The African continent is in the midst of an olive oil revolution, with South Africa joining the party.
The country is becoming an increasingly important player in the international olive oil market, thanks to access to fertile soils, ample sunshine, and high-quality olives. South African olive oil is of excellent quality, owing primarily to its premium raw materials.
Olives used for oil are mostly harvested by hand, which leads to an increased level of flavor and aroma. South Africa’s olives are also high in antioxidants and polyphenols, which render them exceptionally healthy.
The country’s unique climate also plays an important role in its successful olive oil production. With an abundance of sun and rainfall balanced throughout the year, South Africa offers ideal conditions for ripening and developing olives. This, combined with the favorable soil quality, contributes to the superior flavor and aroma of the resulting olive oils.
The new boom in South African olive oil has been driven by enterprising local farmers and entrepreneurs, many of whom have expertise in other branches of the agricultural industry and have now shifted their focus to olive oil production. This has meant that olive oil production is now taking place on a significantly larger scale, leading to more quantity and variety in products.
South Africa’s olive oil market is on the rise, with demand booming as consumers look for healthier alternatives to cooking oils.
According to latest industry data, the market for olive oil in South Africa saw a 4.6% growth rate in the first quarter of 2018, compared to the same period last year. This increase in demand is backed by a growing appreciation for the health benefits of olive oil.
“Olive oil can contribute to reducing the risk of serious health conditions such as stroke, coronary heart disease, and some types of cancer,” Dr Maryke Labuschagne, a registered dietitian from Unilever South Africa states.
As a result, people are switching up their kitchen cupboards for healthier options. The rise of the ‘clean-eating’ trend is spurring on the uptake of olive oil.
Packaged goods manufacturer, Unilever, has been particularly keen to capitalize on this, rolling out new products endorsing the benefits of olive oil, such as its Olive Oil Beauty range.
South African olive oil manufacturers have also moved to cash in on the growing demand. Many now invest heavily in marketing, from television campaigns to online advertising, in an effort to tap into the ever-expanding consumer market.
This rising demand means older olive oil producers are now facing more competition from new entrants into the market. Some, like Gerrie Nel of Nel Olive Oil have seen their market share drop from over 50% to around 25%. Others, such as Laborie Olives, have had to diversify into new products such as flavored oils to appeal to modern tastes.
Industry experts believe the market for olive oil in South Africa is still in its growth phase. Despite increased competition, olive oil producers remain optimistic about the future, with experts predicting further growth in the months and years to come.