The olive oil market - Italy

1.2 Global Market Analysis

The global olive oil market was estimated at **.** Billion USD in ****, and it is expected to grow at a CAGR of *.*% during the forecasted period, reaching a value of **.** Billion USD in **** [***]. The graph below shows the trend that the global olive oil market will register according to the forecasted figures from **** to ****.

Olive Oil Market - Forecasted Value World, ****-****, in Billion USD. Source: ****

As it can be deducted from the graph above, the global olive oil market is expected to experience a relevant growth thanks to an increased demand for the product, especially coming from the food service and retail channels. In particular, olive oil is an integrating part of the Mediterranean diet, thus the importance and notoriety that Mediterranean cuisines, with special regard to the Italian, has gained globally, has also contributed to the increased popularity of olive oil across various regions of the world. Moreover, due to the several health benefits that olive oil owns, in recent years it has also been extensively utilized as an ingredient in the manufacturing of dietary supplements and pharmaceuticals. In particular, such categories of health effects are mainly associated with the omega-* fatty acid content, that is driving its demand in ...

1.3 The Italian Market

The Italian market for olive oil reached a value of *.** billion Euros in ****. The graph below shows the trend registered in the production value in the last * years.

Olive Oil Market - Production Value Italy, ****-****, in Billion Euros. Source: ****

Given the beneficial features that olive oil has related to health, it is increasingly in demand abroad, and it has become a symbol of quality Made in Italy that stimulates the sales of companies. In ****, both consumption in Italy (***) [***].

Moreover, with the ongoing health emergency and the consequent restrictions imposed on restaurants and bars, Italian families have gone back to cooking at home and stocking up on healthy, Made in Italy products. Among these, creams, sauces, creamed soups, cookies, breadsticks, taralli, crackers, etc. All products prepared with extra virgin olive oil that, thanks to the many positive effects it can have on the body, are winning over consumers and increasing demand. This is also testified by a recent report of the European Commission, which, as far as Europe is concerned, recorded a +**.*% in exports to non-European countries between October **** and September ****, in particular to Australia (***). Relative to Italy, however, intra-European exports increased by **.*% between October **** and August ****.

The graph below shows ...

1.4 Import and Export Analysis

Considering the import and export analysis, the graph below shows the trend registered in importations and exportations in the last * years, as well as the coverage ratio between them. As it can be inferred from the graph, the value of importations was estimated at *.** billion USD in ****, while that of exportations was estimated at *.*** billion USD. Therefore, in **** the value of exportations outperformed that of importations, registering a positive trade balance. However, this is not the case for the entire period under consideration, given that, for all the years previous to ****, the value of importations was higher than that of exportations, registering a deficit in the trade balance. 

Olive Oil Market - Import and Export Analysis Italy, ****-****, in Billion USD. Source: ****

In particular, dealing with exportations, the graph below shows the proportion of the total value of products exported towards the main destination countries. According to the value of goods exported, USA, Germany, and France are the most important countries for Italian exportations, recording a value of, respectively, ***.*, ***.*, and ***.* million USD. Moreover, given that the first six destination countries for Italian exportations cover a proportion of almost **% of their total value, it can be inferred that exportations are very concentrated ...

1.5 Covid-19 Impact

As explained in paragraph *.*, in **** the Italian olive oil market experienced a price crisis due to both lack of profitability in the sector and duties imposed by the United States on importation of olive oil from Spain, which however exerted a great influence over the parallel market in Italy. During the following year, the explosion of the pandemic played also a relevant part in the development of the market. Italians, being forced to spend a long time at home, and given that many families spent their time experimenting and cooking typical Italian dishes - which make all use of olive oil as an ingredient - increased their demand for the product and **** ended up being the year of records for the universe of olive oil producers around the world. Indeed, such a year recorder the highest value of consumption of olive oil: with specific regard to the category of extra virgin olive oil, it has been estimated that *.* million tons of it were consumed in **** globally, registering an increase by +**% compared to the previous year [***]. However, Coldiretti - the largest association representing and assisting Italian agriculture - estimated that the restriction imposed due to the pandemic, with main regard to the ...

2.1 Demand Overview

Considering the demand of olive oil in Italy, it is worth analysing the quantity of goods produced and sold in the country. The following graph shows the trend that such a demand has witnessed in the last * years.

Olive Oil Market - Production Value of Goods Sold Italy, ****-****, in Tons. Source: ****

2.2 Demand Drivers

One of the main drivers for the demand of olive oil is constituted by the average expenditure that Italian families sustain for olive oil on a monthly basis.

