Europe Olive Oil Market Forecast to Hit US$ 15.7 Bn by 2032 - Persistence Market Research

The olive oil market in Europe is a cornerstone of both the region's agricultural landscape and its culinary culture. This market is well-established and exhibits a steady growth trajectory driven by evolving consumer preferences, innovations in product offerings, and the strong reputation of European olive oil producers. The market is expected to grow from USD 12.6 billion in 2025 to USD 15.7 billion by 2032, recording a compound annual growth rate (CAGR) of 3.6%. Key European countries like Spain, Italy, Greece, and Portugal play a pivotal role in ensuring the supply and distribution of olive oil globally, while consumer demand for organic, premium, and health-conscious products continues to increase.

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Market Overview and Key Growth Drivers

The Europe olive oil market has witnessed sustained growth in recent years. At its core, olive oil continues to be valued for its health benefits, including its heart-healthy monounsaturated fats, antioxidants, and anti-inflammatory properties. This has fueled its demand, particularly in Mediterranean regions where olive oil is central to daily culinary practices. The market benefits from growing health awareness among consumers, and an increasing number of people are replacing traditional cooking oils with olive oil. Furthermore, the increasing popularity of Mediterranean diets, which are recognized for their cardiovascular benefits, is playing a crucial role in driving market demand.

Another key growth driver is the demand for premium olive oil, particularly extra virgin olive oil (EVOO). This product continues to dominate the European market due to its superior nutritional profile and certification labels such as PDO (Protected Designation of Origin) and PGI (Protected Geographical Indication), which reinforce its authenticity and quality. As the market matures, consumer preferences are shifting toward high-quality, sustainably sourced, and organic olive oils, fostering innovation and differentiation among producers. Spain, Italy, Greece, and Portugal remain the leading geographical regions for the market, owing to their well-established agricultural infrastructure, favorable climates, and historical expertise in olive cultivation.

Key Highlights from the Report

➤ The Europe olive oil market is projected to reach USD 15.7 billion by 2032, growing at a CAGR of 3.6%.
➤ Extra virgin olive oil remains the leading product segment, owing to its superior health benefits.
➤ The increasing popularity of Mediterranean diets is propelling olive oil consumption across Europe.
➤ Spain, Italy, Greece, and Portugal are the key producers driving the market growth in Europe.
➤ Growing demand for organic and eco-friendly packaging solutions is shaping product differentiation.
➤ Olive oil's versatile applications in skincare and personal care products are opening new market opportunities.

Market Segmentation

Product Type Segmentation

The Europe olive oil market can be segmented based on product type, including extra virgin olive oil (EVOO), virgin olive oil, and pomace olive oil. Among these, extra virgin olive oil continues to dominate the market due to its exceptional health benefits, superior taste, and rich nutritional profile. EVOO is widely recognized for its high concentration of antioxidants, vitamins, and monounsaturated fats, all of which contribute to its heart-healthy properties. As consumers become more health-conscious, the demand for EVOO is increasing, with higher consumption rates across households, food service sectors, and restaurants. Virgin olive oil, while also a healthy alternative, is less popular due to its lower quality and fewer health benefits when compared to EVOO. Pomace olive oil, typically used in food processing, is the least premium segment and holds a smaller share in the overall market.

End-Use Segmentation

In terms of end-use, the Europe olive oil market is segmented into food processing, foodservice, household/retail, cosmetics, and personal care. The household/retail segment holds the largest share, driven by increased consumer interest in healthy cooking oils. Olive oil's association with the Mediterranean diet and its perceived health benefits have made it a staple in European kitchens. The foodservice sector is also significant, particularly with the growing number of restaurants and cafes embracing Mediterranean cuisine. Additionally, olive oil is increasingly used in cosmetics and personal care products, owing to its moisturizing and anti-aging properties. The rising demand for clean-label beauty products is expanding the use of olive oil in skincare, haircare, and toiletry items.

Regional Insights

Southern Europe: Spain, Italy, Greece, and Portugal

Southern Europe remains the powerhouse of the olive oil market. Spain, the largest producer and exporter of olive oil globally, accounts for over 40% of the world's olive oil supply. Its dominance is supported by large-scale olive plantations, a rich tradition of olive oil production, and the government's efforts to promote quality products through PDO and PGI certifications. Similarly, Italy is renowned for its artisanal olive oil, and small-scale producers continue to thrive by emphasizing quality and traceability. Greece, another major player, focuses on high-quality olive oils, particularly extra virgin varieties. Portugal is emerging as a key competitor, with a growing demand for premium olive oils in both local and international markets.

