Olive Oil Market Size, Share & Trends Analysis Report By Type (Refined, Virgin), By Packaging (Bottles, Pouches, Cans), By Application, By Distribution Channel, By Region, And Segment Forecasts, 2023 - 2030

Olive Oil Market Size & Trends

The global olive oil market size was estimated at USD 22.30 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 5.2% from 2023 to 2030. The demand for olive oil has experienced strong growth over the past few years, aided by several factors. The developing trend of the inclusion of nutrient-rich oils in diets to mitigate the risk of various health conditions, along with the growing popularity of artisanal and minimally processed edible oils, has driven this growth. Consumers are increasingly seeking healthier alternatives and are attracted to the unique qualities and benefits provided by olive oil, contributing to its high demand.

The demand for olive oil remains consistently high due to several factors. Firstly, consumers are very interested in this product owing to its range of health benefits. Olive oil is renowned for its rich content of monounsaturated fats and antioxidants and has also been associated with reducing the risk of cardiovascular diseases, lowering cholesterol levels, and overall health improvements. Furthermore, it is an excellent source of vitamin E and possesses remarkable anti-inflammatory properties.

The market's growth is primarily driven by the prevailing trend of prioritizing overall health and well-being, leading to a shift towards healthier oil choices. Consumers are increasingly inclined towards incorporating healthy vegetable oils into their regular diets due to the rising prevalence of lifestyle-related health conditions. For instance, in February 2023, Starbucks introduced three new coffee flavors featuring olive oil as a prominent ingredient. Currently, these coffee flavors are exclusively available in Starbucks stores across Italy. However, there are plans to introduce these coffee lines internationally in the upcoming months.

In addition, olive oil's culinary versatility and distinctive flavor profile position it as a favored choice among discerning consumers. It is a fundamental ingredient across various culinary applications, from salad dressings and marinades to sautéing and baking. The exceptional taste and aroma of olive oil enhance the flavors of various dishes, imparting a touch of refinement and complexity.

The COVID-19 pandemic has had positive and negative impacts on the growth of the market. The increased importance given to health and wellness during this period led to a surge in demand for olive oil, as consumers sought to maintain a healthy lifestyle practice and boost their immunity. Olive oil is well-regarded for its variety of health benefits, including its high content of monounsaturated fats and antioxidants.

However, the pandemic has also presented challenges to the market. The restrictions on travel and disruptions in the global supply chain have affected the production, distribution, and export of olive oil. The closure of restaurants and hospitality businesses, which are significant consumers of olive oil, has further impacted the market.

Moreover, during the COVID-19 pandemic, there was a notable increase in the demand for nutritious edible oils, mainly olive fruit oil, in emerging economies. This trend was driven by the desire of consumers to recreate restaurant-like gourmet experiences within the comfort of their homes. Notably, brands such as Del Monte and Oleev witnessed a significant 30% rise in sales throughout 2020, while Cargill's brand Leonardo experienced a growth rate of approximately 15-20% in the last two quarters. These statistics were reported by the CEO of FieldFresh Foods.

Type Insights

Based on type, the refined olive oil segment dominated the market with a share of 31.1% in 2022. Refined olive oil possesses a milder flavor in comparison to extra virgin olive oil. This makes it very suitable for several types of cooking methods and culinary applications, as it does not overpower the natural flavors of other ingredients. It can be used for sautéing, frying, and baking, and is also used for salad dressings or marinades.

The virgin olive oil segment is projected to expand at a CAGR of 6.1% during the assessment period. Virgin olive oil retains the natural flavors and aromas of the olives and offers a rich and distinctive taste. Its fruity, peppery, and sometimes grassy notes elevate the overall flavor profile of dishes, whether used for dipping, drizzling, or dressing salads. The unique taste and aroma of virgin olive oil contribute to its high popularity among food enthusiasts and connoisseurs.

Application Insights

The food & beverage segment held the largest revenue share of 43.4% in 2022 and is expected to maintain its position during the projection period. Olive oil is rich in monounsaturated fats, which are considered to be heart-healthy fats. Regular olive oil consumption has been associated with several health benefits, including reduced heart disease risk, improved cholesterol levels, and decreased inflammation. As consumers prioritize healthier food options, utilizing olive oil in food and beverage items aligns with their preferences for nutritious ingredients.

