Jordan Olive Oil Market- Trend Analysis & Forecast to 2030

Jordan olive oil production reached ** thousand tonnes in 2023 and is projected to grow at a CAGR of **% from 2024 to 2030. Jordan, a key player in the olive oil industry, is renowned for its premium quality olive oil, primarily due to favorable climatic conditions and traditional harvesting methods. With increasing global demand for organic and high-quality olive oil, Jordan’s market is poised for robust growth. However, challenges such as fluctuating production levels and competition in global markets must be addressed to ensure sustainable growth.

Market/ Product Overview

Jordan’s olive oil market is an integral part of its agricultural sector and contributes significantly to the country’s economy. The market has witnessed steady growth due to increasing domestic consumption and export demand. Jordan is one of the oldest producers of olive oil, leveraging its rich history and expertise in cultivation. The market’s growth trajectory is influenced by government initiatives to enhance production efficiency and global trends favoring healthier dietary options.

In 2023, Jordan’s olive oil production reached approximately ** metric tons, with exports contributing around **% of the total production. Domestic consumption continues to dominate, driven by traditional culinary practices. The government’s focus on adopting sustainable practices and enhancing the branding of Jordanian olive oil in international markets is expected to further solidify its position in the global supply chain.

Jordan Significance in the Global Olive Oil Supply

Jordan occupies a strategic position in the global olive oil supply chain due to its high-quality production, supported by unique soil composition and climate. The country is part of the Mediterranean olive-growing belt, which accounts for over **% of the world’s olive oil production. Jordan’s emphasis on organic farming and sustainable practices aligns with global consumer preferences for premium products.

Additionally, Jordan’s proximity to major markets such as the European Union and the Gulf Cooperation Council (GCC) countries enhances its export potential. While the country’s share in global production is relatively small, its focus on quality over quantity gives it a competitive edge, attracting niche markets that prioritize authenticity and sustainability.

Jordan Olive Oil Supply & Demand Trend

Jordan’s olive oil production is characterized by cyclic variations due to the alternate bearing phenomenon of olive trees. The country has approximately ** million olive trees, predominantly of the Nabali and Rasei varieties, which are known for their superior oil quality. Olives are harvested manually to guarantee a high quality product and are processed in nearly 140 oil mills operating in Jordan.

Between 2015 and 2023, production ranged from ** to ** metric tons annually, with significant variations influenced by climatic conditions and agricultural practices. In 2023, production increased by **% compared to the previous year, attributed to favorable weather and improved farming techniques. Government initiatives, such as subsidies for modern irrigation systems and the promotion of organic cultivation, have played a crucial role in boosting production.

The majority of Jordan’s olive oil production is concentrated in the northern governorates, including Irbid and Ajloun, where optimal conditions for olive cultivation prevail. Investments in advanced processing facilities and quality control measures have further enhanced the market’s growth prospects.

Domestic demand for olive oil in Jordan is deeply rooted in the country’s culinary and cultural traditions. Olive oil is a staple in Jordanian households, used extensively in dishes like mansaf and as a dipping oil with traditional bread.

On average, per capita olive oil consumption in Jordan stands at approximately ** liters annually, one of the highest in the region. This demand is driven by consumer preferences for natural and unprocessed oils. Additionally, rising health awareness has bolstered olive oil’s popularity, especially among younger demographics seeking healthier dietary options.

In 2023, domestic demand accounted for nearly **% of the total production. The trend is expected to remain stable, with gradual growth anticipated due to increasing urbanization and changing dietary habits. However, affordability challenges for lower-income groups may pose limitations on domestic market expansion.

Market Growth Factors

Jordan’s olive oil market growth is driven by several factors, including the rising global demand for premium and organic olive oil. The country’s strategic location provides access to key export markets, while government policies supporting sustainable agriculture and technological advancements in processing enhance production efficiency. Additionally, Jordan’s commitment to maintaining high-quality standards and branding initiatives for its olive oil further strengthens its market position. Consumer trends favoring healthy lifestyles and natural products also contribute to market growth.

