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You are interested in the olive oil market. Regardless of the position you hold in your olive oil company. Regardless of whether you are a professional, amateur or simply a lover of olive oil and regardless of what you plan to do with this knowledge, you have come this far because olive oil, in one way or another, interests you and you want to know the market. We are going to correspond to your interest and we are going to tell you five facts about the olive oil market that will catch your attention, without a doubt.
1. Find an established olive oil market
It's true, but keep in mind that there is always some niche to discover, some innovative product to introduce. Now let's continue with what is known, with a market established since the commercialization of olive oil began more than two thousand years ago, when it was transported in clay jars in the holds of the ships. It is obvious that the logistics have changed since then, however the raw material is still excellent.
The lack of training and business commitment, the irregularity of production and, above all, the irregularity of prices, added to competitiveness, are factors that intervene drastically in the olive oil market.
That is the current market, the one that is beginning to change, the market of opportunities, a market in which, according to experts, the percentage of consumption, worldwide, is three percent, which jumps to the view that opens before us a 97 percent market share to conquer other fats.
2. Handle real data on olive oil production worldwide to understand the impact of production management
There are about 14,000 oil mills distributed throughout the world. Oil mills that are located, mainly and in descending order, in Europe, Africa, Asia, America and Oceania. There are 64 olive oil producing countries in the world and each year there is a clear increase in plantations such as Australia, California, Chile, Croatia, Turkey or Tunisia. A fact that is not bad at all and that, far from being demotivated, we can receive as good news, an opportunity since, every time, there is more information in the olive oil market, information that makes the market sponge and causes a increase in the culture of olive oil that will generate a greater demand.
The olive oil market in six words? We all fit here ... if we work well.
3. Know who are the distributors in the olive oil market
And the answer addresses three main actors who are in charge of the large distribution of the olive oil that is produced: cooperatives, large companies and private labels.
More than 70% of the olive oil sold in hypermarkets and supermarkets is private label, and almost the other 30% is from large packaging and distribution companies.
Despite being an atomized market, distributors looking for small producers that work with quality and moderate prices continue to increase. As the consumer increases the culture of extra virgin olive oil, the demand for quality oils increases. Without a doubt, large distribution is the one that sets the rules of the game, however, small and medium distribution is increasingly approaching the producer and small business with more commitment, knowing that it is a value that their customers demand.
4. We have one of the most important and delicate agents in the olive oil market: the consumer
The consumption of olive oil is higher in the producing countries. The culture and custom of consuming olive oil is undoubtedly the Mediterranean basin. Mediterranean gastronomy would not be understood without the consumption of olive oil.
The average annual expenditure of an Italian in olive oil is around 75 euros a year, and he consumes around 8 liters a year. The average expenditure of a Spaniard in olive oil is around 25 euros, and he consumes about 11 liters a year. Greece would be the first consumer per person per year with about 12 liters of olive oil.
Australians and Chinese have great potential for consumption, given that their large olive groves that currently exist are favored by the large extensions of land they have and where the olive grove would adapt well.
5. The new olive oil market of the future, the one that is already being built
That niche of 97% of the fat market that we have yet to conquer is the paradise of opportunities. The consumption of olive oil in the world is on the rise.
This progressive increase is due, among other circumstances, to the spread of the Mediterranean diet and to changes in the cuisine of countries concerned about health such as Japan, Brazil, Russia, the United States, Great Britain or Germany, which are increasingly betting more on healthy foods and diets, they are good markets to export olive oil.
We have the product, one of the healthiest fats in the world, we have quality, now we have to show it, inform and train the entire population, who will be future consumers.
The olive oil sector must be professionalized, and in particular the olive oil marketing must be professionalized. Maintain quality, maintain prices, avoid fraud, have the best suppliers, study the market I am targeting, etc.
We must take advantage of the healthy winds that blow in the right direction and can push up the consumption of olive oil. Let us not forget that our efforts will always go to increase consumer demand and in this way to always improve and increase the offer.
This is a task for the entire sector.