Asia Pacific is expected to be the fastest growing region with a CAGR of more than 4.0% from 2017 to 2025. The consumption pattern is changing in the region. Consumers have become health conscious and preferring healthy foods with low-fat content. The per capita spending on healthy food in countries such as China and India has increased significantly. China has become one of the prime export destinations for producers.
Some of the key players in the global olive oil market include DEOLEO, GRUPPO SALOV, BORGES INTERNATIONAL GROUP, Ybarra, SOVENA, Del Monte Food, Inc, and Cargill, Incorporated. Over the past few years, the companies have increased their production capacity to meet the growing demand. Companies are expected to focus on new product launches and on consolidating their presence in the coming years. In April 2018, DEOLEO changed the packaging of its Bertolli brand to position it as a brand with a rich heritage and roots.
In the coming years, M&A activities are expected to be more prevalent with companies looking to strengthen their presence. In 2017, Landec Corporation, a diversified health and wellness solutions company, announced the acquisition of O Olive Oil, Inc., a producer of California specialty olive oils and wine vinegar. The acquisition marks Landec’s expansion to the natural food products market. On similar lines, in the second half of 2018, Dcoop S.Coop.And. acquired a 5.0% stake in Maçarico SA, a Portuguese company, to strengthen its position in the market.
Research Support Specialist, USA