Olive oil and fractions market in Portugal

Earlier Report Observations

From 2018 to 2020, the Portuguese olive oil market volume grew from 59.2 thousand tons to 101.3 thousand tons. This expansion was fueled by a continuous increase in olive grove area, which reached 360 thousand hectares, and the entry of new producers such as Herdade do Esporão. Investments in super-intensive and mechanized groves, along with modern water management and agricultural technology, began boosting productivity from 2019. The industrial capacity of major companies like Santa Vitória was also expanded in 2020, supporting higher processing volumes.

The market contracted sharply in 2021 to 60.2 thousand tons due to a drop in production and rising exports. It recovered to 69.0 thousand tons in 2022, driven by new intensive olive groves that came into production, lifting national output to 187.1 thousand tons. That same year, the implementation of EU Delegated Regulation 2022/2104 introduced stricter marketing and labeling rules, reinforcing quality controls and mandatory parameters for authenticity.

In 2023, market volume declined to 58.2 thousand tons as production fell and imports remained subdued. Throughout the period, the industry continued to invest in technology and mechanized production models, while adverse global weather conditions contributed to high prices and supply pressures. The market stayed dynamic with ongoing entry of new players and a strong focus on regional quality certifications such as Azeite do Alentejo.

Production olive oil and fractions in Portugal

In value, 2018-2021, M $ US

In 2021, Portugal's olive oil and fractions production was valued at 402.7 million US dollars, marking a 16.8% decrease compared to 2020. Over the period from 2018 to 2021, production declined by 18.5%, which translates to an annualized rate of 6.6%. The largest increase occurred in 2020, with a rise of 10.1%.

Annual dynamics of production in Portugal in value, 2018-2021, M $ US

In kind, 2018-2021, K t

Following a two-year upward trend, Portugal's olive oil and fractions production experienced a decline. In 2021, the country produced 142.3 thousand tonnes, representing a 10.1% decrease from the previous year. From 2018 to 2021, overall production grew by 21.3%, equivalent to an annualized rate of 6.7%. The peak was reached in 2020 at 158.3 thousand tonnes, with the largest increase of 17.8% also recorded that year.

Annual dynamics of production in Portugal in kind, 2018-2021, K t

Exports olive oil and fractions from Portugal

Exports in kind, K t

Portugal's olive oil and fractions exports have risen for the third consecutive year. In 2021, exports reached 216.3 thousand tonnes, showing a modest 7.5% improvement compared to the previous year. Between 2018 and 2021, exports increased by 23.8%, equating to an annualized growth rate of 7.4%.

Annual dynamics of product's exports from Portugal in kind, 2018-2021, K t

From 2018 to 2021, Spain, Brazil, and Italy were the leading destinations for Portugal's olive oil and fractions exports in volume terms. Spain accounted for 40.8% of exports, Brazil for 31.9%, and Italy for 17.6%. Together, these three countries represented 90.4% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Portugal in kind, 2018-2021

Exports in value, M $ US

Olive oil and fractions exports from Portugal have increased for the second year in a row. In 2021, exports amounted to 829.8 million US dollars, which is 28.3% higher than in 2020. Over the 2018-2021 period, exports grew by 9.8%, with a compound annual growth rate of 3.2%. The lowest value was recorded in 2019 at 612.5 million US dollars, with the largest decline of 19.0% also occurring that year.

Annual dynamics of product's exports from Portugal in value, 2018-2021, M $ US

Between 2018 and 2021, the top destinations for Portugal's olive oil and fractions exports in value terms were Brazil, Spain, and Italy. Brazil accounted for 39.6% of export value, Spain for 33.3%, and Italy for 16.3%. Collectively, these three markets made up 89.2% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Portugal in value, 2018-2021

Imports olive oil and fractions to Portugal

Imports in kind, K t

After two years of growth, olive oil and fractions imports into Portugal declined. In 2021, imports were recorded at 134.2 thousand tonnes, reflecting a moderate 7.0% year-on-year drop. From 2018 to 2021, imports increased by 15.1%, which corresponds to an annualized rate of 4.8%. The highest volume was in 2020 at 144.3 thousand tonnes, with the largest increase of 18.5% also seen that year.

Annual dynamics of product's imports to Portugal in kind, 2018-2021, K t

During the 2018-2021 period, olive oil and fractions imports to Portugal were primarily sourced from Spain, which accounted for 98.1% of total imports in volume terms.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Portugal in kind, 2018-2021

Imports in value, M $ US

Foreign supplies of olive oil and fractions to Portugal have increased for the second consecutive year. In 2021, imports reached 434.9 million US dollars, corresponding to a 27.5% uptick from 2020. Over the 2018-2021 period, imports rose by 2.2%, with a compound annual growth rate of 0.7%. The minimum value was in 2019 at 325.7 million US dollars, with the largest decline of 23.4% also recorded that year.

Annual dynamics of product's imports to Portugal in value, 2018-2021, M $ US

From 2018 to 2021, Spain was overwhelmingly the main source for olive oil and fractions imports into Portugal in value terms, accounting for 97.9% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Portugal in value, 2018-2021