Olive Oil - Average Monthly Expenditure Italy, ****-****, in Euros. Source: ****

As it can be seen from the graph above, the average monthly expenditure that families sustain for olive oil has fluctuated a little during the period under analysis (***). However, considering what explained in the sections before, it can be concluded that the decrease in the average expenditure witnessed from **** to **** was not generated by a decrease in the consumptions, but rather by the price crisis generated globally. However, with regard to the production of olive oil, it is also worth analysing which are the most important categories of olives utilized in this production, as well as the geographical locations where they are grown. The following table highlights the main features of olives utilized in the production of oil.

Geographical Area Category Region Features Northern and Central Italy Canino Lazio Rustic plant of easy adaptation and with remarkable suckering activity. Productivity is high and alternating. The oil content is medium. Gentile Central Italy Gentle variety with high and constant productivity is also appreciated ...

2.3 Geographical Distribution of Demand

In order to analyse the geographical distribution of the demand for olive oil, it is worth considering average expenditure that families sustain for such a product on a monthly basis in the different Italian macro regions.

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From the chart above, it can be inferred that the demand for olive oil is more concentrated in central and southern regions rather than in the North. This phenomenon can be explained by the fact that olive oil is mainly linked to the Mediterranean diet, typical of costal and southern regions of Italy.

3.1 Structure and Dynamics of the Market

In order to analyse the structure as well as the main dynamics of the Italian olive oil market, it is necessary to rely on the figures related to ATECO ***** - Production of Olive Oils. The following graph shows the trend in the number of companies specialized in such a sector operating in the Italian territory.

Production of Olive Oil - Number of Entities Italy, ****-****, in Units. Source: ****

Considering the figures highlighted in the graph above, it is possible to estimate that, in Italy, during the period under analysis, an average of *,*** entities operated in the production of olive oil. Such a high number can be explained, on one hand, by the fact that olive oil, as explained in the introduction to this market analysis, has gained lots of notoriety globally, both as a basic ingredient for the Mediterranean cuisine and as a product utilized in the production of pharmaceuticals given its beneficial characteristics. On the other hand, from the graph below, it can be seen that the vast majority of entities operating in the sector are represented by self-employed professionals and limited partnerships, therefore being mainly small entities.

Production of Olive Oil - Legal Entities Italy, ****, in %. Source: ****

Eventually, dealing ...

3.2 Value Chain

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According to the value chain reported above, olives undergo a long process of treatments before being ready to be processed and transformed into oil. Also, it can be noticed that there are different techniques that can be involved to carry out each phase of the process: for instance, when it comes to extraction, oil producers can rely on either chemical extraction or rotary driers.

3.3 Main Players

The main players in the Italian market for olive oil are listed in the table below.

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4.1 Typology of the Offer

Depending on the degree of acidity, we distinguish extra virgin olive oil (***) from virgin olive oil from simple olive oil that has * degrees of acidity or more. The table below shows the main categories of olive oil, grouped according to their level of acidity.

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4.2 Pricing

According to ECOICOP ***** - Olive oil - the graph below shows the trend registered in the consumer price index in the last * years.

Olive Oil Market - Consumer Price Index Italy, ****-****, in Base **** = *** Source: ****

Even in this case, there are just small fluctuations in the value, which also highlights the decrease in the price of oil in **** and ****. The table below shows the average price of the main categories of olive oil which are available in the Italian market.

Category Average Price in Euros Extra Virgin Olive Oil *.** Virgin Olive Oil *.** Lampante Olive Oil *.** [***]

5.1 Regulatory Framework

Dealing with the regulatory framework related to the production of olive oil, one of the main interests is to guarantee a high quality of the products supplied in the market. Therefore, the European Union has introduced a series of regulations aimed at codifying the main categories of olive oil. Such a regulating framework is composed by:

Directive ***/**/EEC; European Commission Regulation ****/**; European Commission Regulation ****/**.

According to these regulations, the only admissible categories of olive oil are the ones listed in section *.* - Typology of the offer. However, also as a consequence of the many scandals about extra virgin olive oil which lead to completely different prices of oil on the market and which make people doubt about quality, the European community has introduced new criteria to judge the quality of extra virgin olive oil which must have a fruity taste, that is an olive taste. Therefore, it is not enough the fact that extra virgin olive oil has a very low acidity (***) at the aspect, but in order to be considered REAL extra virgin olive oil it must pass the taste test, and it must have the taste of olive.

More specifically, the sensory analysis is regulated by the norms introduced ...

6.1 Segmentation

• Bertolli
• Pantaleo
• De Cecco
• Clemente
• Monini
• Carapelli
• Costa d'Oro (Avril Groupe)