The olive oil market - United Kingdom

The global olive oil market, dominated by European countries with Spain leading production, has seen a fluctuation in consumption trends and market dynamics since 2020. The International Olive Council estimated 3.3 million tons of world consumption for the 2019-2020 season, contributing to an annual turnover of approximately 8.28 billion USD. The UK market, entirely reliant on imports, primarily from the EU, has a market value of around 170 million pounds for 2019-2020, based on a consumption of 72,300 tons. Despite concerns regarding the long-term effects of COVID-19, with over a third of olive oil workers expressing severe unease, the pandemic's impact has notably hit olive growers and producers. Brexit has complicated imports with increased administrative tasks and delays, leading to a 35% drop in Spanish olive oil imports in early 2021, and a 13% decrease in Italian extra virgin olive oil imports. In the UK, the consumption of olive oil is unevenly distributed across regions, with London consuming considerably more. Demand trends indicate a shift towards virgin olive oil and growing interest in premium oils. The British consumer prioritizes health benefits and habits over taste and origin, leading to a diverse consumer profile ranging from regular, health-conscious consumers to occasional users and those with limited product knowledge. The online sales of retail goods, including olive oil, spiked significantly during the health crisis, marking an enduring change in the purchasing patterns of the UK market. While the olive oil market only occupies a marginal share in the world consumption of fats, it has steadily increased over the last few decades, with the UK demonstrating a unique openness to changing consumption habits and a dynamic shift towards alternative vegetable oils and fats..#### Current Trends in the UK Olive Oil Market The UK olive oil market has displayed some notable shifts in consumption patterns with a pronounced inclination toward the adoption of healthier options such as olive oil. A survey conducted by Mercacei has indicated a slow but steady transition from traditional fats like butter to olive oil, underpinned by a burgeoning awareness around the health benefits of extra virgin olive oil amongst British consumers. In an international context, Europe, particularly the Mediterranean countries, dominates both production and consumption of olive oil. However, significant spotlight falls on the UK market, which has shown a marked increase in consumption despite the fact that all olive oil in the UK is imported. From 2011 to 2019, there's been roughly a 22% rise in olive oil consumption, reaching between 70,000 and 75,000 tons during the 2019-20 period. When it comes to the UK's olive oil source, more than 80% of imports are from the European Union, predominantly Spain and Italy, which provide 59% and 29.2% of imports respectively. The UK's interest in olive oil has not been uniform across the country; London leads in consumption with other regions like Northern Ireland and the North East of England trailing significantly, with consumption levels up to 10 times less. The COVID-19 pandemic has not spared the olive oil market, with many producers across major olive-producing regions expressing concerns regarding the long-term impacts of the virus. These fears have materialized in financial losses, with the sector in Italy alone facing damages worth between 1.5 billion and 2.5 billion euros due to ramifications such as the closure of restaurants and a dip in tourism. Despite these challenges, demand within the UK has showcased certain resilience, particularly in comparison to other European countries that import the majority of their olive oil. The UK's consumption has been on a continuous upward trend, with a significant increase of over 30% from 2018 to 2020, a period wherein countries like France and Germany didn't experience such growth. Consumer preferences and behavior have also evolved, with particular emphasis on the nutritional and health benefits of the product outweighing factors like taste or recommendations from sales personnel. The British market is segmented with consumers varying from those who regularly consume premium oils to occasional consumers, and those with limited interest and knowledge of olive oil. Brexit has notably impacted the UK imports, with the administrative complexities and delays at customs resulting in a drop in olive imports from the leading European suppliers. This has opened opportunities.### Key Players Shaping the Global Olive Oil Landscape The olive oil market, integral to the Mediterranean diet and increasingly adopted worldwide for its health benefits, is characterized by the presence of several prominent firms that have a substantial impact on production, distribution, and trends across the globe. **Deoleo** is one of the giants in the industry. As a Spanish company, Deoleo has a broad portfolio that includes many well-known brands such as Bertolli and Carapelli. Their presence is global, and they play a significant role in setting trends and standards within the market. Their strength lies in their vast distribution network and brand recognition. **Grupp Salov** is an Italian company that stands strong in the market. Known for their Filippo Berio brand, which is synonymous with quality among olive oil consumers, Grupp Salov has managed to position itself as a staple in many households around the world. The Filippo Berio brand is often associated with heritage and tradition in olive oil production. The **Borges International Group** brings another Spanish heavyweight into the fold. With a presence in numerous countries and a diverse product range, Borges ensures that a variety of olive oil options are available to consumers, catering to different tastes and price points. **Sovena** is a group that manages brands across different segments, catering to both the retail and food service sectors. This Portuguese company has a global footprint and has diversified its product offerings beyond just olive oil, which allows them to have a unique position in the market. **Ybarra** is a Spanish company that is known not only for its olive oils but also for other food products, indicating a strategic diversification that many olive oil companies have taken to ensure a stable position in the market against the backdrop of fluctuating olive oil prices and varying harvest yields. **Del Monte Food** is a North American player with a global presence that has ventured successfully into the olive oil market. As a brand known primarily for its canned fruits and vegetables, Del Monte's presence in the olive oil sector showcases the potential for established food brands to venture into and capitalize on the olive oil trend. Lastly, **Cargill**, a global agricultural commodities and processing giant, has a division that deals in a variety of oils, including olive oil. With its massive infrastructure and capabilities in food production and distribution, Cargill's presence strengthens the market's robustness and ensures a steady supply chain. Each of these companies, with their unique strengths and diverse strategies, plays a crucial role in providing stability, variety,

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• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 26/04/2022

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Summary and extracts

List of charts

• Main olive oil producing countries (forecast)
• Estimated olive oil consumption
• Olive oil consumption
• British consumption of olive oil
• Evolution of British olive oil exports and imports
• Major beneficiaries of British olive oil imports
• Poll: "On a scale of 0 to 10, how concerned are you about the long-term effects of the coronavirus?"
• Distribution of British olive oil imports
• Olive oil consumption in the European importing countries
• Analysis of factors related to British olive oil consumption
• Olive oil attributes related to British consumption
• Olive oil price trends
• Extra virgin olive oil prices
• Consumer price inflation for oils and fats
• UK consumption of vegetable oils and fats
• Evolution of the British consumption of vegetable oils and fats
• Uses of vegetable oils and fats
• Weekly expenditure per person on fats
• UK food market share
• Evolution of the online share of UK retail sales

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