Published on : Feb 25, 2016
The market for olive oil will rise at a moderate rate owing to the increasing end-use segments. The factors such as the robust economic growth globally, rising influence of western lifestyle, and the increasing health benefits of olive oil are amongst the top factors boosting the global olive oil market.
The key factors which need to kept in mind while planning to grow as well as sustain large, medium, and small olive oil enterprises have been elaborated as under and these key trends will greatly impact the future of olive oil production.
- Rising Expansion in Production and Export: The industry of olive oil is majorly controlled as well as concentrated by the Mediterranean countries. In the past few years, the production expansion was passed to countries such as Chile, Australia, the U.S., India, and China. However, the production amongst these countries is still less than 2 percent. The countries producing olive oil from a long time now such as Spain have proliferated their production base in a number of neighboring countries including Morocco and Portugal and are also establishing joint ventures in India, China, and South America. Globally, the increasing export and production of olive oil enterprises has broadened the gap amongst conglomerates and small producers.
- Rising Competition from Rivals such as Vegetable Oils: The prime characteristic of extra virgin olive oil which makes it quite vulnerable in its promotion is its smoke point. The high quality extra virgin olive oil comprises a smoke point of approximately 405ºF. On the other hand, refined olive oil has a greater smoke point of approximately 465ºF. This allows the segment of refined olive oil to compete with vegetable oils which have even higher smoke points.
- Rise in Online Sales: The sale of olive oil will rise and consumers will be able to scan QR codes and barcode via their smartphones for determining the health profile, quality, comparative value, and authenticity of extra virgin olive oil.
Hence, the market for olive oil will witness a number of dynamics. The major olive oil consumers include the pharmaceutical industry, food industry, and the beauty and cosmetics industry. These industries are themselves propelling and hence will impact the global olive oil market positively.