FDBusiness.com

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

 Breaking News
  • Discovery, Plant-Based and Alternatives Lead the Top Ten Trends For 2019 Targeting increasingly adventurous consumers, set on new discoveries and experiences, will be key to developments in the food and beverage industry in 2019. The connected world has led consumers of all ages to become more knowledgeable of other cultures, contributing to 35 percent growth of “discovery” claims, when comparing 2017 and 2016 new product launch [...]...
  • Pearse Lyons Brewery to Open New Facility at Historic Irish Site Alltech Beverage Division Ireland (ABDI) has made an announcement about the planned opening of a new brewery at the historic site of the old MacArdle Moore Brewery in Dundalk. The new Pearse Lyons Brewery will incorporate the relocation of the Station Works Brewery in Newry, which was acquired by the late Dr. Pearse Lyons in [...]...
  • WRAP Comes Up With Winning Formula to Tackle Milk Waste A new report from the UK’s leading sustainability experts WRAP shows for the first time the scale of milk wastes across the food chain, from processing to our homes, and highlights ways we can significantly reduce the 330,000 tonnes of total milk lost each year, worth more than £150 million. Milk waste in the home is [...]...
  • Samworth Brothers Launches New Fitness-focused Ready Meal Range With Innovative Identity by Brandon Leading British food manufacturer Samworth Brothers is launching a ground-breaking range of ready meals to appeal to everyday athletes, with brand identity and packaging by design consultancy Brandon. Responding to an increasing consumer demand for healthier convenience options, the meals, which come in three variants – Cajun Chicken, Turmeric Chicken and Pad Thai Chicken – are [...]...
  • Premier Foods Shows Resilience Premier Foods has reported a 1.3% increase in group revenue to £358.0 million and a 6.2% rise in trading profit to £51.0 million for the 26 weeks ended 29 September 2018. The group’s largest brand, Mr Kipling, was key to this growth following an excellent consumer response to its relaunch in the UK with revenues [...]...

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

  • November 21, 2018expoSE European Asparagus and Strawberry Fair
  • November 27, 2018Health Ingredients Europe
  • November 28, 2018FOOD & LIFE
  • December 3, 2018P&P 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements