The olive oil market - Italy

Olive oil is a natural oil which is obtained after pressing olives. Being the main component of the Mediterranean diet, and thanks to its health properties, olive oil is a food product with a promising future. Indeed, the related market represents one of the fastest growing compartments of the global food industry, and it can be segmented based on type (virgin, extra-virgin, and pomace), application (food and beverage, pharmaceuticals, cosmetics), and geography. The global olive oil market size was $13.03 billion in 2019, and it is projected to reach $ 16.64 by 2027, exhibiting a CAGR of 3.2% across the period. In Italy, the market of olive oil has witnessed a critical situation during the pandemic. On one hand, with the lock down going on, Italian families spent most of their time at home cooking and preparing traditional dishes, including sauces, soups, and biscuits. Naturally, olive oil is the basis for their preparation and, taking also into consideration the many positive effects it may have on human beings, its demand upsurged. On the other hand, the regions of southern Italy, where olive oil is mostly produced, have not been capable of meeting average production standards (around 400,000 tons per year). For this reason, in 2020 Italy lost a position in the ranking of olive oil producers in favor of Greece, with Spain maintaining the lead.   However, the value of exports has increased during the year, experiencing a +15.6% in extra Eu countries and a +24.7% in European countries, and reducing the amount of Italy’s oil trade deficit. This represents a positive trend in the production of olive oil in Italy, whose market is expected to grow steadily until 2026. The top three producers in Italy are Colavita S.p.a., located in the wider province of Campobasso and with a subsidiary in the USA, Filippo Berio, specialized in the production of virgin and extra-virgin oil, and Frantoio Franci in Grosseto.