According to market insights firm IRI, the past year has seen a shift in consumer perceptions about the olive oil market.
According to the IRI data, while the UK, France, Germany, Greece, Italy, Spain and the Netherlands have posted volume declines, the market value for European olive oil as a whole has risen to €3 billion.
Multiple Factors
According to Olly Abotorabi, Senior Regional Insights Manager at IRI this is the result of a combination of factors.
“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," he said.
Changing Habits
At the same time, Organic Olive Oil has grown by 37.4% in value and 17.5% in volume terms in the UK compared to last year, and Abotorabi notes that if the surge in prices continues, it could trigger a change in the habits of the consumer.
"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," he said.
"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% year-on-year, albeit from a smaller base, while lower prices for sunflower oil appear to be bolstering its fortunes, volumes up +10% year-on-year."
For more information on the European Olive Oil market, be sure to check out our latest issue of ESM,which provides in-depth coverage on that topic.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Matthieu Chassain. Click subscribe to sign up to ESM: European Supermarket Magazine.
