Olive groves in Italy have shrunk by 7.1% over the past decade, significantly impacting the country's olive oil production.
A new alarm has been raised regarding olive production in Italy, where olive groves have seen a 7.1% decrease over the last decade, according to a study by the Mediobanca Research Group. This reduction in grove area has had a detrimental effect on harvest yields, contributing to a sharp decline in Italy's share of global olive oil production. For the period 2024/2025, Italy's contribution to global production has decreased to 6.3%, down from 12.7% the preceding year, highlighting the serious repercussions of the shrinking olive acreage.
In contrast, global olive oil production has reached a historical peak of 3.6 million tons, showing a significant growth of 38% compared to the previous period after two years of stagnation. Spain, the leading producer worldwide, has witnessed a remarkable 51% increase, now accounting for 36.1% of the global total. Turkey and Greece have also reported impressive growth rates, with Turkey's production surging by 109.3% and Greece increasing by 42.9%, reflecting a shift in the competitive landscape of olive oil production and a troubling trend for Italian producers.
The Mediobanca analysis highlights that the limited supply from Italy is expected to have negative implications for prices, potentially driving up costs due to increased competition for available oil. As leading producers like Spain, Turkey, and Greece expand their output, Italian olive oil producers may struggle to maintain their market share unless they address the challenges posed by declining grove areas and adapt to the evolving market dynamics.
