Olive Oil Market size is forecast to reach $4.79 Billion by 2025, growing at a CAGR of 2.93% during the forecast period 2020-2025. Olive oil is a form of fat obtained from the fruit of Olea europaea (olive tree) which consists of healthy fatty acids like oleic acid along with palmitic acid and linoleic acid. Olive oil is popular across the globe and easily available in the market. It is widely preferred for its properties to prevent heart diseases by maintaining cholesterol levels in the body. It also has moisturizing and exfoliating properties, which leads to its usage in various skincare and personal care products.Olive oil offer usage for different applications such as spray for dressing, cosmetics and personal care, usages in foods and medicines. Owing to these factors there is huge demand for Olive Oil in the Market.
By Type - Segment Analysis
Based on type Olive Oil market is segmented in Virgin Olive Oil, Refined Olive Oil, Pomace Olive Oil and Others. Virgin olive oil was the largest product segment with commanding revenue share in 2019. This is owing to 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 set 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 poised to remain low as compared to the virgin form for the forecast period 2020-2025.
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By Application- Segment Analysis
The application segment of Olive Oil Market has Pharmaceutical, Food, Cosmetic & Personal Care, Pet foods, soaps and lubricants and others.The Food segment has dominated the market with the highest market share in 2019 and is estimated to grow at a CAGR of 3.19% during the forecast period 2020-2025. 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.
By Geography- Segment Analysis
The global Olive Oil Market by geography had the dominant share in North America,in terms of revenue in 2019. Europe held the largest market share in 2019 accounting to 38.7% of total market. This is owing to olive farming, which is one of the important business in these countries. The foodservice 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 poised to be the fastest-growing region with the highest CAGR from 2020 to 2025. The main reason owing to the consumption pattern changes in the region. Consumers have become health conscious and preferring healthy foods with low-fat content. Besides, the per capita spending on healthy food in countries such as China and India has increased significantly. China has also become one of the prime export destinations for producers, which are set to increase the market during the forecast period 2020-2025.
Drivers – Olive Oil Market
Growing awareness of health benefits
Olive oil is gluten-free, which makes it a healthy and tasty alternative to conventional edible oils. It is rich in oleic acid and antioxidants, and it helps in reducing inflammation and lowering the risk of chronic and heart diseases, respectively. Apart from these benefits, olive oil also helps in the treatment of rheumatoid arthritis and osteoporosis and prevents type 2 diabetes, stomach cancer, and stomach ulcers. Owing to all the above reasons for the health benefits associated with its consumption, the demand for olive oil isset to increase among consumers. Besides, growth in demand from the personal care and pharmaceutical products,owing to its benefits against hair fall and skin nourishment is poised to foster the growth of the market.
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Challenges– Olive Oil Market
Less Production Capacity
The surge in demand for Olive Oil, with Low production capacity of the emerging nations, the market is poised to suffer from restricted growth, variations in the price of olives make it vulnerable to price sensitivity, and this is a challenge to overcome for the market.
Multifunctional Food Ingredients industry outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Olive Oil Market. Key companies of this market are Avril SCA, Borges International Group SLU, Botticelli Foods, Bunge Ltd., California Olive Ranch, Cargill Inc., Deoleo SA, Grup Pons, Olivier Pacific Ltd., Sovena Group.
Acquisitions/Product Launches:
In April 2018-DEOLEO owned brand BERTOLLI adopted a new packaging format in the form of an oval-shaped bottle representing the Piazza dell’Anfiteatroto increase its brand awareness.
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.
In October 2018, DcoopS.Coop.And. acquired a 5.0% stake in Maçarico SA, a Portuguese company, to strengthen its position in the market.
In May 2018, Avril Group announced that they had acquired a majority share in Costa d’Oro, an Italy based olive oil producer. This acquisition significantly improve the production capacities of olive oil for Avril Group while also improving the geographical presence of the company expanding the market share. The acquisition also includes a deal of minority stake being given to Castel.
Key Takeaways
Geographically, Europe’s olive oil market accounted for the highest revenue share in 2019 and is poised to dominate the target market during the forecast period 2020-2025 owing to the increase in demand of food sector.
Manufacturers, innovative and creative packaging is set to play a vital role in ensuring product differentiation, improving brand awareness, and sales in the forecast period 2020-2025.
An Increase in demand from the personal care and pharmaceutical products owing to the benefits against hair fall and skin nourishment is set to foster the growth of the market over the forecast period 2020-2025.
Related Report:
1.Edible Oil Market
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), by application (Cooking, Cosmetics, etc.
This report provides detailed historical analysis of global market for Olive Oil from 2015-2020, and provides extensive market forecasts from 2021-2030 by region/country and subsectors.
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