Olive oil industry in Italy - Statistic & Facts
Italy is one of the leading EU and global olive oil producers, with annual production reaching 289,000 tons in the most recent crop year. Nonetheless, the production volume fluctuated notably, experiencing a general decline. For instance, around 20 years ago, it peaked at over double the current value. Such fluctuating production figures are common and stem from the influence of climatic conditions and water availability, which can either enhance or hinder production in alternating years. The recent decline can be attributed to exceptionally hot weather and prolonged drought conditions, significantly impacting olive oil production across southern Europe and subsequently leading to a notable price surge. Specifically in Italy, prices of olive oil witnessed a substantial increase, with the third quarter of 2023 alone showing a rise of over 100 percent compared to the corresponding period in the previous year.
If olive oil prices remain constant or, worse yet, continue to escalate, consumers may transition to alternative options, like more affordable vegetable oils.
Olive oil production
Olive trees are grown across the whole Italian peninsula. However, olive production is especially prominent in southern Italy, with Apulia being the undisputed leading producer of olive oil with close to 202,000 tons annually. Sicily and Calabria came next in terms of output with 37,292 and 33,300 tons, respectively. Apulia also counted the highest number of olive oil mills, with 746 sites, followed again by Calabria and Sicily.Olive oil trade
Italian olive oil exports have mirrored fluctuations in production and have declined overall to an estimated volume of 175,500 tons. Regarding export value, the U.S. emerged as the primary importer of olive oil, surpassing other countries like Japan and Canada. In the EU, Germany was the leading trade partner, with an import value of more than 268 million euros. Among the different types of olive oil, extra-virgin was the most traded one. Extra-virgin olive oil is extracted mechanically and with low temperatures to avoid potential altering of the oil’s characteristics and flavors.Italian olive oil market
Owing to escalating prices, despite olive oil being a traditional component of Italian cuisine, a considerable number of consumers in the country either decreased the frequency or quantity of their extra-virgin olive oil purchases. Within a mere two-year span, the a price of extra-virgin olive oil in Italy surged nearly twofold, soaring from 4.3 euros per liter in 2021 to over eight euros per liter by 2023. Consequently, this led to a decline in its sales volume within the food retail sector as fewer individuals bought it or reduced their purchase frequency. Between 2021 and 2023, the sales volume went from 9.4 million liters to 7.4 million liters.If olive oil prices remain constant or, worse yet, continue to escalate, consumers may transition to alternative options, like more affordable vegetable oils.
