Virgin olive oil and fractions market in Iran

Earlier Report Observations

From 2018 to 2020, the virgin olive oil market volume in Iran grew to 9 592 t in 2019, largely driven by the entry of new producers like Rezvan Safir Salamat and increasing consumer awareness of virgin and extra virgin oil quality. However, in 2020, tighter labeling rules and anti-fraud measures, along with rising production costs, led to a sharp drop in imports, causing the market volume to fall to 8 020 t despite an increase in domestic production.

In 2021, growing demand for olive oil, fueled by heightened health benefit awareness, supported market volume at 8 207 t, but domestic production fell and imports surged to meet consumption. By 2022, exchange rate fluctuations and high costs made imports unprofitable, halting them entirely, which pushed market volume down to 6 914 t even as domestic output rose to become the sole supply source.

By 2023, the market volume stabilized at 6 863 t, reflecting steady domestic production after imports ceased.

Production virgin olive oil and fractions in Iran

In kind, 2017-2020, t

Globally, Iran ranked as the 21st largest producer of virgin olive oil and fractions between 2017 and 2020.

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

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

Iran's production of virgin olive oil and fractions increased for the second year in a row. In 2020, the country produced 6 670 tonnes, marking a 7.6% rise compared to the previous year. However, looking at the broader period from 2017 to 2020, production overall decreased by 20.8%, which translates to an average annual decline of 7.5%. The lowest production level was recorded in 2018 at 5 256 tonnes, when output fell sharply by 37.6%. This was followed by a significant rebound in 2019, with production growing by 17.9%.

Annual dynamics of production in Iran in kind, 2017-2020, t

Exports virgin olive oil and fractions from Iran

Exports in kind, t

After two years of decline, Iran's export volume of virgin olive oil and fractions saw an uptick. In 2020, exports reached 1 tonne, representing a sudden 40.0% increase from 2019. Over the full period from 2017 to 2020, exports decreased by 42.8%, with a compound annual growth rate of -17.0%. The lowest export volume was recorded in 2019 at 1 tonne, when exports dropped by 51.6%.

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

From 2017 to 2020, Iraq, Afghanistan, and Qatar were the primary buyers of Iran's virgin olive oil and fractions in terms of volume. Iraq accounted for 45.3% of exports, Afghanistan for 29.4%, and Qatar for 8.2%. Together, these three countries made up 82.9% of Iran's total exports in kind.

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

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

Exports in value, K $ US

The export market showed an unstable trend during this period. The highest export value was recorded in 2017, while the lowest was in 2019, with a 4.4-fold difference between these years. In 2020, Iran's export value of virgin olive oil and fractions reached 4 000 US dollars, reflecting a substantial 133.4% increase compared to 2019. The minimum value was in 2019 at 2 000 US dollars, when exports declined by 56.9%.

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

In terms of value from 2017 to 2020, Afghanistan, Iraq, and Kuwait were the leading destinations for Iran's exports of virgin olive oil and fractions. Afghanistan represented 36.7% of export value, Iraq 27.8%, and Kuwait 10.0%. Collectively, these three markets accounted for 74.5% of total export flows in value terms.

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

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

Imports virgin olive oil and fractions to Iran

Imports in kind, t

The import market for virgin olive oil and fractions in Iran was volatile during these years. Imports peaked in 2017 and reached their lowest point in 2020, with a 4.5-fold difference between these years. In 2020, imports totaled 1 351 tonnes, showing a steep 60.2% decline year-over-year. The largest increase occurred in 2019, with imports rising by 3.6%.

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

Between 2017 and 2020, Turkey, Syria, and Spain were the main sources of Iran's imports of virgin olive oil and fractions in volume terms. Turkey supplied 38.6% of imports, Syria 36.0%, and Spain 15.3%. Together, these three countries represented 89.9% of total import flows in kind.

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

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

Imports in value, K $ US

Iran's import value of virgin olive oil and fractions declined for the third consecutive year. In 2020, import value totaled 4 021 000 US dollars, indicating a 63.5% drop compared to the previous year. Over the period from 2017 to 2020, imports decreased by 82.8%, which corresponds to an average annual decline of 44.4%.

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

From 2017 to 2020, Turkey, Syria, and Spain dominated Iran's imports of virgin olive oil and fractions in value terms. Turkey accounted for 37.2% of import value, Syria for 36.2%, and Spain for 16.0%. Combined, these three countries made up 89.4% of total import flows in value.

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

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