Virgin Olive Oil Imports Reach Highest Level in 13 Years
Canola Oil and Soybean Oil Remain Flat or Decline
[Asia Economy Reporter Choi Saeng-hye] With the spread of the well-being trend, the usage of olive oil has increased significantly. The consumption of ultra-premium oils such as avocado and truffle oil is also on the rise.
According to export-import trade statistics from the Korea Customs Service on the 12th, last year the import volume of "virgin olive oil," a representative premium edible oil, reached 13,992 tons. This marked the highest level in 13 years since 15,186 tons were recorded in 2006. The import volume of virgin olive oil has steadily increased, with 10,939 tons in 2017 and 13,419 tons in 2018. Even in just the first eight months of this year, it reached 11,075 tons, a 26.5% increase compared to the same period last year.
Industry experts predict that imports will increase further this year due to the rising demand for home-cooked meals amid the COVID-19 pandemic. According to the Korea Agro-Fisheries & Food Trade Corporation's Food Industry Statistical Information, the domestic retail market size for edible oils was approximately 311.2 billion KRW in 2018, down about 3.6% from 322.9 billion KRW in 2016. The domestic edible oil market is dominated by canola oil (35.7%) and soybean oil (23.0%), accounting for more than half of the market share.
The Korea Agro-Fisheries & Food Trade Corporation analyzed, "Due to the expansion of convenience food consumption and increased dining out, the use of edible oils at home is on a declining trend," adding, "Health trends aiming to use less oil in cooking and the spread of air fryers that require no oil likely also had an impact."
In contrast to the stagnation or decline of canola and soybean oils, retail sales of olive oil increased from 44.8 billion KRW in 2016 to 46.3 billion KRW in 2017 and 48.7 billion KRW in 2018. Accordingly, the domestic retail market share of olive oil also grew from 13.9% to 15.7% during the same period.
The Korea Agro-Fisheries & Food Trade Corporation explained, "Although most edible oil sales declined, sales of 'other edible oils' such as olive oil and avocado oil, mainly used in salads and pasta, increased," adding, "This reflects a change in consumer trends where the functionality of raw materials and cooking preferences are actively reflected in purchasing decisions."
Recently, the presence of various premium edible oils such as avocado oil and truffle (songro) oil has also been increasing. An analysis of edible oil search results by the Korea Agro-Fisheries & Food Trade Corporation from 2018 to this year showed that avocado oil, truffle oil, olive oil, as well as "MCT oil" (a plant-based oil extracted and enhanced from coconut oil fats) and "Hwahu" (chili oil with a smoky flavor) ranked among the top searches.
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