Market Restraints & Challenges

Despite its strengths, the Jordan olive oil market faces challenges such as fluctuating production levels due to climatic variability and the alternate bearing nature of olive trees. High production costs, limited access to advanced technology for small-scale farmers, and intense competition from major olive oil-producing nations like Spain and Italy further hinder growth. Additionally, logistical challenges and trade barriers in key export markets can restrict market expansion.

Jordan Olive Oil Industry: Supply Chain Constraints & Value Chain Challenges

The Jordanian olive oil value chain encounters bottlenecks at multiple levels, including inefficiencies in harvesting methods, limited access to modern processing facilities, and inconsistent quality standards among small-scale producers. Fragmentation in the supply chain and reliance on traditional distribution networks also impede market efficiency. Addressing these challenges through investment in technology, infrastructure, and capacity-building programs is crucial for ensuring a seamless supply chain.

Jordan Influence on Global Olive Oil Prices

Jordan’s ability to influence olive oil prices is limited due to its relatively small share in global production. However, the country’s emphasis on premium and organic segments allows it to command higher prices in niche markets. Price setting is influenced by factors such as production costs, international demand, and competition from larger producers. Government interventions and support for branding initiatives can further enhance Jordan’s pricing power.

The historical price trend of Jordanian olive oil reflects significant fluctuations driven by production cycles and global market dynamics. Between 2015 and 2023, export prices ranged from US$ ** to US$ ** per liter, with premium organic variants fetching higher prices. Wholesale prices in the domestic market also varied, influenced by annual production levels and consumer demand. In 2023, export prices experienced a **% increase due to reduced global supply and heightened demand for organic olive oil. Olive oil prices in major producing country Spain increased by 32.8% in 2023-24 over 2022-23 (for extra virgin olive oil).

Olive Oil End-Use Industries

Jordan’s olive oil market is diverse, offering products such as extra virgin, virgin, and refined olive oil. Extra virgin olive oil dominates the market due to its superior quality and health benefits. The primary end-use industries include:

■ Food & Beverage: Olive oil is a key ingredient in cooking, dressings, and marinades.
■ Cosmetics & Personal Care: Olive oil’s moisturizing and antioxidant properties make it a popular choice in skincare and haircare products.
■ Pharmaceuticals: It is used in medicinal formulations for its anti-inflammatory and digestive benefits.
■ Industrial Applications: Olive oil by-products, such as pomace, find applications in biofuel production and animal feed.

Jordan Olive Oil Trade (Export & Import) Trend

Jordan’s olive oil trade is characterized by a strong export-oriented focus. In 2023, exports accounted for approximately ** metric tons, targeting key markets in the GCC, Europe, and North America. The country’s high-quality olive oil appeals to consumers seeking authentic Mediterranean products.

Imports are minimal, primarily to meet domestic shortfalls during low production years. The government’s emphasis on branding and quality certification has enhanced Jordan’s reputation in global markets, supporting steady growth in export volumes. However, competition from larger producers remains a significant challenge.

India Lentils Market Competitive Analysis

The Jordan olive oil market is highly fragmented, with a mix of large-scale producers and small-scale farmers. Key players focus on quality enhancement, branding, and expanding export networks to maintain competitiveness. Collaboration with international certification bodies ensures adherence to global standards, boosting market credibility.

List of Key Companies (Suppliers/ Processor/ Exporters),

■ Al Jabal Olive Oil
■ Al Tazaj Olive Oil Factory
■ Golden Olive Oil Company
■ Olive Harvest Co.
■ Jordanian Olive Oil
■ Al Barakat Farms
■ Dr. Fayez Sabri Jaber Farms

Future Outlook

The Jordan olive oil market is expected to grow steadily, driven by increasing global demand for high-quality and organic products. Investments in sustainable agriculture, technological advancements, and branding initiatives will play a pivotal role in enhancing market competitiveness. By addressing supply chain inefficiencies and exploring new export markets, Jordan can solidify its position as a premium olive oil producer on the global stage.