Olive oil and fractions market in Italy

Earlier Report Observations

The market value for olive oil in Italy showed considerable movement between 2018 and 2024. After starting at $3.1 billion in 2018, it fell to $2.5 billion in 2019 before recovering to $2.7 billion in 2020. A further dip to $2.6 billion occurred in 2021, but a strong upward trend followed, with the market reaching $3.4 billion in 2022 and peaking at $3.8 billion in 2023. The key driver from 2021 onward was a sustained increase in the average price of extra virgin olive oil, which rose from €4-5 per kg to €9-11 per kg by 2024. This price surge was propelled by European Union agricultural policies, including subsidies for new plantings and sustainability regulations, coupled with environmental factors like climate change.

In 2024, the market value stabilized at $3.8 billion despite an estimated drop in Italian production to 250-300 thousand tonnes, caused by adverse climatic conditions and natural yield alternation. The high price environment, which began in 2021, continued to support the market's monetary value. Furthermore, Italian exports surged by 42.6% in volume, reinforcing the country's role as a leading global exporter. The market was also influenced by broader global dynamics, including a significant increase in worldwide production and international trade factors such as U.S. tariffs and currency fluctuations.

Production olive oil and fractions in Italy

In value, 2017-2020, M $ US

In Italy, the production value of olive oil and fractions reached 2 746 million US dollars in 2020, marking a 16.2% increase from the previous year. Over the period from 2017 to 2020, production grew by 16.2%, which translates to an annualized rate of 5.1%. The highest value was recorded in 2018 at 2 899 million US dollars. In 2019, production experienced its largest decline of 18.5%, while the largest increase of 22.6% occurred in 2018.

Annual dynamics of production in Italy in value, 2017-2020, M $ US

In kind, 2017-2020, K t

The market displayed volatility during the observed period. Production volume in Italy reached 1 488 thousand tonnes in 2020, showing a significant year-over-year increase of 154.4%. The peak volume was recorded in 2018 at 2 012 thousand tonnes. In 2019, production saw its largest decline of 70.9%, whereas the largest increase of 351.0% was observed in 2018. The fluctuation between 2017 and 2018 resulted in a peak-to-trough amplitude of 4.5 times.

Annual dynamics of production in Italy in kind, 2017-2020, K t

Exports olive oil and fractions from Italy

Exports in kind, K t

Italy's export volume of olive oil and fractions increased for the third consecutive year. In 2020, exports amounted to 374.3 thousand tonnes, representing a solid 23.8% rise compared to the previous year. From 2017 to 2020, exports grew by 27.3%, equating to an annualized rate of 8.4%.

Annual dynamics of product's exports from Italy in kind, 2017-2020, K t

From 2017 to 2020, the United States, Germany, and France were the main markets for Italy's olive oil and fractions exports in kind. The United States accounted for 31.6% of exports, Germany for 12.0%, and France for 8.6%. Together, these three countries represented 52.1% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Italy in kind, 2017-2020

Exports in value, M $ US

After a two-year decrease, Italy's cross-border shipments of olive oil and fractions in value terms increased. In 2020, exports reached 1 618 million US dollars, which is 9.7% higher than the previous year. Over the period from 2017 to 2020, exports decreased by 3%, with a compound annual growth rate of -1.0%. The lowest value was recorded in 2019 at 1 476 million US dollars, which also saw the largest decline of 11.3%.

Annual dynamics of product's exports from Italy in value, 2017-2020, M $ US

From 2017 to 2020, the largest buyers of olive oil and fractions from Italy in value terms were the United States, Germany, and France. The United States accounted for 32.2% of exports, Germany for 12.7%, and France for 7.3%. Collectively, these three markets formed 52.2% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Italy in value, 2017-2020

Imports olive oil and fractions to Italy

Imports in kind, K t

Italy's import volume of olive oil and fractions increased for the third consecutive year. In 2020, imports came to 616.4 thousand tonnes, which is 8.1% above the previous year. Between 2017 and 2020, imports rose by 22.7%, equating to an annualized rate of 7.1%.

Annual dynamics of product's imports to Italy in kind, 2017-2020, K t

Throughout 2017 to 2020, the country structure of Italy's imports in kind was primarily shaped by Spain and Greece. Together, these two countries accounted for 83.7% of total import flows, with other markets forming a long tail.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Italy in kind, 2017-2020

Imports in value, M $ US

Italy's cross-border shipments of olive oil and fractions in value terms declined for the third consecutive year. In 2020, imports totaled 1 618 million US dollars, showing a slight drop of 2.3% compared to 2019. Over the period from 2017 to 2020, imports decreased by 28%, which translates to an annualized rate of 10.4%.

Annual dynamics of product's imports to Italy in value, 2017-2020, M $ US

From 2017 to 2020, Spain and Greece clearly dominated Italy's imports of olive oil and fractions in value terms. Together, they accounted for 83.9% of total import flows, while other countries held much smaller shares.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Italy in value, 2017-2020