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.
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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.
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.
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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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