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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