Uncover sources of future market growth for the Olive Oil in Eurasia

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After the decrease in consumption of oils and fats in 2013, 2014 recorded positive results. The devaluation of the national currency led to a shift towards less expensive products and larger bottles. Moreover, locals usually have wide range of oils at home for various purposes, such as sunflower oil for cooking, better quality vegetable or seed oil for salads or snack preparation, butter for sandwiches and margarine for baked goods.

During the forecast period oils and fats will likely be more carefully analysed by customers and a switch towards healthier products is expected to take place. Consumer education, the improving quality of life, and the growing trend towards health and fitness will drive a more careful selection of oils and fats.

Olive oil is set to benefit from these trends and the expected increase in consumption over the forecast period is the highest among all oils and fats.

Olive oil market in Kazakhstan

The olive oil market in Kazakhstan is still young, growing faster than other oils. This country does not have its own production and the market feeds directly of imports, as shows a report by ICEX Spain Export and Investment.

The major exporters to this market are Spain, Turkey, Italy, Lithuania and Greece, with Spain as undisputed leader in sales with a market share of 67.32% in 2014.

According to this study, the consumption of olive oil is still limited, and that ignorance is high and usually has specific uses (salads, special meals…).

At the product level, olive oil has a “great presentation” in the market, with strong positioning in commercial areas, a large variety of brands and products closely identified with its origin.

The main sales points are hypermarkets and supermarkets along with Premium stores. The study shows that olive oil is rarely found in classical markets and bazaars or if so there are greater risks of falsification and fraud regarding low quality products.

Speaking about the perception of the Spanish product, the report indicates that it is considered of high quality and a very good choice because of its good quality-to-price ratio, although the main problem of this market is that product knowledge is still very limited.

Increased growth
The report also highlights that the oil market has been having the highest growths among the other oils with an increase of 31% in 2014.

Therefire, the Westernization of the population, the increase of modern sales areas, higher knowledge about quality olive oil and the development of a gastronomic education make this market more and more relevant lately.

One of the biggest problems of the Kazakh market is the logistics and geographical distance. Market access has to be performed under the standards of the Customs Economic Union, in which Kazakhstan is involved.

As ICEX highlights, this country is a challenge for olive oil exports and presents difficulties, although this should not discourage the companies to enter in it, as it presents interesting opportunities.

Article sources: mercacei, Euromonitor

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