Olive Oil Market Size, Share & COVID-19 Impact Analysis, By Type (Refined/Pure, Virgin, and Others), By End-user (Household/Retail, Foodservice/HoReCa, Food Manufacturing, and Others), and Regional Forecast, 2022-2029

The global olive oil market size was valued at USD 13.77 billion in 2021. The market is projected to grow from USD 14.19 billion in 2022 to USD 17.79 billion by 2029, exhibiting a CAGR of 3.28% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with olive oil experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 2.78% in 2020 as compared to 2019. 

The market is experiencing robust growth primarily due to increasing demand for olive fruit oil across the food service and retail channels. In addition, the growing interest in trying out exotic cuisines has mainly contributed to the increased popularity of Olea europaea fruit oil across various regions in the world. Olea europaea fruit oil is an integral part of a Mediterranean diet owing to its several health benefits. The rising awareness regarding its health benefits is attributed to its omega-3 fatty acid content, which is surging its demand in the forthcoming years. Thus, in recent years, olive fruit oil has been extensively utilized as an ingredient in the manufacturing of dietary supplements and pharmaceuticals.

COVID-19 IMPACT

Disruption in Olive Fruit Oil Supply Chain during COVID-19 Pandemic to Impede Growth

The demand and sale of olive oil have experienced a sudden slump due to the outbreak of the COVID-19 pandemic. Nationwide lockdown in various countries resulted in the disruption of trade activities, which slowed the growth of the industry. According to the U.S. Census Bureau, olive oil imports by the U.S. decreased by 13% in 2020 as compared to those in 2019. However, increased concerns related to immunity and overall health have re-established the demand for healthy oils, which is expected to continue during and after the pandemic.

The growing interest in home cooking due to rising concerns related to food safety has increased the oil sale in Mediterranean countries. For instance, sales in Italy 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. Furthermore, in emerging economies, such as India, the demand for healthy edible oils surged amidst COVID-19 as olive fruit oil started to gain shelf spaces in Indian households for re-creating restaurant-like gourmet experiences at home. According to the CEO of FieldFresh Foods, Del Monte and Oleev brands experienced 30% increase in their sales during 2020 while Cargill's brand Leonardo grew by nearly 15-20% in the last two quarters of 2020.

In addition, the growing consumer preference for immunity-boosting food products during such an outbreak is likely to fuel demand for healthy and energy-efficient snack items. The growing concern over health and wellbeing has propelled the rising trend of items with function-specific health advantages.

LATEST TRENDS

 

 

Increasing 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 toward 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 & 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. The product 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.

DRIVING FACTORS

Increasing Awareness about the Products’ Health Benefits to Fuel Market Performance

The growing appreciation of fats and oils containing MUFAs due to their health benefiting attributes has propelled their demand among consumers. Recently, numerous clinical studies have suggested that consuming omega-3 enriched products can support research cardiovascular health and other body functions. The high omega-3 content in olive fruit oil has fueled its demand among consumers owing to their increased understanding about the importance of essential fatty acids consumption in maintaining good health. As it provides beneficial fatty acids, antioxidants, and vitamins, it has led olive fruit oil to gain remarkable popularity as a healthy oil across the globe.

As ethnic Mediterranean cuisines gain worldwide popularity, it has significantly contributed in surging the demand for olive fruit oil. Its wide incorporation in various cuisines, such as Italian, Greek, and Spanish, has also influenced its surge in demand. Furthermore, the rise in travel and tourism and consumers willing to experiment with new flavors, textures, and exotic cuisines have supported the market performance.

Rise in Popularity of Artisanal and Minimally Processed Edible Oils to Pave Growth

The growing interests of individuals toward raw, natural, and cold-pressed cooking oils as they are attributed to be safer and healthier in comparison to their processed counterparts has supported the market growth. Edible oils that are minimally processed and manufactured under such claims are perceived to be free from any detrimental chemicals. Since there is no to minimal processing involved, it helps in retaining all the nutritive value, making it healthier. Moreover, the demand for virgin and extra-virgin olive oils has fueled in recent years as they are minimally processed and has a stable fatty acid profile. Cold-pressed virgin oils have witnessed surge in demand due to their clean flavor and unaltered organoleptic properties, which aid in further driving the market performance. Furthermore, the growing environmental sustainability concerns worldwide is likely to surge the demand for edible olive fruit oil, which is natural and minimally processed in the foreseeable years.

