Olive oil—the heart-friendly choice that never compromises your health: Bonafide Research

Foods are getting healthier, so why spoil your health with unhealthy oil? Let’s shift to the oil of olive. Indian consumers are getting healthier, so is their food intake. The traditional way of cooking through oil and ghee is transforming, and the adoption of olive oil in consumers' diets has been increasing. The younger generation is conscious of health; therefore, there is a growing demand for healthy food products in India. Olive oil is considered a healthier edible oil compared to other vegetable oils because of its rich source of MUFA (Monounsaturated fatty acids), which is a proven healthy fat for the human body. In the past few years, consumption of olive oil has grown positively. In 2012, consumption of olive oil per capita was only 0.01% of the total oil consumption in India, but in 2016, it increased to 0.04% and has been steadily growing year by year. Increasing awareness and health consciousness among consumers, along with growing urbanization, have contributed to the adoption of olive oil. Since olive oil is a premium product, companies are mostly targeting metro cities, increasing retail outlets and responding to rising demand.

According to the report "India Olive Oil Market By Value & Volume, By Segment (Industrial & Retail), Market Size By (Value, Volume), By Type (Extra Virgin, Pomace, Refined), By Sales Channel (Modern Retail, Direct Sale, General Trade, Online), By Company (Borges, Deoleo, Cargill, etc.), By Pack Size (0-250g, 251-999g, 1000-1999g, etc.), By Packing Type (Dark Green Glass, Transparent, Glass Bottle, etc.), By Demographics (Urban, Rural), By Application (Pharmaceutical, Food Industry, Personal Care), Outlook (Trends & Forecast), 2027-28" published by Bonafide Research, the Indian olive oil market is expected to grow at a CAGR of around 8% in terms of volume and at a CAGR of above 14% in terms of value. The olive oil market is segmented into three types: Extra virgin oil, Refined oil, and Pomace. Refined olive oil, which consists of pure as well as extra light olive oil, holds the largest part of the retail olive oil industry. Refined olive oil has a higher smoke point than regular or extra-virgin olive oil, so it can withstand hotter temperatures before breaking down and is best suited for use in baking or types of cooking where neutral-tasting oil is needed. Extra virgin olive oil, the most expensive type in the olive oil category, holds the second-largest portion of the retail olive oil market. Extra virgin olive oil is the purest, containing a high amount of vitamins, and is unrefined, but due to its lowest smoking point, it is unfit for cooking and is widely used as a condiment or for massage purposes. Pomace oil is mainly used for cooking but has fewer benefits because it undergoes chemical modification during processing. It holds the lowest market share among the three olive oil types. Olive oil is widely regarded as the best alternative to regular cooking oils, which are associated with various health issues. It is rich in healthy monounsaturated fats, has a large number of antioxidants, and possesses strong anti-inflammatory properties that help prevent strokes and protect against heart disease by controlling bad cholesterol levels and increasing good cholesterol.

Most importantly, olive oil does not contribute to weight gain or obesity; it is a natural juice with better taste, aroma, and enriched vitamins. The olive oil trade has seen a shift from industrial to retail because of its growing availability and demand. The usability of olive oil has expanded from being a massage and salad dressing ingredient to becoming a widely used cooking oil. Indian kitchens have significantly benefited from this transformation, allowing consumers to move toward healthier alternatives. However, some challenges persist in the Indian market, such as high pricing. Olive oil is a superior product due to its health benefits, and while its pricing is similar to other edible oils, additional import costs, such as shipping charges, excise duties, and other customs clearance-related fees, increase its price. Exchange rate fluctuations also play a critical role in determining olive oil prices. If production is low and the Indian rupee depreciates, consumer prices will rise further. In the previous year, the finance minister had increased the duty on extra virgin olive oil from 12.5% to 30% and on refined olive oil from 20% to 35%. The Indian market is entirely dependent on olive oil imports, and with high prices and the product being premium, its demand is still primarily restricted to metro cities due to limited awareness in other regions.

Olive oil companies competing in the Indian market include Deoleo, Borges India, Field Fresh Foods, Cargill, Universal Consumer, Manisha International, Modi Naturals, Jindal India Private Limited, and others. These companies offer brands such as Figaro, Borges, Del Monte, Leonardo, Bertoli, Colavita, Oleev, Farrel, and Solasz.