Olive Oil Market

Olive Oil Market Outlook (2023-2033)

The global olive oil market is estimated to progress at a CAGR of 5.2% from 2023 to 2033. The market stands at a valuation of US$ 12 billion in 2023 and is expected to reach US$ 20 billion by 2033-end. Demand for virgin olive oil is projected to rise rapidly over the coming years due to its effectiveness in preventing cardiovascular illnesses.

Oleic, palmitic, and linoleic acids are among the fatty acids found in olive oil, which is an oil made from olives. It is a cooking oil with numerous health advantages. Olive oils come in a great variety on the market because of their popularity. Its nutritional composition also includes a lot of antioxidants, vitamins D and K, and monounsaturated fats. Olive oil is not just a cooking oil for food; it also has many other uses.

The market is expanding primarily due to the trend of preserving overall health and fitness by switching to healthier oil options. Due to the rise in lifestyle-related illnesses, consumers' propensity to include healthful vegetable oil in their normal meals has increased recently. Obesity and cardiovascular diseases are now more common due to the stressful and sedentary lifestyles of today's consumers. The demand for nutrient-rich oil is primarily driven by the rising understanding of the strong correlation between dietary fat and oil consumption.

Growing consumer awareness of olive oil's health advantages will spur market expansion. Recent clinical research indicates that omega-3 fatty acid ingestion largely promotes cardiovascular health and several other bodily processes. Because of its high omega-3 concentration and growing awareness of the value of essential fatty acids, olive fruit oil is in higher demand. The growing acceptance of ethnic Mediterranean cuisines around the world is another element driving market expansion.

The global olive oil market is expanding because of rising tourism, curiosity in sampling various unique preparations, and the rising demand for cold-pressed oil. The market is also expected to expand as a result of the rising acceptance of cold-pressed olive oil among the younger, diet-conscious population, as well as the growing use of olive oil for managing weight loss and those suffering from lifestyle diseases.

Olive oil is a good and nutritious alternative to common edible oils because it is gluten-free. Olive oil aids in the prevention of type 2 diabetes, stomach cancer, and stomach ulcers, as well as the treatment of rheumatoid arthritis and osteoporosis. The demand for olive oil among consumers is expected to rise for all the reasons listed above regarding the health advantages of its intake.

Increased demand for olive oil in the food service and retail industries is a major factor driving market growth. It is a cooking oil with numerous health advantages. Olive oil comes in a great variety in the market because of its popularity.

Olive oil is ideal for skin care and personal care products since it possesses hydrating and exfoliating characteristics. In addition, a rise in demand for pharmaceutical and personal care products due to their advantages in preventing hair loss and nourishing the skin is anticipated to support market expansion. However, new business opportunities are opening up as cosmetics makers use olive oil more widely as a replacement for chemical-added commercial cosmetic active ingredients due to its antioxidant and anti-inflammatory characteristics.

Report Attributes	Details
Olive Oil Market Size (2023)	US$ 12 Billion
Projected Market Value (2033)	US$ 20 Billion
Global Market Growth Rate (2023-2033)	5.2% CAGR
Market Share of Virgin Olive Oil	40%
Key Companies Profiled	Sovena Group Deoleo Ybarra Group Salov Jaencoop Grupo Bunge Limited Associated British Foods The Adani Wilmar Ltd. Cargill Inc. Adams Group Inc.

Which Key Factors are Boosting Olive Oil Consumption?

“Increasing Demand for Handmade & Minimally Processed Edible Oil”

The industry has grown as a result of consumers' rising interest in raw, natural, and cold-pressed cooking oils, which are seen to be safer and healthier than their processed equivalents. According to such assertions, edible oil that has undergone minimum processing and manufacturing is thought to be free of any harmful compounds. Because there is little to no processing, the nutrients are retained, making the food healthier.

Furthermore, because virgin and extra-virgin olive oils undergo less processing and have a consistent fatty acid profile, demand for them has increased recently. Due to its pure flavor and unmodified organoleptic features, cold-pressed virgin oil has seen an increase in demand, which further propels the market performance. Additionally, the demand for natural, minimally processed edible olive fruit oil is expected to increase over the next ten years due to the growing environmental sustainability concerns around the world.

“Growing Popularity of Innovative Packaging for Olive Oil”

Unique and creative packaging is essential for assuring product distinctiveness and boosting brand visibility and sales in this fiercely competitive market. As a result, producers in the olive oil industry use clever and appealing packaging to increase sales. Innovative packaging has a significant impact on the sales of premium and high-quality olive oil products since premium packaging denotes a high-quality product.

How is Industry Growth Being Restrained to Some Extent?

“Availability of Substitutes and Less Production Capacity of Emerging Economies”

The accessibility of low-cost substitute oils is hampering market expansion. Due to the high price of olive oil, people are looking for cheap substitute oils that have comparable health benefits. Changes in olive oil prices will further slow market expansion. Another significant obstacle would be emerging economies' limited industrial capacity.

What Can New Companies Do to Stand Out in This Industry?

“New Market Entrants Implementing Advanced Technologies to Maximize Resource Utilization”

New entrants are making investments in cutting-edge technologies that let olive oil be processed while better retaining vital ingredients.

