Virgin olive oil and fractions market in Europe

Earlier Report Observations

The European market for virgin olive oil and fractions showed considerable volatility between 2018 and 2023. Market volume peaked at 3 390 K t in 2018, then fell sharply to 2 390 K t in 2019. A partial recovery to 2 982 K t occurred in 2020, followed by another contraction to 2 415 K t in 2021 and a slight rise to 2 697 K t in 2022, before a significant drop to 1 900 K t in 2023. Climatic conditions in the Mediterranean, including droughts and extreme weather events, were a persistent influence on olive harvests and oil availability throughout the period.

In 2021, a major Italian producer, Pietro Coricelli, partnered with IBM Food Trust to implement blockchain technology, enhancing traceability and transparency in the extra virgin olive oil supply chain. By 2023, a severe climate crisis and drought in the region significantly reduced production, while rising production costs and a shift in foreign demand toward quality transformed olive oil into a more selective good, contributing to the market's contraction.

Consumer preferences steadily shifted toward organic and natural products, with growing importance placed on quality certifications like DOP and IGP. This trend supported premium market segments and emphasized traceability, reinforcing the market's structural move toward higher-value offerings over the years.

Production virgin olive oil and fractions in Europe

In kind, 2017-2020, K t

Top producers of virgin olive oil and fractions, 2017-2020

World map of production of virgin olive oil and fractions, 2017-2020

The market exhibited volatility during the observed period. Production volumes varied significantly, with a 1.9-fold difference between the low in 2017 and the high in 2018. In 2020, Europe produced 2 985 K t of virgin olive oil and fractions, representing a dramatic 26.1% increase compared to the previous year. The peak production was recorded in 2018 at 3 482 K t. The largest decline occurred in 2019, dropping by 32.0%, while the largest increase was in 2018, surging by 85.7%.

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

In value, 2017-2020, M $ US

Virgin olive oil and fractions production in Europe declined for the second consecutive year. In 2020, the output was valued at 17 323 M $ US, marking a 1.5% decrease from the previous year. Between 2017 and 2020, production increased by 5.4%, which translates to an annualized growth rate of 1.8%. The highest value was recorded in 2018 at 27 005 M $ US. The largest decline occurred in 2019, falling by 34.9%, while the largest increase was in 2018, rising by 64.4%.

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

Exports virgin olive oil and fractions from Europe

Exports in kind, K t

In 2020, Europe's export volume of virgin olive oil and fractions reached 892 K t, showing a steep 33.1% increase compared to the prior year. Over the period from 2017 to 2020, exports grew by 37.9%, with a compound annual growth rate (CAGR) of 11.3%. The largest decline was recorded in 2019, dropping by 6.7%.

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

From 2017 to 2020, exports of virgin olive oil and fractions from Europe were not heavily concentrated on a few key markets. The United States accounted for 12.6% of exports in kind, Brazil for 4.7%, and Japan for 3.1%. Together, these three countries represented only 20.4% of total export flows, indicating a diversified market structure.

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

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

Exports in value, M $ US

After a two-year decline, virgin olive oil and fractions exports from Europe increased in 2020. Exports amounted to 5 175 M $ US, showing a 4.0% improvement compared to 2019. Between 2017 and 2020, exports decreased by 8.6%, equating to an annualized decline of 3.0%. The lowest value was recorded in 2019 at 4 978 M $ US, with the largest decline occurring that year at 10.6%.

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

From 2017 to 2020, the United States, Brazil, and Japan were the largest buyers of virgin olive oil and fractions from Europe in value terms, accounting for 15.2%, 5.7%, and 3.9% of exports, respectively. However, their combined contribution was limited to 24.7% of total export value, reflecting a diversified country structure.

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

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

Imports virgin olive oil and fractions to Europe

Imports in kind, K t

Virgin olive oil and fractions imports into Europe increased for the second consecutive year. In 2020, imports stood at 889 K t, marking a dramatic 28.5% uptick compared to the previous year. Over the period from 2017 to 2020, imports grew by 35.1%, with a compound annual growth rate (CAGR) of 10.6%. The lowest import volume was recorded in 2018 at 625 K t, with the largest decline occurring that year at 4.9%.

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

From 2017 to 2020, Tunisia, Syria, and Morocco were the principal sources for imports in kind of virgin olive oil and fractions into Europe. Tunisia accounted for 12.1% of imports, Syria for 0.9%, and Morocco for 0.8%. Together, these three countries represented 13.7% of total import flows.

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

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

Imports in value, M $ US

In 2020, Europe imported 3 879 M $ US of virgin olive oil and fractions, reflecting a modest 10.0% increase compared to 2019. Over the period from 2017 to 2020, imports decreased by 7.1%, with a compound annual decline rate of 2.4%. The lowest value was recorded in 2019 at 3 526 M $ US, while the peak was in 2018 at 4 205 M $ US. The largest decline occurred in 2019, dropping by 16.1%.

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

From 2017 to 2020, three principal markets—Tunisia, Syria, and Morocco—together accounted for 11.4% of total imports in value terms of virgin olive oil and fractions into Europe.

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

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