FDBusiness.com

European Olive Oil Market Worth €3 Billion – Shoppers Focus More on Quality Than Price

 Breaking News
  • Valeo Foods Acquires Tangerine Confectionery For £100 Million Valeo Foods Group, the acquisitive Irish and international food business, is reported to have purchased Tangerine Confectionery of the UK for £100 million (€112 million) from Blackstone Group. The deal adds popular UK confectionery brands such as Dip Dab, Fruit Salad and Blackjack to Valeo Foods Group’s growing portfolio, and will increase annual turnover to [...]...
  • Constellation Brands to Invest $4 Billion to Develop Canabis Market Constellation Brands, the North American and international alcoholic drinks group, is investing US$4 billion (C$5 billion) to increase its stake in Canopy Growth Corporation, a leading diversified cannabis company, to 38%. The significantly expanded strategic partnership will position Canopy Growth as the global leader in cannabis production, branding, intellectual property and retailing. As a result of [...]...
  • Brewing Up Authenticity, Vibrancy, and Sol With the hot summer months in full swing, beer lovers are reaching for their favorite cold brews to beat the heat. But as consumers venture down their grocer’s beer aisle, they are met with an onslaught of brands vying for attention in a sea of packaging. When MillerCoors recently relaunched the Mexican import brand Sol, they [...]...
  • Carlsberg Group Delivers Strong First Half Carlsberg Group has increased operating profit organically by 14.2% in the first half of 2018 with all three of its regions – Western Europe, Asia and Eastern Europe – delivering very solid performances. Organic net revenue growth was 5.1%. Reported operating profit rose by 6.0% to DKr4.373 billion (€586.5 million), impacted by negative currency factors [...]...
  • Levi Roots Caribbean Snack Pots Launched by Aimia Foods Aimia Foods is introducing to the market ‘Levi Roots Caribbean Snack Pots’, a range of On the Go Instant Snack Pots, that consumers simply add hot water to and stir for ease of preparation. Using natural, clean ingredients, the products have an authentic, home cooked taste and incorporate the Levi Roots Caribbean vibe, flavours and recipes. Michelle [...]...

European Olive Oil Market Worth €3 Billion – Shoppers Focus More on Quality Than Price

European Olive Oil Market Worth €3 Billion – Shoppers Focus More on Quality Than Price
July 23
09:14 2018

Poor harvest conditions continue to provide a challenging backdrop to the Olive Oil market, according to the latest analysis of value and volume sales across Europe (UK, France, Germany, Greece, Italy, Spain and the Netherlands) by IRI, the big data and technology expert for consumer industries. While six of the seven countries analyzed post value sales growth close to 6% year on year (yoy), thanks to higher material costs and price inflation across the region, all markets show volume declines in the last year (-4.3%). The most notable volume decline is in Spain (-6.8%) followed by Germany (-6.7%) and Greece (-6.0%). The Netherlands and Italy show the smallest volume declines at -0.4% and -0.6% respectively.

According to IRI’s analysis, the European Olive Oil market overall is worth €3bn, with Extra Virgin Oil managing to stave off decreases in volume yoy, potentially helped by lower price inflation rates compared to the overall category. Extra Virgin now contributes €1.2bn, while Standard Olive Oil contributes around three-quarters of a billion Euros.

Notably, Organic Olive Oil has grown by 37.4% in value and 17.5% in volume in the UK market compared to a year ago, thanks in part to shopper perception about the health benefits, although overall sales in this segment are still low.

The Olives market shows a similar pattern, according to IRI, with six of the seven countries posting value growth close to 6% yoy, but all markets showing volume declines in the last year. Green olives dominate across Europe, yet black olives show stronger underlying growth more consistently.

“Olive oil prices have risen substantially, as poor harvests and challenging economic conditions have impacted the price of raw materials and production costs by as much as 13% or 14% in countries like Greece and Italy,” comments Olly Abotorabi, Senior Regional Insights Manager at IRI.

“As a result we’re seeing a very interesting picture of the current state of the market, with volume declines in all markets, but value increases versus a year ago. High shelf prices are starting act as a deterrent and prompt consumers to try other cooking oils. In Germany, for example, we see high strong volume growth for Linseed Oils at +18% yoy albeit from a smaller base, while lower prices for sunflower oil appear to be bolstering its fortunes, volumes up +10% yoy.

“Looking to the future, a better harvest and production will help re-stimulate growth prospects. However, Olive Oil will continue to face increasing competition from alternative oil types like sesame, rapeseed and coconut oils.”

IRI also anticipates that Olive Oil manufacturers will come under increasing pressure about packaging. While plastic bottle formats do well across key European markets, they will be susceptible to more environmental focus, consumer pressure and changing retailer focus.

Similarly with Olives, the growth in healthy snacking across Europe, as identified in a recent IRI report will see more innovative packaging like pouches aimed at consumers looking for ready to eat options.

EU producing countries account for 70-75% of world production of olive oil and more than one third for table olives (European Parliament Think Tank) 

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 12, 2018Packaging Innovations & Luxury Packaging London 2018
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements