Europe Olive Oil Market Report and Forecast 2024-2032

Europe Olive Oil Market Size

The olive oil market in Europe is projected to grow at a CAGR of 3.4% between 2024 and 2032.

Europe Olive Oil Market Outlook

• As per the UK Government, the average household weekly expenditure on food and non-alcoholic drinks was GBP 62.2 in 2022.

• As per the USDA Foreign Agricultural Service, in 2022 Spain’s total imports of agricultural and related products reached $53.9 billion which can aid Europe olive oil market value.

• As per the USDA FAS, imports by the European Union of major oilseeds in 2023-24 were 21.41 million metric tons.

Europe Olive Oil Market Growth

Growth in the Europe olive oil market is led by hypermarkets and supermarkets as a traditional means of distribution.

Supermarkets and hypermarkets are traditional retail outlets that significantly help distribute consumer goods across Europe. They offer olive oils alongside a wide range of products catering to various customer segments. Olive oil is typically displayed prominently in the cooking oils section. These stores often run promotions and discounts, attracting consumers who are enticed by deals or convenient availability.

As per the Europe olive oil market dynamics and trends, growth in the olive oil market comes from the growing popularity of virgin olive oil as a sustainable product which has many health benefits and appeals to a more premium cohort. In January 2024 the Italian Institute of Services for the Agricultural and Food Market announced an increase of 3.6 percent in the production of Italian extra virgin olive oils at 13,500 tons.

Europe Olive Oil Market Trends

Online platforms have been rapidly growing in importance within the olive oil market in Europe, mirroring broader trends in e-commerce. Online retailers offer a wide selection of olive oil brands and varieties, boosting the Europe olive oil demand. Online platforms by major players in the industry like Deoleo and Cargill are offering consumers more informed purchases from their respective comfort zone. They also often offer subscription services, loyalty programs, and personalized recommendations, enhancing the shopping experience.

Recent Developments

According to European Union officials, the nine member countries of the 27-member bloc were expected to produce approximately 1.5 million tons of olive oil in the 2023-24 crop year. This projection represents a slight increase from the previous year's production levels, driven by favourable weather conditions and improved agricultural practices.

Industry Outlook

As per the Europe olive oil industry analysis, the European Union is responsible for approximately 67% of the global production of olive oil. Olive trees are cultivated on about 4 million hectares, primarily in the Mediterranean countries of the EU, with the aid of traditional, intensive, and super-intensive groves.

Italy and Spain are the top consumers of olive oil within the EU region, each consuming around 500,000 tonnes annually, meanwhile, Greece has the highest per capita consumption in the EU, with an average of about 12 kg per person per year, which increases the Europe olive oil industry revenue. Overall, the EU contributes to roughly 53% of the world's olive oil consumption.

The price of olive oil has experienced a notable rise as a result of several factors, such as severe droughts in important production areas like southern Spain, Portugal, and Greece. These droughts have led to lower yields and decreased production levels. By January 2024, the price of olive oil had reached an all-time high of €9.20 per kilogram. This increase in price is also impacted by the escalating energy and production expenses. As producers and retailers grapple with these challenges, it remains to be seen how the market will adjust and whether prices of olive oil can stabilise in the future or not.

As per the legal framework, EU member states are required to conduct a minimum number of annual controls, which should be proportional to the amount of olive oil being marketed in their respective countries. The main objective of these controls is to verify that the labelling and packaging of the oils comply with legal requirements and that the category of the oil matches the declared category.

The Growth of the European Olive Oil Market Driven by Health Benefits and Mediterranean Diet Popularity

• Health Benefits: Increasing awareness of the health benefits of olive oil, such as its antioxidant properties and heart health benefits, drives consumer demand.

• Mediterranean Diet Popularity: Growing popularity of the Mediterranean diet, which heavily features olive oil, boosts consumption across Europe.

• Culinary Applications: Wide range of culinary uses, from cooking to salad dressings, makes olive oil a staple in European kitchens, supporting consistent Europe olive oil demand forecast.

• Quality Certifications: Presence of quality certifications and geographical indications (e.g., PDO, PGI) enhances consumer trust and preference for European olive oil products.

Challenges Impacting the Growth of the Europe Olive Oil Industry Include Climate Vulnerability and Price Fluctuations

• Climate Vulnerability: Olive cultivation is highly susceptible to climate conditions, including droughts and extreme weather, which can impact yield and quality.

• Price Fluctuations: Volatility in olive oil prices due to variations in harvest and production costs can affect market stability and profitability for producers can affect Europe olive oil demand growth.

• Competition from Alternatives: Availability of alternative oils (e.g., sunflower, canola) at lower prices poses a challenge to olive oil's market share.

