According to Fact.MR, the global market for olive oil is expected to grow at moderate pace, procuring revenues worth just over US$11Bn (AU$13.75Bn) towards the end of forecast period, 2017-22.
In its recent report, Fact.MR offers a comprehensive perspective on the global olive oil market across few targeted regions. Olive oil is slowly but surely becoming the cooking oil of choice for different demographics across both emerging and developed economies. In addition to that, it also finds application in areas as diverse as cosmetics, pharmaceuticals, and as a source of fuel, further boosting its appeal. The report focuses on the provision of in-depth research and detailed insights about global olive oil market for the forecast period 2017 to 2022.
Bad Weather Has Taken a Huge Toll on the Olive Oil Market
The supply in the olive oil market entirely depends on weather conditions in key growing regions in the Mediterranean. Erratic weather in Italy and Spain has drastically affected the olive oil market sending prices through the roof. Olive oil is charged according to the quantity per tablespoon, exactly like other expensive foodstuffs such as caviar. There has been substantial price volatility in the last few years and global production could even reduce because of this. Heat waves witnessed in Italy and Greece and recent floods in Spain have devastated the olive crop. At the same time, demand shows no signs of abating in emerging economies led by China, pointing to challenging times ahead in the olive oil market which is anticipated to reach a value of over US$11billion (AU$13.75Bn) in 2022.
Process Segment Far Outpaces Virgin Segment in the Olive Oil Market
The process segment has a commanding position over its virgin counterpart with a revenue share of almost 3/4th in the olive oil market. This segment is anticipated to grow to a value of just under US$8billion (AU$10Bn) by the end of the forecast period, making it an extremely lucrative opportunity that key stakeholders cannot ignore. Europe, as the bastion of olive oil production, accounts for the largest contribution to the processed segment in the olive oil market and it is expected to remain so throughout the course of the study. Key players in the olive oil market are advised to take note of this and devise their long-term strategies accordingly.
Focus on Foodservice and Retail Segment in the Olive Oil Market
The food service and the retail segment hold the lion’s share by end user as they represent almost 4/5th of the olive oil market. Europe, followed by APEJ are the most important regions in the food service segment as they are the only two that are poised to exceed a billion dollars by the end of 2022. The retail segment is also quite dynamic and it is one which companies actively involved in the olive oil market would do well to target with customized strategies for discerning customers. As with the food service, the most attractive regions in the retail segment are undoubtedly Europe and the APEJ. While the virtues of olive oil are certainly known in the former, they can be marketed extensively in the latter.
Smaller Opportunity in the Franchise Segment of Olive Oil Market
The franchise segment represents a market opportunity of less than a fifth by distribution channel in the olive oil market. With a CAGR of 3.3% and a value of a little under US$2billion (AU$2.5Bn) in end 2022, only players with an effective marketing message can hope to succeed in this segment.
Online Segment Could be the Future of the Olive Oil Market
The e-commerce boom has not impacted the olive oil market as much as it should have but it is highly likely to do so in the days ahead. Companies that do not devote time to this strategic distribution channel may be left behind in the 21st century.
The report has also anticipated that companies such as The Adani Wilmar Ltd., Ruchi Soya Industries Ltd., Associated British Foods (Ach), Cargill Inc., Archer Daniels Midland Company, Bunge Limited, and Adams Group Inc. will remain key players in the global olive oil market through 2022.
More details about the Olive Oil Market Forecast, Trend Analysis & Competition Tracking : Global Review 2017-22 available here