- Demand for olive oil in emerging markets has grown at a rate of over 13% since 2007 and such double digit growth is expected to continue for at least the next five years. According to a new report from Rabobank, suppliers will have to differentiate their strategy change the way...
Demand for olive oil in emerging markets has grown at a rate of over 13%
since 2007 and such double digit growth is expected to continue for at least the next five years. According to a new report from Rabobank, suppliers will have to differentiate their strategy change the way in which they source their produce if they hope to access the full potential of these new markets. The nascent Chinese market offers a considerable opportunity, with A-brands and cost leaders best positioned for success.
“The global olive oil market grew at a 3% CAGR between 2008 and 2012, but this growth rate varies widely across different markets” commented Rabobank analyst, Vito Martielli.
“Traditional consumer countries in the North Mediterranean, i.e. Italy, Spain and Greece, have the highest per capita consumption (more than 12kgs per person) but are characterised by a very mature and stagnating market. In contrast, developed markets offer significant potential in terms of both value (at present they account for 41% of the global market) and growth; with levels projected to continue at around 4% for at least the next five years”.
Emerging markets that hold the greatest potential for the olive oil industry posting an impressive 13% growth rate over the last five years and looks set to continue. Brazil and China are the two most important in terms of volume and producers are gearing up to tap into the opportunities on offer in each country.
Business strategies need to adapt to different market structures
China imported 45,000 tonnes of olive oil in 2012 and is fast becoming a crucial market for producers. Several major state-owned enterprises (SOE) have been increasing their imports of bulk olive oil from southern Europe. Rabobank expects to see in China an increasing number of olive oil cost leaders partnering with local brands that have existing distribution capabilities. In other emerging countries, like Brazil and Russia brand players will have a critical role.
Private label products (PL) and A-brands represent the primary growth opportunities in developed countries. In the UK, the most developed food retailer market, the PL share in olive oil accounts for almost 5%, while it accounts for only 25% in the US and just 20% in the most fragmented Italian market. The latter two markets and several other northern European markets provide another interesting growth opportunity.
There are factors which will restrict the industry’s ability to realise its ambitions in emerging markets. First, there is a need for all players to strengthen their strategic sourcing options. Secondly, a generic marketing campaign is required in emerging markets, to educate consumers about the benefits and versatility of olive oil.
Source: RabobankVN:F [1.9.22_1171]VN:F [1.9.22_1171]
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- Global olive oil market is one of the fastest growing segments of the global food industry, showing significant growth year after year. Olive oil is the main component of the Mediterranean diet, the health properties of which makes olive oil a food product with a promising future....
Global olive oil market is one of the fastest growing segments of the global food industry, showing significant growth year after year. Olive oil is the main component of the Mediterranean diet, the health properties of which makes olive oil a food product with a promising future. Seeing the level of consumption and growth opportunities, countries like India and Brazil have launched projects for the cultivation of olive oil, but as of now, there has been limited success.
Spain is the largest producer and exporter of olive oil in the world, followed by Italy. While the US is the third largest consumer of olive oil, after Spain and Italy, the consumption pattern of olive oil in the BRIC countries have shown tremendous growth. It is expected that in the near future, India and China will be on the list of largest consumers of olive oil, as people have started recognizing the health benefits of olive oil and have accepted it as cooking oil.
As the production of olive oil is limited to some specific geography, pricing of olive oil sees major fluctuations when production or cultivation gets affected. For example, the prices of olive oil is likely to surge up due to the drought in Spain, as Spain produces almost half of the world’s olive oil and with the fall in harvest of olive oil in 2012, it will have its long-term impact on prices.
The report titled “Global Olive Oil Market”: Trends & Opportunities (2012-2017)” offers an in-depth analysis of the global olive oil market, with detailed discussion of the major olive oil producing, consuming, importing and exporting countries. The key market challenges recognized by the analysts and the major trends of the global olive oil market are presented in the report.
Further, key players of the market like Deoleo (formerly known as SOS), Colavita, Borges and Ybarra have been profiled and the growth of the market has been projected taking into consideration various aspects like previous growth patterns, the current trends and the growth drivers.
This report analyzes the worldwide markets for Olive Oil in Thousand Tons. The major product types analyzed are Extra Virgin Olive Oils (Premium Extra Virgin, Extra Virgin Olive Oil), Virgin Olive Oils (Fine Virgin, Virgin, Semi-fine Virgin, Lampante Virgin), Refined Olive Oils (Refined Olive Oil, Olive Oil, Olive Pomace Oil, Pomace), and Miscellaneous Olive Oils (Mild in Taste Olive Oil, Extra Light Olive Oil, and Flavored Olive Oils). The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific (Excluding Japan), Middle East, Latin America, and Africa. Annual forecasts are provided for each region for the period of 2001 through 2010. A ten-years historic analysis is also provided for these markets with annual market analytics. The report profiles 502 companies including many key and niche players worldwide such as Aceites Agro Sevilla, S.A, Agricola Valle Grande, Angel Camacho, S.A., Aceites Coosur, S.A., Borges USA – STAR Fine Foods, Inc, Blauel, Carapelli, Carapelli USA LLC, Filippo Berio, Minerva, Moreno S.A., Nicola Pantaleo, Pompeian, Inc, SALOV, Timbercorp Limited, TerraMater, and Unilever Group.
Buy Report at researchandmarketsVN:F [1.9.22_1171]VN:F [1.9.22_1171]
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