The olive oil market - France (2024)

1.2 The world market is dominated by the Mediterranean

World olive oil production peaked in ****-**** at *.** million tonnes, but has since fallen to *.* million tonnes in ****-****.

World olive oil production World, ****-****, in million tons Source: ****

For the ****-**** campaign,Spain stands out with a production of ***,*** tonnes, well above that of other countries, confirming its role as world leader in the sector.

Italy follows with a production of ***,*** tonnes, while Turkey, with ***,*** tonnes, completes the podium. Greece is in fourth place with ***,*** tonnes, despite a significant drop in global forecasts. Tunisia (***) also posted significant volumes, confirming their importance in Mediterranean production.

Algeria and Morocco produce **,*** and ***,*** tonnes respectively, more modest volumes compared to other Mediterranean countries, but still significant for the region. This graph highlights the concentration of olive oil production in the Mediterranean, with Spain dominating, producing almost three times as much as Italy, its closest competitor.

Main olive oil producing and consuming countries World, ****, thousands of tons Source: ****

The ****/**** olive-growing season looks set to be marked by a fall in world production for the second year running, with an estimated overall volume below the average of the previous four seasons. The main producing countries are expected to reach *.* million tonnes, down *% on last year.

However, ...

1.3 French olives: a market for consumers rather than producers

Consumption largely imported

Olive oil imports and exports France, ****, millions of euros Source: ****

France's olive oil trade balance is largely in deficit. Olive oil imports into France in **** are clearly dominant compared to exports, with an order of magnitude approximately * times higher in value (***). This reflects a strong dependence on imports to satisfy domestic demand.

The ****/**** olive oil production campaign in France was marked by a significant drop, reaching only *,*** tons (***) saw their production fall by **% and **% respectively.

At the same time, French olive oil consumption fell by **% in ****, to **,*** tonnes, under the effect of soaring prices (***), substitute products are emerging, making a return to pre-inflation consumption levels uncertain.

Olive oil production in France France, ****-****, in tons Source: ****

Main olive oil suppliers France, ****, in Source: ****

In terms of imports, France is highly dependent on a small number of suppliers. Spain is the leading supplier, accounting for **% of our imports. Italy is second with just over a quarter of our imports. Tunisia completes the podium with *.*% of our imports.

Main destinations for olive oil exports France, ****, in Source: ****

The destinations of French olive oil exports are more diversified: Spain is the leading export partner, followed by Italy and Belgium.

French market ...

2.1 French consumer profile

Geography

The following graph shows the respective weight of households consuming olive oil in supermarkets, by size and type of town:

Weight in number of households buying olive oil in France France, ****, in Source: ****

Geography appears to play a relatively important role in olive oil consumption. Indeed, this product is apparently much more popular in rural communities than in densely populated metropolises.

The following data are provided by France Olive and concern the year ****.

Age and CSP

Younger people seem less inclined to consume olive oil, since the under-**s account for only **.*% of consumption.

Olive oil is also a particularly popular product among the upper-income bracket, who account for **.*% of consumers. The over-representation of this category may be due to the relatively high price of olive oil compared to other types of fat, to which less affluent categories turn.

Consumption

Consumption is highest in *-* person households (***).

The average household purchased *.* liters of olive oil in ****, for an average amount of €**.*.

Share of French households buying olive oil France, ****, in Source: ****

**% of French households consumed olive oil in ****.

In ****, soaring olive oil prices led to a significant drop in consumption in France, which stood at **,*** tonnes, down **% on the ...

2.2 Organic olive oil on the rise

Some producers offer lightened or organic olive oil ranges. The organic olive oil sector is booming. Tasting olive oils in the same way as wine is becoming increasingly popular. Oliviers & Co has positioned itself at the top end of this organic olive oil trend, distributing over twenty harvests a year and boasting a choice of over a thousand batches of oil.

The boom in organic oil can be observed worldwide, as evidenced by the growth in certified organic or in-conversion acreage.

Growth in certified or in-conversion acreage worldwide World, ****-****, thousands of hectares Source: ****

France is also well advanced in the conversion of its olive groves to organic production, as shown in the following graph:

Countries with the highest share of organic area Europe, ****, in Source: ****

France has the highest share of organic acreage in Europe, far ahead of Italy, which is in second place with half as much organic acreage.

Between **** and ****, the market share of organic olive oils grew by an average of **.*% each year. This is largely due to lower prices relative to non-organic oils.

Farmers have realized that the organic olive oil market could be a way of standing out from their competitors. As a result, the ...

2.3 French preferences

In terms of preferences, the Puget brand tops the sales rankings, making it the most popular brand with the French.

Olive oil market share by value France, ****, in Source: ****

Nevertheless, private labels together hold the majority of market share (***). Lesieur holds **.*% and Carapelli **.*%.

3.1 Olive industry value chain

Value chain:

Agricultural producers: Olive growers cultivate olive groves and harvest the fruit. Their role is crucial, as the quality of the oil depends directly on the olives produced. Example: Les Moulins de Calanquet (***)

Processors: Mills or cooperatives press olives to produce oil. They play a key role in extraction and initial processing, guaranteeing production in line with quality standards (***).

Packers and bottlers: These are responsible for filtering, blending and packaging the olive oil in bottles or containers suitable for distribution. They are essential for standardizing the product and guaranteeing its traceability. Example: Puget.

Distributors (***) on the market. Example: Carrefour.

Final consumers: Households, restaurateurs or the food industry who use olive oil in cooking or as an ingredient in other products. Example: French households.

3.2 A highly heterogeneous national production

As the diagram below shows, most of France's olive oil production takes place in the PACA region (***), which accounts for **% of the French total.

Breakdown of regional production in France France, ****, in tons Source: ****

The remainder of production comes from the Occitanie (***) regions.

As the following graph shows, French olive oil production can be highly volatile from one year to the next, with a slight upward trend over ** years (***). Climatic hazards are the main explanation for these variations.

Evolution of national olive oil production in France France, ****-****, in tons France Agri Mer

**.*% of French olive oil is produced under an appellation d'origine (***), which means that just over a third of production is protected internationally from counterfeiting. [***]

3.3 A protean cast

Olive oil is marketed by the mills through four different channels:

direct sales to consumers sales to distributors bulk sales (***) e-commerce

E-commerce developed during the pandemic, but has now become an essential distribution lever.

Impact of the war in Ukraine

The current economic context (***) has a significant influence on the consumption of non-essential products, and therefore on olive oil consumption in particular. The increase in the price of oils and fats is estimated at over **%.

Olive oil volumes sold by mills, by marketing channel France, ****, in tons Source: ****

This graph shows that the majority of olive oils produced by mills in France are sold through short distribution channels, with **% going directly to consumers. This pattern reflects the importance of local ties in this sector. Bulk sales, representing **%, mainly meet industrial or repackaging demand, while mass distribution, with only **%, plays a secondary role. This highlights a market dominated by alternative channels, where direct or semi-direct contact with the product takes precedence over traditional channels.

3.4 A low and irregular level of productivity

The French olive orchard is characterized by low and, above all, irregular productivity: fluctuations ranging from * to * percentage points over less than three years.

Olive orchard productivity France, ****-****, in Source: ****

This graph shows the evolution of national olive oil yield as a percentage between ****/**** and ****/****, highlighting the alternation phenomenon typical of olive orchards, where yields fluctuate significantly from one year to the next. A regular oscillation can be observed, with years of high yields followed by

followed by significant declines. For example, between ****/**** and ****/****, yields fell from **% to **%. This alternation continues over the years, with a yield peak in ****/**** of around **%, followed by a significant drop the following year. from ****/****, yields become more stable before declining in ****/****, when they reach their lowest level since ****/****. This phenomenon is mainly influenced by factors such as climatic conditions, farming practices making olive oil production subject to significant variations. This variability complicates yield forecasting, leaving producers vulnerable to economic and environmental uncertainties.

4.1 Olive oil typology

There are four different types of olive oil:

Extravirgin olive oil: this is the best quality olive oil you can find. It contains a very low level of acidity (***). It has a strong taste and aroma. Virgin olive oil: this is a superior quality virgin olive oil, but with an aroma that may contain certain imperfections and an acidity level of between *.*° and *°. Olive oil: a blend of refined and virgin olive oils. Olive pomace oil or lampante oil (***). It cannot be sold to the consumer and must be refined.

Entry-level or mid-range olive oils, whether marketed by private labels or specialized brands, are also a standardized product. As France Infomajor olive oil producers blend oils from different origins to offer a standard product that is identical from one year to the next, regardless of the vagaries of harvesting in a given region.

conversely, high-end oils are based on the specific characteristics of a terroir (***) to offer a unique product that depends on the weather over the past year. This is the model most often chosen by French oil mills.

Oils are also differentiated according to whether they are organic (***) or not, and other differentiations are emerging, such as extra light ...

4.2 Wholesale oil prices fluctuate with harvests

Trends in olive oil prices World, ****-****, in dollars Source: ****

The graph above shows world prices for extra virgin olive oil. These price variations, which depend on many factors, are reflected in the prices paid by the end consumer. This volatility is due to the fact that olive oil production depends on olive harvests, which can vary greatly according to climatic conditions or olive yields (***).

Extra virgin olive oil prices Europe, ****-****, in €/***kg Source: ****

The graph above shows that olive oil prices in the main European producer countries are fairly correlated. This is due to production generally being affected by the same factors. Italian olive oil remains historically more expensive than its competitors.

In ****, the price of olive oil in France rose by **%. The reason behind this surge in prices is the outbreak of a bacterium - Xylella fastidiosa - and a fly - Bactrocera oleae - attacking olive trees, the latter having decimated the **** season's olive harvest. [***]

Extra-virgin olive oil remains more expensive than refined olive oil, which is obtained by solvent, allowing yields of around **% - far higher than those of virgin olive oil obtained by pressing. [***]

4.3 Retail oil prices for French consumers

Olive oil price chart

We distinguish between four different types of oil: entry-level, private label, specialty and premium. For the most part, we'll be relying on the carrefour websitewebsite, and compare prices per liter. Prices are those observed in November **** on the sites indicated:

entry-level oils : leclerc Eco+ olive oilat €*.**/l ; carrefour first-price olive oilat €*.**/L; private label oils : carrefour extra virgin olive oilextra virgin olive oil, at *.** €/L; rustica extra virgin olive oil Leclerc, at €**.**/L; specialty brand oils : puget extra virgin olive oilextra virgin olive oil, at €**.**/L high-end oils : margier organic olive oils (***) at around ** €/**cl ; olive oil **/** Manaki variety (***); ****+ Olisir oil (***) at €**.*/L.

Sales prices for French oils

More generally, supermarket prices fell steadily until ****, as shown in the graph below, at an average annual rate of -*.*%. However, prices began to rise again in ****, reaching an average of €*.* per liter. The average annual rise in prices between **** and **** was +*.*%.

Evolution of average olive oil prices in traditional supermarkets, e-commerce and hard discount outlets France, ****-****, in €/liter Source: ****

but between **** and ****, price rises have been contained across all channels. Hard discount olive oil prices have even fallen slightly.

4.4 Moving upmarket in the oil market

Bottled olive oil producers are trying to promote the authenticity of their oil and its Mediterranean "terroir" heritage.

With pressure on the olive oil supply, despite the slight decline in French demand, some producers are offering upmarket products with supposedly superior quality to their competitors.

Olive oil producers are therefore banking on the oil's taste and aroma, as well as its nutritional and medicinal qualities.

A recent study by Harvard researchers highlights a new benefit of olive oil, confirming its major role in the prevention of various diseases. Already recognized for its beneficial effects on cardiovascular health, notably through its ability to reduce bad cholesterolrol and prevent arterial obstructions, olive oil is also associated with a reduced risk of breast and prostate cancer.

The study, carried out on more than **,*** people over a **-year period, revealed that daily consumption of at least * grams of olive oil (***) reduced the risk of dementia-related death by **%, regardless of overall diet quality. This result is explained by olive oil's richness in monounsaturated fats and antioxidants, compounds that actively protect the brain and slow down neurodegenerative processes.

To maximize these benefits, we recommend extra-virgin olive oil from first cold pressing, packaged in suitable containers such as ...

5.1 Strict oil regulations for information purposes

Codified labelling

In the European Union (***), the sale of olive oil to end consumers is highly regulated, particularly with regard to labeling and product information. The EU provides a legal framework through three regulations currently in force:

Commission Implementing Regulation (***) No. **/**** of January **, **** on marketing standards for olive oil. Commission Regulation (***) no. ****/** of July **, ****, on the characteristics of olive oil and olive-pomace oil and on the relevant methods of analysis. Council Regulation (***) No ****/** .

The aim of the law is twofold: to provide the consumer with the best possible information, and to distinguish the product by its origin and composition. In order to avoid any confusion on the part of the consumer, olive oil product labels must include a number of compulsory statements: a trade name, a batch number, storage conditions, the origin and place of crushing of the olives, the net quantity, an approval number, nutritional values, the durability date and the name and address of the producer.

Outside the EU, each country defines its own commercial policy for olive oil.

Commission Delegated Regulation (***) No. **/****, while introducing clarifications on organoleptic indications and packaging conditions for olive oils.

Olive oil compliance

In France, labelling rules are strict and must objectively represent the ...

6.1 Segmentation

• Lesieur (Avril Groupe)
• Bunge
• Unilever Groupe
• Deoleo
• Avril Groupe
• Benedicta (groupe Kraft Heinz)
• Puget Lesieur (Avril Groupe)
• Carapelli
• Tramier
• Oliviers & Co
• Moulin Castelas
• Moulin Margier (Domaine La Michelle)
• Bioplanete Huilerie Moog
• Kalios
• Costa d'Oro (Avril Groupe)
• Huile de Mon Père Parcelle 26