Northern and Eastern Europe

While Southern Europe remains the market leader, the demand for olive oil is rising in Northern and Eastern European countries as well. The increased awareness of health benefits and the adoption of Mediterranean diets are driving consumption in countries like Germany, the UK, and France. These regions are witnessing a shift toward more sustainable and health-conscious food products, with olive oil positioned as the oil of choice for heart-healthy cooking. Additionally, the demand for organic olive oil and eco-friendly packaging is growing, aligning with broader sustainability trends in these regions.

Market Drivers

The primary driver of the Europe olive oil market is the rising consumer shift toward heart-healthy edible oils. Olive oil, especially extra virgin varieties, is well-known for its monounsaturated fats, which help reduce the risk of cardiovascular diseases. As the prevalence of lifestyle-related diseases such as obesity, hypertension, and heart disease increases, consumers are more conscious of their dietary choices. Olive oil is also widely recognized as a versatile cooking medium, suitable for frying, baking, and dressing, contributing to its increasing popularity in households and food service establishments across Europe.

Additionally, the growing awareness of the environmental impact of food production is driving demand for sustainable and eco-friendly packaging. As consumers become more environmentally conscious, they are seeking out brands that prioritize sustainability in their production processes and packaging choices. This shift is encouraging olive oil producers to invest in recyclable, biodegradable, and minimalist packaging designs that align with global sustainability trends.

Market Restraints

Despite its promising growth, the Europe olive oil market faces several challenges. One significant restraint is the volatility of raw material costs, primarily driven by climate variability. Olive cultivation is highly sensitive to adverse weather conditions, including droughts, frosts, and erratic rainfall. These factors can reduce olive yields, which in turn affects the overall supply of olive oil. The key olive oil-producing countries in Europe, such as Spain, Italy, and Greece, have experienced fluctuations in production due to these climate challenges, leading to price increases.

Geopolitical tensions and global supply chain disruptions also contribute to rising production costs. In 2024, several European countries saw sharp increases in olive oil prices, including Portugal (+69%), Greece (+67%), and Spain (+63%), highlighting the economic pressures faced by both consumers and producers in the region. These price hikes can drive consumers toward cheaper alternatives, negatively impacting the market for high-quality olive oils.

Market Opportunities

The Europe olive oil market is poised for significant growth through eco-friendly and aesthetic packaging solutions, which are increasingly appealing to sustainability-conscious consumers. Companies that adopt biodegradable and recyclable packaging can differentiate themselves in the competitive market and build loyalty among environmentally aware buyers. Additionally, expanding the use of olive oil in the cosmetics and personal care industries presents a substantial opportunity. Olive oil's natural skin-nourishing benefits are increasingly recognized in the beauty industry, making it a sought-after ingredient for moisturizers, cleansers, and hair care products.

Another opportunity lies in the growing trend of premium olive oil consumption. As consumers seek healthier, high-quality products, there is an increasing demand for organic and cold-pressed olive oils. These premium products cater to a growing segment of health-conscious consumers who are willing to pay a premium for authenticity, quality, and traceability.

Frequently Asked Questions (FAQs)

➤ How Big is the Europe Olive Oil Market?
➤ Who are the Key Players in the Europe Olive Oil Market?
➤ What is the Projected Growth Rate of the Europe Olive Oil Market?
➤ What is the Market Forecast for the Europe Olive Oil Market by 2032?
➤ Which Region is Estimated to Dominate the Europe Olive Oil Market Through the Forecast Period?

Company Insights

✦ Cargill, Incorporated
✦ Bunge Global
✦ Deoleo
✦ Sovena Group
✦ Gallo Worldwide (Victor Guedes S.A.)
✦ Salov S.p.A.
✦ Oro del desierto
✦ Sucesores de Hermanos López SA
✦ Frantoio Romano
✦ Knolive Oils

Conclusion

The Europe olive oil market is poised for continued growth through 2032, driven by consumer demand for healthier food options, sustainability trends, and innovations in packaging. While challenges such as volatile raw material costs and climate risks persist, opportunities in eco-friendly packaging and the cosmetics sector offer exciting avenues for growth. The market's future looks promising, with key European countries like Spain, Italy, and Greece continuing to lead production while responding to evolving consumer

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