Olive oils and other oils obtained solely from olives market in Portugal

Earlier Report Observations

From 2018 to 2020, the Portuguese olive oil market volume expanded from 72.5 K t to 128.9 K t, driven by state-backed investments in new irrigated areas like Alqueva and the modernization of olive groves, which boosted productivity. A focus on quality, with over 90% extra virgin olive oil, further supported domestic consumption during this period.

In 2021, market volume dropped sharply to 70.2 K t as exports surged, heavily concentrated in bulk shipments to Spain and Italy, which accounted for 66% of total exports. Subsequently, severe drought in the Mediterranean basin and rising costs from the war in Ukraine cut Portuguese olive production by around 40% in 2022, leading to a more than 60% fall in output and an 11% decline in domestic consumption, squeezing market volume.

By 2024, production recovered to 180 K t, the second-highest on record, aided by super-intensive olive groves and advanced technology, though consumer prices remained elevated due to a poor harvest in Spain. The market continued to be shaped by the EU's new labeling and purity regulations introduced in 2022 and the maintained reduced VAT rate of 6% on olive oil.

Production olive oils and other oils obtained solely from olives in Portugal

In value, 2018-2021, M $ US

In Portugal, the production value of olive oils and other oils obtained solely from olives reached 410.0 million US dollars in 2021. This represents a significant decline of 18.7% compared to the previous year. Looking at the period from 2018 to 2021, production decreased by 23.7%, with an average annual decline of 8.6%. The largest increase occurred in 2020, when production rose by 8.8%.

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

In kind, 2018-2021, K t

After two years of growth, the production of olive oils and other oils obtained solely from olives in Portugal declined. In 2021, Portugal produced 148.9 thousand tonnes of these oils, marking a substantial decrease of 20.8% compared to the previous year. Over the period from 2018 to 2021, production increased by 4.6%, with an average annual growth rate of 1.5%. The highest production volume was recorded in 2020 at 188.0 thousand tonnes, which also saw the largest increase of 18.5%.

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

Exports olive oils and other oils obtained solely from olives from Portugal

Exports in kind, K t

Portugal's exports of olive oils and other oils obtained solely from olives have increased for the second consecutive year. In 2021, exports reached 229.4 thousand tonnes, up by 5.9% from the previous year. Between 2018 and 2021, exports grew by 19.9%, equating to an average annual increase of 6.2%. The lowest export volume was recorded in 2019 at 188.7 thousand tonnes, which also experienced the largest decline of 1.4%. The largest increase occurred in 2020, with exports rising by 14.8%.

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

From 2018 to 2021, the largest buyers of olive oils and other oils obtained solely from olives from Portugal were Spain, Brazil, and Italy. Spain accounted for 44.0% of exports in kind, Brazil for 29.7%, and Italy for 16.5%. Together, these three markets formed 90.2% of Portugal's total exports in kind during this period.

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

Portugal's exports of olive oils and other oils obtained solely from olives have increased in value for the second consecutive year. In 2021, exports amounted to 846.1 million US dollars, up by 27.8% from the previous year. Over the period from 2018 to 2021, exports increased by 7.7%, with an average annual growth rate of 2.5%. The lowest export value was recorded in 2019 at 625.9 million US dollars, which also saw the largest decline of 20.3%.

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

Throughout the period from 2018 to 2021, the three largest markets for Portugal's olive oils and other oils obtained solely from olives in value terms were Brazil, Spain, and Italy. Together, these markets accounted for 89.0% 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 oils and other oils obtained solely from olives to Portugal

Imports in kind, K t

After two years of growth, Portugal's imports of olive oils and other oils obtained solely from olives declined. In 2021, Portugal imported approximately 150.7 thousand tonnes of these oils, down by 4.4% from 2020. Over the period from 2018 to 2021, imports increased by 24.1%, with an average annual growth rate of 7.5%. The highest import volume was recorded in 2020 at 157.6 thousand tonnes, which also experienced the largest increase of 21.0%.

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

From 2018 to 2021, Spain was overwhelmingly dominant as the source of olive oils and other oils obtained solely from olives imported by Portugal, accounting for 98.1% of total imports in kind.

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

Portugal's imports of olive oils and other oils obtained solely from olives have increased in value for the second consecutive year. In 2021, imports totalled 459.9 million US dollars, which is 29.0% higher than the previous year. Over the period from 2018 to 2021, imports increased by 5.2%, with an average annual growth rate of 1.7%. The lowest import value was recorded in 2019 at 335.9 million US dollars, which also saw the largest decline of 23.2%.

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

From 2018 to 2021, the structure of imports in value terms was dominated by a single market: Spain, which held a share of 98.0% 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