Italy Vegetable Oil Market Size to Reach USD 11.19 Billion by 2033 | With a 5.66% CAGR

Italy Vegetable Oil Market Overview

Market Size in 2024: USD 6.45 Billion

Market Size in 2033: USD 11.19 Billion

Market Growth Rate 2025-2033: 5.66%

According to IMARC Group's latest research publication, "Italy Vegetable Oil Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Italy vegetable oil market size was valued at USD 6.45 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 11.19 Billion by 2033, exhibiting a growth rate of 5.66% during 2025-2033.

How AI is Reshaping the Future of Italy Vegetable Oil Market

• •Precision Olive Farming: Italy's Liguria region launched an experimental project using smart sensors, AI, and drones to optimize olive farming operations. The initiative enables real-time soil and plant data monitoring, helping farmers improve productivity while combating olive fruit fly infestations more effectively through automated drone treatments.
• •Enhanced Oil Processing: Italian processors are adopting Industry 4.0 technologies including IoT and AI-driven automation to improve extraction efficiency and product consistency. These systems enable full traceability and compliance with strict EU food safety regulations while reducing operational waste.
• •Quality Control Innovation: AI-powered systems are transforming quality assurance across Italy's food processing sector, including vegetable oil production. These technologies expedite inspection processes, ensure consistent oil quality, and support the country's Protected Designation of Origin certification requirements.
• •Supply Chain Optimization: Italian agricultural companies are leveraging AI and blockchain platforms to provide end-to-end traceability for vegetable oils. These digital tools help verify origin, safety, and quality throughout the supply chain, crucial for maintaining premium market positioning.
• •Predictive Analytics: Processing facilities across Italy are implementing AI-driven predictive maintenance to monitor equipment health and anticipate failures before they occur. This reduces downtime and improves operational efficiency in both olive oil mills and general vegetable oil refineries.

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Italy Vegetable Oil Market Trends & Drivers:

The surge in demand for premium and organic vegetable oils has emerged as a dominant trend in Italy's vegetable oil market, driven by health-conscious consumers and the Mediterranean diet's global appeal, with olive oil leading at 70% of production. Valued at approximately USD 7.5 billion in 2025, the sector benefits from rising exports exceeding €3 billion, fueled by certifications like PDO and PGI that command 20-30% premiums, while e-commerce platforms expand access to artisanal EVOO in northern urban centers.

Rising sustainability mandates and bioeconomy initiatives represent a key driver, as Italy's National Bioeconomy Strategy (BIT II) invests €500 million in circular practices, promoting waste reuse from oil production for biofuels and reducing imports by 15%. This shift, supported by CAP subsidies for eco-farming, has propelled organic segments to 25% market share by 2030, appealing to affluent households prioritizing low-impact alternatives amid climate challenges in southern groves.

Urbanization and tourism growth are accelerating the sector, with Italy's 60 million visitors in 2025 demanding authentic, traceable oils in hospitality and retail, boosting domestic consumption per capita to 12 liters annually. Post-pandemic recovery and events like Expo legacies have spurred innovations in packaging and distribution, cutting logistics costs by 10% via digital chains and projecting a 2.9% CAGR to reach USD 9.2 billion by 2030.

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Italy Vegetable Oil Industry Segmentation:

The report has segmented the market into the following categories:

Oil Type Insights:

• Palm Oil
• Soybean Oil
• Sunflower Oil
• Canola Oil
• Coconut Oil
• Palm Kernel Oil

Application Insights:

• Food Industry
• Biofuels
• Others

Breakup by Region:

• Northwest
• Northeast
• Central
• South
• Others

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Italy Vegetable Oil Market

• April 2025: The Liguria region launched a comprehensive smart farming initiative deploying AI sensors and autonomous drones across olive groves. This technology enables precision treatment of individual trees, drastically reducing chemical drift and optimizing resource use while improving the quality of Riviera Ligure PDO olive oil production.
• June 2025: Italy's olive oil exports demonstrated remarkable resilience with extra virgin olive oil sales from January to April reaching 108,671 tons, representing a 26% increase compared to the same period in the previous year, despite facing production challenges from climate factors.
• July 2025: The Italian government allocated comprehensive support totaling over €164 million through various initiatives including €34.6 million from the Common Agricultural Policy strategic plan, €100 million for olive oil mill renovation, and €30 million to combat agricultural diseases, reinforcing the sector's sustainable modernization.

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