Olive trees, from which olive oil is
extracted, are generally found in the Mediterranean countries such as Spain,
Italy and Greece. This oil is commercially manufactured by grinding olives and
extracting the oil from the olives it by chemical or mechanical process. Common
uses of olive oil are in making soaps, pharmaceuticals, cooking and cosmetics.
The different product types of olive oils are extra virgin olive oils, virgin
olive oils, refined olive oils and other miscellaneous varieties, depending on
the method of extraction. The increasing demand for olive oil in developing
countries like India, China and Brazil is one of the primary drivers.
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This is owing to the strong economic
growth and increasing awareness of health benefits among consumers, coupled
with a greater exposure to the western lifestyle, there seems to be an upward
trend in consumption of olive oil. In addition, countries like USA and
Australia are developing a national standard for grading olive oil. The global
standardization of olive oil is attracting more consumer demand for the
product.
Olive oil production is limited to
only some specific countries that fall under the Mediterranean belt such as
Spain and Italy among others. Pricing of olive oil fluctuates when production
or cultivation gets affected. This is one of the primary restraints for the
olive oil market. Malpractice of some producers to supply lower grade or
adulterated oil olive in the form of the purer extra virgin version and arising
due to unclear grading parameters is another main restraint for olive oil. In
addition, many retail suppliers cannot afford the expensive testing fees for
their products.
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