Which countries are the largest producers of Olive Oil?

In recent years, global olive oil production underwent significant volatility driven by extreme weather patterns, changing consumer trends and agricultural changes. World production in 2022 was approximately 2.7 million tonnes, representing an overall improvement but not a consistent trend . However, the 2023–24 crop saw a 12% decrease, producing approximately 2.83 million tonnes versus 3.21 million tonnes in 2022– 2023) followed by an anticipated recovery in 2024– 25 with 3.38 million tonnes of production, representing a 32% increase over the previous year.

This volatility is also symptomatic of wider market drivers: extreme climate events, increasing global demand, particularly in emerging markets, and international trade policies. In particular, olive oil is gaining popularity outside its original Mediterranean homes as a testament to health, versatility, and cultural value.

Global Export Landscape Overview

The world is covered in Mediterranean countries when it comes to oil exports. Spain remains the leading country in this. Only Spain accounted for about 36% of the world's olive oil exports and approximately USD 4.34 billion in 2023. Italy contributed USD 2.2 billion and had an 18.7% share of the imports. Greece brought in USD 1.26 billion, which is 10.7% of the total. In addition, Tunisia and Portugal spent above USD 1.1 billion each. In total, only these five countries cover close to 85% of the world's olive oil exports. Geographically, Europe stands still as the place for olive oil production, with IOC member countries in Europe producing over some 1.53 million tonnes in the 2023-24 financial year, an increase of 10% from the previous year. Other 872 500 tonnes outside Europe came from North African and Middle Eastern countries. While they do not produce olive oils in any significant volumes, Asia, North America, and Latin America serve as huge consumer markets for this product. On a notable front, the average price of imports in Asia for refined olive oil went as much as U.S. dollar 6,942 per ton in early 2025.

Growth Trends and Market Dynamics

Production rebounds after poor harvest years have been dramatic. Spain has rapidly increased output  by 28% to 854,000 tonnes. While Italy’s bumper crops have boosted the olive oil production by  36% to 328,500 tonnes. Portugal comes in third with an increase of 28%  with the total output figure of 160,900 tonnes . Turkey, outside Europe , steadily enhanced its estimated production to 340,000 tonnes in 2024–25, becoming the world’s second-largest producer, after Spain

Exporters with Declining Growth: Some producers witnessed significant declines. Greece fell down by 49% to 175,000 tonnes. Longer droughts and extended heatwaves in Mediterranean countries led to decreased production for Spain as well - production dropped from 1.49 million tonnes in 2021–22 to a tantalizing 666,000 tonnes in 2022–23, and then modestly rebounded to 851,000 tonnes in 2023–24 .

A Deeper Look at Olive Oil Categories and Market Segments

Olive oil comes in a range of quality grades designed to address different groups of consumers and price brackets. The first being extra virgin olive oil (EVOO), followed by virgin, lampante (not for human consumption), as well as refined olive oils. In fact, during the early months of the year 2025, the price differentiation among these classification groups varied from one producing country to another. For example, in Spain, the first cost per 100 kg for EVOO was €440.20, virgin oil was at €399, and a lampante oil fetched about €359.90. Italy was much more expensive with an EVOO price recording at €944.50 per 100 kg. All this highlights the higher market reputation of Italy's olive oil that is done according to stringent production standards.

Greece was in the cheap range offering EVOO at €468.50. Price differences not only reflect quality but also branding quality and geographical store preference. Extra virgin olive oil is still dominant in terms of premium worldwide use and well-regarded due to its nutritional value and flavor complexity, while pure and lampante oils are relatively widespread for industrial or low-cost markets.

Industry Challenges

While the olive oil sector has expanded internationally, it is beset with a number of serious issues. Most importantly, the market is plagued with price fluctuations largely attributed to varying harvest yields and increasing input costs. Particularly in Argentina, rising input and electricity costs have pushed total production costs to as high as €3,600 per ton--an amount for which many producers are unable to break-even. Climate change has been another extreme blow to the olive oil industry; prolonged droughts and heat waves combined with extreme weather events in the Mediterranean region, notwithstanding the impact of climate change have vastly altered traditional harvest periods, which have resulted in acute reductions in olives harvested.

Acute olive shortages have pushed producers to steal from open olive groves. As if that was not enough, restrictive trade policies and political instability have made a negative impact on the supply chains, which has led to much price fluctuation. Another source of stress is the export bans that Turkey, Morocco, and Syria have imposed on producers, which have led to price inflation.

Future Outlook

The future remains positive for the olive oil market and farmers remain optimistic. Following the harvest woes of 2023–24, global production is expected to recover sharply in 2024–25. The International Olive Council is forecasting a 32% increase, with worldwide production likely to be 3.375 million tonnes. At the same time, demand is expected to remain steady, especially in Asia, which is exploring olive oil as a result of higher awareness of health with lifestyle change.

Emerging economies have strong growth in income, rapid urbanization, and are producing a growing middle class. All these factors are increasing consumption. Retail and wholesale prices should stabilize, unless production returns to the supply chain in their pre-high input levels, but the unpredictable climate risk lingers as a long-term threat to both the supply chain and future generations of growers.

Regarding innovation, evolving sustainable practices and precision irrigation now provide interventions that growers can access to help mitigate environmental challenges. Strong branding and new market explorations and interventions give assurance that the next chapter for the global olive oil trade will be unique.