Market Trends of Africa Olive Industry
Rising Demand for Olive Oil Boosts Production in Africa
As demand for olive oil surges, Africa is ramping up its olive production. This uptick can be attributed to heightened health awareness, evolving dietary preferences, and challenges faced by traditional olive oil powerhouses like Spain and Italy, grappling with climate change and drought. These challenges have paved the way for African nations to bolster their olive output. For instance, according to FAOSTAT, Africa's olive production jumped from 4.23 million metric tons in 2021 to 5.27 million metric tons in 2022.
Extra virgin olive oil, celebrated for its heart-healthy monounsaturated fats, has garnered attention for its health benefits. Studies highlight its ability to combat inflammation, reduce LDL cholesterol, and enhance heart health. The Mediterranean diet, which prominently features olive oil, has further fueled its popularity. As consumers become more informed about olive oil's potential in mitigating chronic diseases—ranging from heart ailments to certain cancers—the demand continues to swell. Moreover, the Mediterranean diet's endorsement for longevity and well-being, amplified by media, nutritionists, and health experts, has solidified olive oil's esteemed status.
There's been a pronounced shift towards natural, organic, and unprocessed foods in recent years. Extra virgin olive oil, with its minimal processing, resonates with health-conscious consumers, especially in developed nations are willing to invest in organic and wholesome food. Additionally, as plant-based diets gain traction and the consumption of animal fats declines, olive oil emerges as the favored plant-based fat. Those distancing from butter and animal-derived oils are increasingly embracing olive oil for its health and ethical advantages.
Morocco Dominate the Market in the Region
Morocco stands out as the dominant force in Africa's olive market and plays a pivotal role on the global stage. The Mediterranean climate, especially in regions such as Meknes, Fez, and Marrakesh, provides ideal conditions for olive cultivation. With mild winters and hot, dry summers, Morocco offers the perfect environment for olives to thrive.
In 2022, the Moroccan government, a staunch advocate for the olive industry, launched initiatives like the "Green Morocco Plan." The Ministry of Agriculture reported a 21% increase in olive production in 2022, attributing it to favorable climatic conditions, including 309 millimeters of rainfall, and a rise in olive oil plantations aligned with the Green Generation plan for 2020-2030. Olive oil exports reached a notable USD 41 million, marking an increase from the previous year. The plan's key components encompass expanding olive-growing areas, enhancing irrigation systems, and providing robust support to farmers. Recently, Morocco has made significant investments in its olive orchards, with land dedicated to olive cultivation surging to an estimated 1.2 million hectares. This expansion, combined with modern farming techniques, has significantly bolstered the nation's olive yields.
Consistently ranking among the top five global olive producers, Morocco produces around 200,000 to 300,000 tons annually. A substantial portion of this is exported to key markets in Europe, North America, and the Middle East, especially as European producers face droughts and declining yields. Morocco also exports table olives, which are popular in many regions. For instance, according to FAOSTAT, a rise in olive exports from Morocco was witnessed, jumping from 22 metric tons in 2021 to 23 metric tons in 2023.