The pharmaceuticals segment is anticipated to grow at a CAGR of about 5.3% during the forecast period. Olive oil's popularity in the pharmaceutical industry stems from its role as an excipient, an inactive ingredient that enhances active pharmaceutical ingredients' delivery, stability, and efficacy (APIs). Its compatibility with different drugs makes it an ideal carrier or solvent in oral and topical formulations. Olive oil's ability to dissolve lipophilic compounds and improve drug bioavailability further adds to its appeal in pharmaceutical applications.

Distribution Channel Insights

The supermarkets & hypermarkets segment dominated the market with a share of 36.8% in 2022. Supermarkets typically offer various olive oil brands, types (such as extra virgin, virgin, or regular), and packaging sizes. This variety allows consumers to choose the olive oil that meets their preferences, dietary needs, and budget. It makes it easier for consumers to find olive oil at affordable prices and compare different brands or types to make their purchasing decisions.

The online segment is estimated to grow at a CAGR of 6.1% during the forecast period. Consumers are increasingly drawn to online channels due to their inherent convenience, including attractive discounts, a comprehensive product assortment, seamless payment options, doorstep delivery, and other benefits. The convenience offered by online channels plays a pivotal role in stimulating consumer demand. In addition, online retailers frequently offer diverse olive oils to cater to individual preferences and requirements.

Packaging Insights

In terms of packaging, the bottle segment dominated the market with a share of 52.7% in 2022 and will continue to maintain its dominance throughout the forecast period. Bottles allow for controlled pouring and precise measurement of olive oil, making it easier for consumers to use the desired amount in cooking, dressing, or other applications. The sealed bottles also help prevent spillage and facilitate easy storage and transportation.

The pouches segment is estimated to grow at a CAGR of about 4.7% during the forecast period. Pouches can be a cost-effective packaging option for olive oil, especially in production, transportation, and storage. Pouches are typically lighter and require less packaging than traditional glass or plastic bottles. It can reduce production and shipping costs, making it an economical choice for manufacturers and consumers.

Regional Insights

Europe accounted for the largest revenue share of 63.8% in the market in 2022. Olive oil has been a critical part of the Mediterranean diet for centuries, particularly in nations such as Greece, Spain, and Italy. The region's culinary traditions and cultural heritage have formed an ingrained preference for olive oil in cooking and gastronomy, causing its sustained demand. European countries are renowned for producing high-quality olive oil, often characterized by strict quality standards and certifications. The diverse climatic conditions, soil compositions, and olive cultivars across Europe contribute to the production of a wide range of olive oils, each with distinct flavor profiles and characteristics; such a variety of options appeals to consumers seeking specific flavors or qualities in olive oil.

North America is expected to advance at a CAGR of 7.3% through 2030. There is an increasing emphasis on health and wellness in the region, leading to high awareness of the health benefits of olive oil consumption. Moreover, a rising interest in plant-based diets and sustainability practices has also boosted the demand for olive oil. As a plant-derived oil, olive oil aligns with the principles of plant-based eating and sustainable food choices. Consumers prioritizing ethical and environmentally friendly options often choose olive oil as a healthier and more sustainable alternative to other cooking oils, further driving its consumption in North America.

Key Companies & Market Share Insights

The organic olive oil industry is experiencing growth due to the rapid expansion of the food and beverage, cosmetics, and personal care sectors in developing nations, along with increased public awareness of the benefits of organic olive oil. The market exhibits fragmentation due to multiple renowned players operating throughout Europe. These players are notably prioritizing the expansion of their geographic reach to secure a broader consumer base. This strategic focus plays a significant role in driving market growth.

For instance, in July 2022, Genosa, a Spanish company, introduced a new olive oil variant enriched with soluble hydroxytyrosol, a phenol-rich compound known for its health-promoting properties. This innovative product provides various health benefits and potential applications in different industries.

Olive Oil Market Report Scope

Global Olive Oil Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global olive oil market report based on type, application, packaging, distribution channel, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Refined

  • Virgin

  • Extra Virgin

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Food & Beverage

  • Personal Care And Cosmetics

  • Pharmaceuticals

  • Others

• Packaging Outlook (Revenue, USD Million, 2018 - 2030)

  • Bottles

  • Pouches

  • Cans​​​​​​​

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Supermarkets & Hypermarkets

  • Convenience Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • UAE

    • South Africa