Italian Olive Oil Market on the Rise: A Look at Growth Trends for 2024

The global olive oil industry is a dynamic sector that continues to evolve, and recent data from Mediobanca’s Area Studi offers a promising outlook for Italy’s role in the market. Italian companies, particularly in olive oil production and trading, are poised for significant growth in 2024, with an expected 9.5% increase in sales and 6.8% growth in exports. These figures are a testament to the resilience and innovation of Italy’s olive oil producers, who are responding to both global and domestic demands.

Globally, olive oil production in 2023/24 is projected to reach 2.4 million tons, marking a decline of 6.3% from the previous two-year period and a significant drop of 24.9% compared to the peak in 2021/22. Despite this decrease, the European Union dominates the global market, accounting for 71.7% of worldwide production, led by Spain, Italy, and Greece.

Italy holds 12% of global production, cementing its position as a leading player in the sector. Within this context, Italian olive oil remains a symbol of quality, tradition, and excellence, making it a sought-after product in both Western and Asian markets.

The Role of GDO in Distribution

The GDO (large-scale retail) sector is the primary distribution channel for Italian olive oil, representing 34.2% of total sales. This is followed by industrial operators (32.2%) and intermediaries or wholesalers (21.4%). While the HoReCa sector accounts for only 4% of sales, it remains a strategic area for growth, particularly in international markets where Italian cuisine is highly valued.

Online sales, while still relatively small, are growing steadily. Proprietary websites account for 5.9% of sales, with additional contributions from generalist platforms (0.2%) and other channels (2.1%).

When it comes to production, Puglia leads the charge, accounting for an impressive 59.3% of Italy’s olive oil output. The provinces of Bari and BAT (Barletta, Andria, Trani) alone contribute 45.7%, compensating for production losses in other areas affected by the Xylella outbreak. Other key producing regions include Sicily (12.1%) and Calabria (10.6%), while Tuscany, Abruzzo, Lazio, and Campania play smaller but important roles.

Italy is also home to 42 DOP and IGP olive oils, which represent 32.7% of EU-registered olive oil products and 15.3% of Italy’s total certified food products. However, these specialty oils make up just 5.6% of Italy’s total olive oil production, offering significant room for growth in premium markets.

Opportunities in Export and Investment

For 2024, Italian olive oil producers are expected to increase their investments by a remarkable 53.6%, focusing on marketing and sustainability initiatives. Marketing expenditure is projected to rise from 0.3% of revenue in 2023 to 0.5% in 2024, signaling a renewed commitment to branding and consumer engagement.

Exports, which grew by 18.1% in 2022, remain a vital area of focus. Southeast Asia, in particular, offers immense potential for growth as consumers in the region increasingly embrace Mediterranean diets and high-quality Italian products.

At Alifood, we bridge the gap between Italian producers and the global market, offering tailored solutions for the GDO and Ho Re Ca sectors. With deep expertise in food trading and a strong network of partners, we help ensure that Italian olive oil reaches the tables of discerning consumers worldwide.

As the Italian olive oil market continues to grow, especially in premium and export segments, Alifood remains committed to delivering excellence, sustainability, and innovation. Let’s work together to bring the best of Italy to the world.