80 CULTIVAR ANALYSIS AND PROSPECTIVE STUDIES No. 35 Olive groves and olive oil Table 1 − Technical indicators providing an overview of the olive oil sector in Portugal and worldwide Indicator Value / ranking Source Olive grove area in Portugal 380 779 ha GPP (2025) Area of olive groves used for olive oil production 374 226 ha GPP (2025) Share of olive groves in the national UAA around 10% GPP (2025) National production 2024/2025 177,000 t; 6th largest producer worldwide; 4th largest producer in the EU GPP (2025) National forecast 2025/2026 160,000 t GPP/SIMA (2026) National production 2021/2022 206,000 t; an all-time high in recent records Casa do Azeite (n.a.) National exports 2024 1.6 billion euros; trade surplus of 974 million euros GPP (2025) Projected global production 2024/2025 3.375 million tonnes Casa do Azeite (n.a.); COI Projected global consumption 2024/2025 3.065 million tonnes Casa do Azeite (n.a.); IOC ‘Water that Unites’ Strategy around 300 measures; potential for over 1,000 million m³ of additional available water Government of Portugal (2025) EU funding for agri-food promotion 2026 €205 million in total; up to €160 million in grants European Commission (2025); GPP (2026) Note: Figures presented are based on the sources indicated and the campaigns available at the time of consultation. The challenge for the coming decade will be to turn scale into value: further distinguishing Portuguese olive oil and protecting its authenticity, promoting all types of olive groves, consolidating sustainable practices and opening up new markets. This text identifies the main challenges and opportunities facing the sector and proposes strategic lines of action to ensure competitiveness, sustainability and territorial cohesion in the medium to long term. 1. Context: a sector undergoing structural change Over the last two decades, Portugal has established itself as one of the world’s most dynamic oliveproducing countries. The Portuguese olive sector has modernised, increased productivity, incorporated irrigation, technology and expertise, and benefited from technically advanced mills. The GPP notes that, over the last 20 years, olive production has increased by around 300 per cent, in a process that has not merely involved producing more, but also producing better, with a large proportion of domestic olive oil classified as extra virgin (GPP, 2025). In the 2024/2025 marketing year, Portugal was the world’s sixth-largest olive oil producer and the fourth-largest in the European Union, with 177,000 tonnes, and consolidated its position as the world’s fifth-largest exporter and the EU’s third-largest, with exports worth 1.6 billion euros and a trade surplus of 974 million euros in 2024 (GPP, 2025). These figures confirm that olive oil is now a strategic agri-food sector for the country, given its economic, territorial, environmental and reputational significance. 2. Global production and volatility: the new competitive landscape Global olive oil production remains concentrated in the Mediterranean basin and is heavily exposed to soil and climate conditions. Casa do Azeite, based on data from the International Olive Council, estimates a recovery in global production to 3.375 million tonnes in 2024/2025, following the declines in 2022/2023 and 2023/2024, seasons in which global production stood at 2.760 and 2.564 million tonnes, respectively. In the European Union , Portugal is projected to produce 177,000
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