Olive Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Olive Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The olive market is anticipated to record a CAGR of 4.5% during the forecast period (2022-2027).

The aftermath of the COVID-19 outbreak resulted in disruptions in the supply chain of the olive market, impacting the whole process, from the field to the consumers. According to FAOSTAT, the production of olives worldwide has been seeing a downward trend ever since 2019. However, the area under olive cultivation improved in 2020 after a dip in 2019.

The olive market has grown rapidly in recent years, majorly driven by a shift in the consumption pattern toward the inclusion of olive oil in regular diet and the usage of table olives from Mediterranean cuisine in non-European countries.

Although the processing of olives into edible oil has dominated the trend of olive production for many years, the demand for table olives for various purposes, such as freshly fermented fruits, olive pickles, and food toppings, is on the rise across the countries. This trend is anticipated to positively affect the market in the long term.

In terms of production, Spain is the largest producer of olives in the world, and Italy holds the second-largest share. Though olive is also produced in various new regions, it is concentrated in the Mediterranean. According to the FAO, the global harvested area of olives was recorded at 9,725.3 thousand ha in 2017, which grew to 12,763.2 thousand ha by 2020.

Although olive oil consumption has been traditionally based in the Mediterranean countries, such as Spain, Italy, Morocco, Tunisia, and others, the growing middle-income families and affluent consumers in China, Brazil, and India have started including refined and virgin olive oil in their regular diet. According to a report by the Italian farmer's group, Coldiretti, the world's consumption of olive oil increased by as much as 73% over the last 25 years.

According to the International Olive Council (IOC), olive oil imports to Brazil rose by almost 29% during 2017-2018, Canada by 12%, United States by 4%, Russia by 2%, and Australia and Japan by 1%, during the same period. The global demand for table olives also stemmed from the use of olives as snacks. The producers are applying different fermentation methods to treat olives and offering the final assorted products for consumption.

The European Union is the leading producer, consumer, and exporter of olives. For instance, according to the FAO, the harvested area of olives in Europe was recorded at 4,936.3 thousand ha in 2017, which increased to 5,148.6 thousand ha by 2020. Also, as per the International Olive Council, the consumption volume of table olives in the European Union increased from 572.0 thousand metric ton in 2016-2017 to 592.3 thousand metric ton in 2018-2019.

Europe holds a major share of global consumption, with Spain, Italy, Greece, and France accounting for over 80% of the consumption. For instance, the consumption of table olives in France was recorded at 65 thousand metric ton in 2016-2017, which grew to 70 thousand metric ton by 2019-2020.

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