Press release
Olive Oil Market Poised for Expansion with 4.2% CAGR through 2032
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Increasing focus on natural ingredients, plant-based diets, and clean-label products is further strengthening the market outlook. As consumers worldwide become more inclined toward healthier lifestyle choices, olive oil is increasingly replacing conventional edible oils, fueling long-term industry growth.
According to Persistence Market Research, the market for olive oil is expected to expand at a value-based CAGR of 4.2%, recording a rise in revenue from US$ 17.6 Bn to around US$ 23.5 Bn by 2032. This growth trajectory reflects the rising prominence of olive oil as a global wellness product and the expanding role of specialty oils in the F&B sector.
The market's momentum is supported by the increasing availability of high-quality imported olive oils, new product launches in flavored and organic variants, and growing applications in nutraceuticals and cosmetics. As consumers seek products that offer functional benefits in addition to culinary value, olive oil stands out as a preferred choice across regions.
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Key Market Drivers
Growing Focus on Health and Wellness
The global shift toward healthier diets is a primary factor boosting olive oil consumption. Rich in antioxidants, monounsaturated fats, and anti-inflammatory compounds, olive oil is associated with improved heart health and better metabolic function. This has accelerated its use among health-conscious consumers and dieticians.
Increasing Popularity of Mediterranean Diet
The Mediterranean diet, heavily centered around olive oil, continues to gain traction due to its scientifically proven health benefits. Its widespread adoption across North America, Europe, and Asia Pacific is significantly contributing to market expansion.
Rising Demand for Premium and Organic Oils
Consumers are increasingly seeking premium, cold-pressed, extra-virgin, and organic olive oils. These variants offer superior taste, higher purity, and better nutritional value, driving higher spending in the gourmet food category.
Expanding Use in Cosmetics and Personal Care
Olive oil's moisturizing, antioxidant, and skin-soothing properties make it a popular ingredient in skincare, haircare, and herbal cosmetic formulations. This diversification into non-food applications is opening new revenue streams for market players.
Growth of E-Commerce and Modern Retail
The rapid growth of online grocery platforms and modern retail chains has enhanced accessibility to global olive oil brands. Better product visibility, discounts, and availability of premium imported variants are strengthening consumer adoption across emerging markets.
Market Challenges
Despite its positive growth outlook, the olive oil market faces certain constraints:
Price Volatility: Olive oil production depends heavily on climatic conditions, making prices susceptible to fluctuations.
Quality Adulteration Issues: Instances of blending low-quality oils with extra-virgin olive oil pose a threat to consumer trust.
Limited Global Production Concentration: With production concentrated mainly in Mediterranean countries, supply disruptions can impact global availability.
High Cost of Premium Grades: Extra-virgin and organic variants are priced higher than conventional edible oils, which may limit adoption in price-sensitive markets.
Overcoming these challenges will require stronger supply chain transparency, improved quality testing mechanisms, and regional diversification in production.
Market Segmentation Analysis
By Product Type
Extra Virgin Olive Oil: Dominates due to its superior flavor, purity, and health benefits.
Virgin Olive Oil: Gains steady traction for household cooking and everyday use.
Refined & Pure Olive Oil: Popular for large-scale cooking, frying, and foodservice applications.
Pomace Olive Oil: Economically preferred for commercial food preparation.
By Application
Food & Beverages: Largest segment driven by rising usage in households, restaurants, and packaged foods.
Cosmetics & Personal Care: Increasing incorporation in moisturizers, serums, and hair oils.
Pharmaceuticals & Nutraceuticals: Used in herbal medicines, supplements, and therapeutic formulations.
Industrial Applications: Includes soap manufacturing and oleochemicals.
By Distribution Channel
Supermarkets/Hypermarkets
Specialty Stores
Online Retail
Direct Sales
Online retail is expected to witness the fastest growth due to increasing e-commerce penetration and consumer preference for doorstep delivery of premium oils.
Regional Insights
Europe
Europe remains the largest market, supported by strong cultural usage, high production, and strong demand for premium olive oils. Countries such as Spain, Italy, and Greece lead global production as well as consumption.
North America
North America is witnessing rapid growth due to rising awareness of Mediterranean diets, premium culinary trends, and increasing presence of global olive oil brands.
Asia Pacific
Asia Pacific is emerging as a high-growth region, driven by changing dietary habits, urbanization, and rising disposable incomes. Imports are rising sharply in India, China, Japan, and Australia.
Latin America & Middle East
These regions are experiencing growing use in cooking and cosmetics, supported by modern retail expansion and increasing imports of refined and extra-virgin variants.
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Competitive Landscape
The olive oil market is moderately competitive, with global and regional players focusing on product innovation, premium offerings, and supply chain optimization. Key strategies include organic product launches, sustainability initiatives, new packaging formats, and expansion in online retail channels.
Leading companies are emphasizing:
Advanced cold-press extraction technologies
Traceability systems to assure purity
Partnerships with retail chains
Expansion into flavored and infused olive oils
Prominent players in the market include:
Deoleo
Borges International Group
Sovena Group
Gallo Worldwide
Cargill
California Olive Ranch
Pompeian
Colavita
These companies are investing in sustainable farming practices, high-quality processing, and global distribution to strengthen their market position.
Key Trends Shaping the Market
Rising Preference for Clean-Label Products
Growth of Organic Farming and Eco-Friendly Packaging
Introduction of Flavored and Infused Olive Oils
Premiumization in Urban Markets
Integration of Traceability and Quality Certifications
Increasing Use in Gourmet & Fine-Dining Restaurants
Future Outlook
The olive oil market is expected to maintain steady growth, supported by rising health consciousness, premium food trends, and expanding usage across industries. As consumers prioritize wellness, transparency, and natural ingredients, olive oil will continue to gain prominence as a global healthy oil choice.
With revenue projected to rise from US$ 17.6 Bn to around US$ 23.5 Bn by 2032, the market is poised for sustained expansion through product diversification, technological advancements, and increasing penetration in emerging economies.
About Persistence Market Research:
At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.
Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.
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