RESTRAINING FACTORS

Presence of Low-cost Edible Oil Counterparts in the Market to Slow Down Market Performance

The high cost of olive fruit oil poses a significant hindrance to its growth potential as consumers start to seek low-cost alternative oils to Olea europaea fruit oil possessing similar nutritional properties. Edible oils, such as canola, sunflower, coconut oil, and others, are gaining wide traction among consumers due to their high essential fatty acids content, which helps in maintaining overall health. This has influenced the manufacturers to invest in advanced technologies that help retain the essential properties in these products, and minimal nutrients are lost during the processing of the oils. Thus, propelling the demand for rice bran and sunflower oils as a substitute for olive fruit oil. In addition, the comparatively low investment involved in manufacturing sunflower and other vegetable oils further hampers the olive oil market growth. 

SEGMENTATION

By Type Analysis

 

 

Virgin Olive Oil to Hold the Largest Market Share Owing to its Higher Nutrient Content

Based on type, the market is segmented into virgin olive oil, pure/refined olive oil, and others (lampante oil and pomace oil).

The virgin olive oil segment is expected to witness strong sales performance owing to its rising popularity among consumers attributed to the growing awareness regarding their health benefits. Omega-3 and oleic acid present in 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 have the highest amount of nutrients further drive market growth.

The pure/refined olive oil segment is projected to exhibit substantial growth due to its rising utilization in pharmaceuticals, dietary supplements, and the cosmetic industries. The increasing demand for nutrient-enriched animal feed has significantly amplified the requirement for olive fruit oil to manufacture high-value animal feed.

By End-user Analysis

Growing Use of Olive Fruit Oil in Households & Foodservice Sector Propels Market Growth

The increasing olive 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 surged the demand for cold-pressed virgin olive oils. 

There has been a significant rise in demand for Olea europaea fruit oil from the food service sector due to its attributes in enhancing flavor and texture without having a detrimental impact on health. Consumers' preference to enjoy their favorite meals without compromising their taste has majorly contributed to food service retailers opting for the oil over other cooking oils.

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. Olea europaea 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 market growth in the coming years.

REGIONAL INSIGHTS

 

On the basis of geography, the market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

The market in Europe was valued at USD 6.98 billion in 2021. The robust growth of the market in Europe is mainly attributed to the highest olive tree cultivation and production in the region. Italy and Spain are the primary countries producing and supplying Olea europaea fruit oil to various countries in other regions. The growing popularity of functional foods has increased the demand for Olea europaea fruit oil across the food manufacturing industry in Europe.

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. 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 Olea europaea fruit oil for nutraceuticals and pharmaceutical sectors in the region.

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 growing popularity of functional food & beverages in the region is contributing to the rising demand for omega-3 fatty acid-fortified foods.

South America is expected to witness substantial growth due to rising awareness of the health benefits of olive fruit oil. Virgin 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 improve skin health is expected to surge the demand for other olive fruit oil varieties in the region.

 

 

The Middle East & Africa is emerging as a prospective market in Olea europaea fruit oil consumption due to its wide application in various culinary preparations coupled with manufacturers eyeing this region as a prospective production hub. This is attributed to the rise in olive tree plantations supported by the regional government. According to the Turkish Ministry of Agriculture and Forestry data, the Turkish olive fruit oil production increased by 32% in 2021 compared to the previous year. Thus, such key factors are expected to promote the region’s growth in the years to come.

KEY INDUSTRY PLAYERS

Prominent Players Focus on Geographical Expansion to Strengthen their Presence in the Global Marketplace

The market is fragmented owing to the presence of several prominent players spread across Europe and Middle Eastern regions. These players are prominently focusing on expanding their geographical footprint to gain a larger consumer base, which, in turn, contributes to driving the market. For instance, in July 2020, Sovena Group entered the Chilean market after purchasing a 24.6% stake in a regional company, Soho, which is a producer of olive fruit oil brands such as Olave, Huasco, and SOL de Aculeo.

Other key players, such as Borges S.A., Salov SpA, and Deoleo S.A., are focusing on strategic mergers, acquisitions, and partnerships to gain 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.

 

source:https://www.fortunebusinessinsights.com/amp/industry-reports/olive-oil-market-101455

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