• Adulteration and Fraud: Issues with olive oil adulteration and mislabeling can undermine consumer confidence and tarnish the market's reputation.

Opportunities in the Europe Olive Oil Industry Driven by Organic Segments and Export Potential

• Organic and Premium Segments: Rising demand for organic and high quality, premium olive oil products present opportunities for market differentiation and higher margins, further aiding the growth of the Europe olive oil market.

• Export Potential: European olive oil producers have the chance to grow by tapping into export markets, particularly in North America and Asia.

• Product Diversification: The development of new olive oil-based products, such as infused oils and health supplements, can attract new consumer segments.

• Sustainability Initiatives: Adopting sustainable agricultural methods and advocating for eco-friendly production can boost brand reputation and attract eco-conscious customers.

Setbacks Faced by the Europe Market Due to Economic Downturns and Regulatory Changes

• Economic Downturns: Economic instability in key European markets can reduce consumer spending on premium food products like olive oil and influence Europe olive oil market opportunities. 

• Regulatory Changes: Changes in agricultural policies, trade regulations, or tariffs within the EU and with non-EU countries can impact market dynamics and trade flows.

• Aging Olive Groves: Many olive groves in Europe are ageing and less productive, requiring significant investment in replanting and modernization to maintain yield.

• Consumer Misconceptions: Misunderstandings about the different types of olive oil (e.g., extra virgin vs. refined) and their uses can affect purchasing decisions and market growth.

Key Players in the Europe Market and Their Strategic Initiatives:

Deoleo S.A.

• Brand Portfolio: Strengthening its brand portfolio with well-known brands such as Bertolli, Carapelli, and Carbonell can boost Europe olive oil market revenue.

• Sustainability: Implementing sustainable sourcing and production practices to appeal to environmentally conscious consumers.

Sovena Group

• Vertical Integration: Controlling the entire supply chain from olive cultivation to production to ensure quality and cost efficiency.

• Product Diversification: Offering a wide range of olive oil products, including organic and premium options can boost demand of Europe olive oil market.

Borges International Group

• Diversification: Diversifying its product portfolio to include various types of olive oils and related products.

• Sustainability: Committing to sustainable agriculture and production practices to enhance brand reputation.

Grupo Ybarra Alimentación

• Brand Strengthening: Focusing on brand-building activities to enhance consumer loyalty and brand recognition can fuel Europe olive oil market expansion.

• Innovation: Investing in product innovation to offer unique and high-quality olive oil products.

Gallo Worldwide

• Innovation: Developing innovative products and packaging to attract a broader consumer base.

• Sustainability: Adopting sustainable practices throughout the supply chain to ensure long-term growth of Europe olive oil industry.

Monini S.p.A.

• Premium Products: Focusing on the premium segment of the market by offering high-quality, artisanal olive oils.

• Market Expansion: Expanding its presence in new and existing markets through strategic partnerships and marketing initiatives.

Europe Olive Oil Industry Segmentations

Europe Olive Oil Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Virgin

• Refined

• Others

Market Breakup by Application

• Food and Beverage

• Personal Care and Cosmetics

• Pharmaceuticals

• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Online

• Others

Market Breakup by Country

• United Kingdom

• Germany

• France

• Italy

• Others

Europe Olive Oil Market Share

The olive oil market in Europe is led by virgin olive oil which is extracted solely mechanically from olives without the use of any chemicals or refining processes. As per the Europe olive oil analysis, virgin olive oil is renowned for its superior quality, health benefits, natural flavours, and aroma. It is an appealing oil category among individuals who are concerned more about the quality.

Competitive Landscape

Major market players are expanding their outreach through mergers, acquisitions, and rising investment in sustainable practices in the production of olive oil.

• Deoleo, S.A.

• Sovena Group

• Borges Agricultural & Industrial Edible Oils, S.A.

• Minerva Ltd.

• Unilever Plc

• Del Monte Foods, Inc.

• Cargill, Incorporated

• GRUPPO SALOV

• Grupo Ybarra Alimentación, S.L.

• Lorenzo Sandua, SLU

• Others

Europe Olive Oil Market Regional Analysis

Spain is the largest producer of olive oil in the region, contributing over 40% to the total global production. Spain's long history of olive cultivation and favourable climate conditions have made it the leading producer of olive oil in the world further aiding the Europe olive oil market development. Spanish olive oil is renowned for its superior taste, aroma, and quality, making it highly sought after in international markets.

Key Highlights of the Report

Europe Olive Oil Market Report Snapshots

Europe Olive Oil Market Size

Europe Olive Oil Market Growth

Europe Olive Oil Market Trends

Europe Olive Oil Market Share

Europe Olive Oil Companies

Europe Olive Oil Market Regional Analysis