OLIVE OIL MARKET ANALYSIS

Olive Oil Market Size and Trends

The global olive oil market is estimated to be valued at USD 22.51 Bn in 2024 and is expected to reach USD 32.74 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.5% from 2024 to 2031.

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Olive oil is widely used in cooking and for its perceived health benefits which is supporting the market growth. The increasing health-conscious population globally is driving the demand for olive oil. The market is experiencing increased demand from developing economies due to rising disposable incomes and changing food consumption habits. Consumers are shifting preferences towards natural and healthy edible oil options like olive oil which is helping drive market revenues.

Market Driver - Increasing health awareness

People nowadays are increasingly becoming health conscious and aware about the benefits of healthy cooking oils. With growing research studies highlighting various health benefits of olive oil like reducing chances of heart diseases and lowering bad cholesterol, more households are replacing other commonly used oils with olive oil in their daily cooking. Olive oil is known to contain antioxidants that can help reduce inflammation in the body linked to many lifestyle diseases. The high monounsaturated fat content in olive oil also helps maintain healthy cholesterol levels. Food magazines and health websites regularly publish articles about Mediterranean diet and how lightly cooked or cold-pressed olive oil forms an integral part of this diet known for various health benefits. Doctors and nutritionists also recommend use of olive oil over other oils like sunflower or soybean oil. Young families with small kids want to adopt healthier cooking practices and are motivated to include olive oil as their primary cooking medium. Even those looking to manage or lose weight prefer olive oil in moderate quantities over other oils for its reputation of being a heart-healthy fat. The trend of 'wellness' and focus on preventive healthcare is driving growth in consumption of naturally nutritious foods like olive oil globally. Increase in number of lifestyle diseases has prioritized health factors over price while choosing kitchen staples like cooking oils at home. All these developments have cumulatively made olive oil one of the fastest growing segments in global edible oil market in past few years.

Rising application in food industry

Apart from rising popularity among households, olive oil is increasingly finding newer application areas in the commercial food & beverage industry as well. With growing experimentation in culinary practices, many restaurants and food chains are replacing less healthy oils used for deep frying or sautéing with healthier extra virgin olive oil. The mild flavor also allows olive oil to lightly flavor various dishes without overpowering natural tastes. This quality has also led to rise in olive oil-based salad dressings, dips and spreads in packaged food market. Organic and cold-pressed olive oil varieties are in high demand from cafes and premium food joints looking for ingredient purity and quality. Rapid growth of fast casual dining segment focusing on healthy menus gives ample opportunities to olive oil suppliers. Food manufacturers are also innovating with olive oil-based mayonnaise, sauces, and pasta/pizza toppings given rising health-conscious segment among consumers. Olive oil has emerged as solution for producers looking to offer heart-healthy claims for their food products. The multi-cuisine trend also exposes consumers worldwide to Mediterranean flavors where olive oil is used so abundantly, further boosting its acceptance in novel applications. Overall, the 'clean label' focus and versatility of olive oil makes it a favorite choice for food companies seeking natural and mildly flavored alternatives.