• An Italian start-up Libellula offers specialty olive oil. Olive oil, a common ingredient in Italian and Greek cuisine, contains anti-inflammatory and antioxidant compounds that provide several health advantages. The new business grows the olives without the use of pesticides and harvests them by hand. While Riserva contains significant quantities of polyphenols and chlorophyll, giving it a characteristic green color, Classico is its extra virgin olive oil and goes through the cold-pressing production method. To maximize resource utilization and guarantee high-quality food, Libellula is using advanced technologies, including solar wells, geographic information system (GIS) technology, and the internet of things (IoT).

Which Regional Market is Catching the Attention of Olive Oil Vendors?

“Increasing Acceptance of Organic Olive Oil in Pharmaceutical Applications in North America”

North America holds 40% share of the global market due to the growing adoption of organic olive oil in pharmaceutical applications. Consumers' increased interest in healthy oil as a means of avoiding lifestyle-related health issues that can arise from their hectic lifestyles is what primarily drives the market in North America. The demand for olive oil has increased as nutritional supplements used to maintain general health and wellness become more popular in the nutraceutical and pharmaceutical industries.

As customers' interest in using healthy oil when cooking has grown, virgin oil is becoming more common in all retail sectors. The need for different types of olive fruit oil in the region is anticipated to rise as omega-3-containing cosmetics become more popular because they promote skin health. High olive oil consumption is a result of its widespread use in a variety of culinary preparations and manufacturers' interest in the region as a potential production hub.

Country-wise Insights

Why is Germany Seeing High Olive Oil Consumption?

“Huge Demand for Functional Food Products in Germany”

The high level of olive tree cultivation and production is primarily responsible for market growth in Germany. The demand for olive fruit oil has expanded throughout the food processing sector due to the rising popularity of functional foods. Market expansion is being driven by rising consumer demand and the rapid use of nutritious extra virgin olive oil in a variety of applications.

What’s Leading to Increasing Olive Oil Demand in Japan?

“Surging Preference for Mediterranean Diet in Japan”

The market in Japan is projected to expand as a result of increasing health consciousness among consumers. Surging preference for the Mediterranean diet, the growing adoption of low-calorie olive oil, and the huge demand for foods containing omega-3 fatty acids are the elements propelling market expansion.

What Makes the U.S. an Attractive Market for Olive Oil Producers?

“Favorable Government Regulations to Advance Production Techniques in the U.S.”

Favorable government regulations to advance production techniques, the rising popularity of virgin olive oil among health-conscious consumers due to a variety of health benefits, rising urbanization, and globalization of the food trade are the aspects boosting market revenue in the U.S.

Category-wise Insights

Which Type of Olive Oil Will See Higher Demand Growth?

“Virgin Olive Oil Widely Used Due to Its Numerous Health Benefits”

Based on type, the market is classified into virgin olive oil and processed olive oil. Virgin olive oil holds around 40% of the global market.

A form of vegetable oil generated from olives is virgin olive oil. Unripe olives are crushed, and then cold-pressed, to create it. It has a lower acidity level than pure or semi-finished extra-virgin olive oil. The best method for making this kind of olive is first pressing since it retains all of the flavor and nutritional value of the fruit.

The consumption of virgin olive oil is expected to increase due to rising customer interest due to increased consumer awareness of the health benefits of virgin olive oil. Virgin oil's omega-3 and oleic acid content aid in preventing lifestyle-related illnesses such as cardiovascular disease and obesity. New processing techniques and technological innovations that enable producers to process virgin oil with the highest nutrient content effectively are also anticipated to boost the market.

Where is Olive Oil Most Widely Utilized?

“Olive Oil More Preferred in Food Service Industry to Increase Flavor & Texture of Food”

Based on application, the market is divided into food service, cosmetics, pharmaceuticals, and households. The use of olive oil in the food service industry accounts for around 50% of the total market value. Due to its qualities in increasing the flavor and texture of food without harming health, the demand for olive oil from the food service industry has increased significantly. The preference of consumers to eat their favorite foods without sacrificing flavor has greatly influenced food service retailers' decision to use olive oil.

Olive oil is widely used in the production of several culinary items, mostly healthful snacks. Manufacturers have been forced to add nutrient-rich components, including olive fruit oil, to increase the value of the finished product as consumers' preference for healthy snacks grows.

Olive oil is now used more extensively in a variety of food products as a viable substitute due to consumer preferences for leading healthier lives. To preserve the antioxidant and phenolic content of the vegetable and legume, olive oil is also utilized for salad dressing. As the primary source of healthy fats for customers with diabetes, the product has grown to play a significant role in the diets of diabetic patients.

Competitive Landscape

Top olive oil suppliers are expanding their geographic reach to attract a wider consumer base, which helps drive the market. Major competitors have focused on product development, expansions, and alliances. Key olive oil producers are concentrating on creating new goods and forming alliances with regional businesses to broaden their worldwide reach and make it possible to supply new products to shift consumer demands.

For instance,

• In 2019, to improve its position in the Chinese market, Deoleo, the leading manufacturer, announced the launch of a new olive oil brand, Carbonell.
• In 2022, Olio Nuovo Extra Virgin Olive Oil is a seasonal oil with a flavor that is both fresh and strong that was introduced by Curation Foods, Inc. under the moniker Of Olive Oil & Vinegars.

Key Segments Covered in Olive Oil Industry Research

• By Type :

  • Processed Olive Oil
  • Virgin Olive Oil

• By Application :

  • Food Service
  • Cosmetics
  • Pharmaceuticals
  • Households

• By Distribution Channel :

  • Supermarkets/Hypermarkets
  • Franchise Outlets
  • Specialty Stores
  • Online Stores

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa