European olive oil producers seek alternatives to the American market

European olive oil exporters are looking for new markets as a potential tariff hike in the US could weaken their position compared to Turkey and Tunisia. While they are trying to expand their presence in Asia, particularly in India and China, experts say the slow adoption of olive oil in Asian cuisines will not offset the loss of sales in the US. Cultural food preferences remain a major obstacle to growing demand.

According to the US Department of Agriculture, the US imported $1.5 billion worth of olive oil from Italy, Spain and Greece in 2023. Total imports amounted to $2.2 billion, including $428 million from Turkey and Tunisia. In contrast, India, China, Japan and South Korea together imported $477 million worth of oil, less than a third of the three European countries’ exports to the US.

Christopher Clegg, a trade consultant in Malaysia, notes that Asian markets have limited potential. “What producers lose to tariffs in the U.S., they don’t make up for in Asia,” he told Olive Oil Times. China prefers peanut or soybean oil, India prefers ghee, and in Malaysia, which imported $8 million worth of oils in 2023, consumption is concentrated among European immigrants.

Even in Japan, where Italian cuisine is popular, olive oil has not become commonplace. “Japan is a stronger market, but an aging population is choosing traditional dishes,” Clegg said. In South Korea, premium oils are considered luxury goods, not mass-produced, making it difficult to grow demand.

Lower prices for European olive oil could help revive demand in Africa or Australia, but cultural preferences and small populations limit the potential. “Without the understanding of the benefits of olive oil as in the U.S., Asia remains a difficult market,” Clegg concluded.

Tags: EU, USA, olive oil