Virgin olive oil and fractions market in Israel

Earlier Report Observations

Between 2018 and 2020, the Israeli virgin olive oil market volume first grew to 26 248 t in 2019 before a slight contraction. The initial expansion was supported by the introduction of duty-free import quotas, which reached 1 700 t in 2018 and 1 850 t in 2019, increasing supply and competition. Concurrently, stricter quality controls were implemented, including mandatory organoleptic testing based on European standards starting January 2018.

Market volume fell significantly to 14 000 t in 2022, driven by a sharp decline in olive tree planting and widespread orchard uprooting due to economic unprofitability for local growers. A partial recovery to 16 500 t followed in 2023, aided by a global olive oil shortage resulting from droughts and fires in major producing countries like Spain, Italy, and Greece, which elevated prices and incentivized domestic production.

In 2024, the government initiated direct support of approximately 40 million shekels to olive oil growers to bolster local output, while the industry contended with the closure of the Zita production plant and continued challenges related to product adulteration, prompting recalls by the health ministry.

Production virgin olive oil and fractions in Israel

In kind, 2017-2020, t

From 2017 to 2020, Israel ranked 18th globally in terms of virgin olive oil and fractions production volume.

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

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

Following a two-year decline, virgin olive oil and fractions production in Israel increased in 2020. The country produced 16 800 tonnes, marking a 7.0% rise compared to 2019. Over the 2017-2020 period, production decreased by 5.1%, with a compound annual growth rate of 1.7%. The lowest production level was recorded in 2019 at 15 700 tonnes, which saw the largest decline of 6.0%.

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

In value, 2017-2020, K $ US

After a two-year drop, virgin olive oil and fractions production in Israel saw an increase in 2020. The output was valued at 66 508 thousand US dollars, representing a 7.2% gain from the previous year. Between 2017 and 2020, production fell by 30.1%, equating to an annualized rate of 11.2%. The minimum value occurred in 2019 at 62 035 thousand US dollars, which experienced the largest decline of 32.9%.

Annual dynamics of production in Israel in value, 2017-2020, K $ US

Exports virgin olive oil and fractions from Israel

Exports in kind, t

Virgin olive oil and fractions exports from Israel grew for the second consecutive year in 2020. The country exported 191 tonnes, reflecting a 35.1% increase compared to 2019. The lowest export volume was recorded in 2018 at 115 tonnes, which saw the largest decline of 39.4%.

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

From 2017 to 2020, the United States, Canada, and Japan were the primary buyers of virgin olive oil and fractions from Israel. The United States accounted for 38.6% of exports in kind, Canada for 11.4%, and Japan for 10.5%, together comprising 60.4% of total exports in kind.

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

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

Exports in value, K $ US

Following a two-year decrease, Israel's virgin olive oil and fractions exports increased in 2020. The country exported 758 thousand US dollars worth, up by 35.4% from the previous year. Between 2017 and 2020, exports fell by 25.5%, with an annualized rate of 9.3%. The minimum value was recorded in 2019 at 560 thousand US dollars, while the largest decline occurred in 2018 at 37.6%.

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

In the 2017-2020 period, the United States, Canada, and Japan accounted for the largest share of Israel's virgin olive oil and fractions exports in value terms. The United States represented 38.1% of exports, Canada 11.9%, and Japan 10.5%, together making up 60.5% of total export flows.

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

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

Imports virgin olive oil and fractions to Israel

Imports in kind, t

After a two-year increase, Israel's virgin olive oil and fractions import volume declined in 2020. The country imported 8 837 tonnes, which was 17.3% lower than the previous year. Over the 2017-2020 period, imports rose by 58%, with a compound annual growth rate of 16.5%. The highest import volume was recorded in 2019 at 10 689 tonnes, which saw the largest increase of 43.4%.

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

From 2017 to 2020, three main markets—Spain, Turkey, and Italy—together absorbed 83.6% of Israel's total imports in kind of virgin olive oil and fractions.

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

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

Imports in value, K $ US

Following a two-year rise, virgin olive oil and fractions imports to Israel declined in 2020. Imports totaled 33 779 thousand US dollars, showing a 16.7% decrease from a year earlier. Between 2017 and 2020, imports increased by 35.5%, equating to an annualized rate of 10.6%. The maximum value was recorded in 2019 at 40 543 thousand US dollars, while the largest increase occurred in 2018 at 54.2%.

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

In the 2017-2020 period, the leading sources for Israel's virgin olive oil and fractions imports in value terms were Spain, Turkey, and Italy. Spain accounted for 52.7% of imports, Turkey for 15.8%, and Italy for 14.8%, jointly representing 83.3% of total import flows.

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

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