The global olive oil market is rolling in more than $ 13 billion, showing a growth forecast of 3.2% per year for the next five years as well. About half of the world’s olive oil is consumed in the European market, the country leading the olive oil industry is Spain, which produces more than 1.5 million tonnes of produce, followed by Italy, which produces more than half a million tonnes of oil. They are followed by Greece, which stands at about 400,000 tons of olive oil a year.
The output of these three countries is about 60% of the total world produce in the segment (some of the well-known and beloved Israeli brands are made in Spain and are bottled in Israel to meet demand or costs). Olive oils are not only used for food, but have become popular in recent years in cosmetics and care products. Yes they are used as an ingredient in the worlds of pharmaceuticals and various industries, but still, 73.03% of the total world produce is for pure, refined olive oils, that is, oils that we consume in the marketing chains, deli and restaurants.
The olive oil culture is very similar to the wine consumption culture. There are also many and varied varieties in the world of olives, close to 40 different varieties are grown in Israel, and there are more than 1,500 different varieties in the world. Not every variety is edible, and there are varieties that even after repair and purification do not meet the standards. Olive oils are divided into levels according to the percentage of acidity tested after their production.
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Quality Indices of Olive Oil
Extra Virgin Olive Oil The quality series is excellent. The standard indicates that the level of acidity is less than 0.8%, and has been tested and found to be without defect in taste and quality. Olive oil that contains less than 0.3% is a refined olive oil called Refined olive oil.
Virgin Olive Oil, the basic series, is the olive oils in the cult series (without the “excellent”). The acidity level in the cult series according to the standard is 0.8% – 2%.
Ordinary virgin olive oil The basic series. Regular extra virgin olive oil. It is an olive oil whose acidity level is 2% – 3.3%. It is not forbidden to eat it, but the recommendation of the World Olive Organization is not to consume it for eating.
Virgin olive oil not fit for consumption Olive oils whose acidity level is higher than 3.3% belong to the category of olive oils that are not intended for eating, but for industry.
The European standard requires that the level of acidity be below 3%, a process that requires manufacturers to refine the oil and take further steps to improve it in order to enjoy a maximum price for the produced product.
Olive Time Survey (Photo: Daniel Malachovsky)In the past, there was a misconception that if we see an olive grove by the side of the road and a stand with gallons of olive oil next to it, then this is the most natural and high-quality product. It turns out that this is not the case: in recent years, many manufacturers have been exposed who marketed fake olive oils, mixed with poor vegetable oils with techniques to adjust the product’s color and taste and if you fell into the trap (or jug …). You may even have consumed olive oil that is not edible. The olive industry in the Plants Council has established standards and culture in the local market, similar to the conduct in Europe, and the public has also become increasingly vigilant and aware of the qualities of olive oils, knowing that there is a quality mark for Israeli olive oil and even international standards.
In recent years, consumption patterns of olive oil have changed considerably and not only in Israel, many studies have demonstrated the effect of various cooking programs and culinary nets from the culinary field on increasing consumption. But not only did they make an impact: the presentation of the benefits of olive oil in the health aspect was perceived as very significant, especially in the last decade, where various studies show benefits in helping to lower the likelihood of disease and stroke and even help diabetics.
Olive oil survey (Photo: Daniel Malakhovsky)Israel is on the rise
The combination of health and culinary has led to an increase in domestic production from 5,000 tons per year two decades ago to more than 18,000 tons per year. The demand in Israel is more than 25,000 tons, which require imports to meet it. The state has allocated defined production quotas as well as subsidies to reduce demand gaps and not to hurt local farmers and producers, so that local produce meets about 60% of demand. There are currently close to 100 local cloth houses in Israel. Most of the consumption is done in the food marketing chains in Israel under a number of well-known and well-known brands.
And despite the nice increase in olive oil consumption in Israel, we will not find a place on the podium: the Spanish consumer leads the consumption of oil per capita per year and stands at almost 25 kg per capita. The Greeks stand at about 15 kg per capita, and the Italians at 13 kg The Israeli consumer consumes an average of less than 4 kg of olive oil per person per year (the average in the Arab sector is 6 kg per year), one of the significant components in countries with a high consumption nature is the culture of frying olive oil, which has not yet penetrated kitchens. But with the surge in the prices of other vegetable oils, it may soon be worthwhile to fry in olive oil.) Although almost every home in Israel has canola oil, which is the leading oil in Israeli cuisine, surveys have found that close to 90% of households have olive oil.
The olive oil market is tough and tough. The small manufacturers and boutique manufacturers do not constitute a significant share and can not cope with the concentration that exists in the market with brands controlled by the giant companies, which we will meet in every supermarket. The leading company in the world of olive oil is the Spanish company DEOLEO. Other dominant companies in the global industry are: BORGES, SALOV and SOVENA.
Olive oil survey (Photo: Daniel Malakhovsky)The leading brand in the market is olive oil under the Yad Mordechai brand, which is marketed by Strauss. The second brand is Zeita, which is marketed by Wissotzky, and the third brand is the old olive tree of Shemen Industries, which was recently acquired by the Fortissimo Foundation, and it is still unclear whether it will produce Israeli or European olive oil in the future. Well-known brands are also filling in oil gaps, while the market does not allow them to meet quantities and demand. Olive oils under private labels of the retail chains.A brand that has grown greatly in recent years is its brother farm, which has also launched large packages for the home consumer, for example 5 liter oil cans alongside the standard products.
The Israeli consumer prefers a bottle with a volume of 750 ml and an excellent cult type, another priority is the consumption of Israeli production or at least an Israeli brand. The average price per liter of olive oil in Israel is NIS 46 per liter, more than 5.5 times the price of a liter of canola oil. For seasoning and cooking.How much will we pay for our olive oil in the marketing chains and where is the most profitable to buy it?
Olive oil survey (Photo: Daniel Malakhovsky)The author is the CEO of the Institute for Retail Research
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