Some of the world’s largest olive oil producers and retailers joined a group of Andalusian agribusinesses and agricultural associations on their recent trade mission to Japan.
DCOOP and Jaéncoop, two of the world’s largest producers, bottlers and retailers of olive oil, joined Cooperativas Agro-Alimentarias, Spain’s main agricultural union, and several other prominent agribusinesses on an official tour to strengthen commercial ties and learn more about the Japanese social economy and its production system.
Japan is the world’s third-largest economy and an important trade partner for Spain. According to data from the Observatory of Economic Complexity, Japan was Spain’s sixteenth-largest export partner in 2021, the last year for which data are available.
See Also:Tracking the Rise of Olive Oil in Japan“Trade missions pursue two objectives: to strengthen the position of those cooperatives that already have businesses in the visited country and to open a new market for those that are exploring new destinations,” said Jaime Martínez-Conradi, the managing director of the Governing Council of Agri-food Cooperatives of Andalusia, which coordinated the visit.
Over the past three decades, olive oil consumption in the world’s eleventh most populous country has steadily risen from 4,000 tons in the 1990/91 crop year to 57,000 tons in 2021/22. However, annual olive oil production in Japan hovers around 600 tons.
As a result, trade officials in Spain believe there is plenty of potential for Spanish olive oil to increase its footprint in Japan over the long term.
According to a 2022 report from the Spanish Institute of Foreign Trade (ICEX), per capita consumption in Japan remains at 0.4 liters per annum, well below the average for Mediterranean countries. The International Olive Council estimates that 64 percent of the population consumes olive oil.
Spain is already the single largest source of Japanese olive oil imports. Data from Japan’s finance ministry show that the country imported 25,587 tons of olive oil in all of its fractions in the first half of 2023, with 55 percent of those imports coming from Spain.
Meanwhile, data from Spain’s trade ministry show that producers in Andalusia exported 4,469 tons of olive oil in all of its fractions to Japan in the first five months of 2023.
A report from Extenda, the Andalusian government’s office of exports and foreign investment, found that olive oil makes up more than half of the autonomous community’s annual agricultural exports to Japan, valued at about €98 million.
“The olive oil market in Japan is very important for Spanish companies in the sector,” Mikel Forcadell Fernández wrote in the ICEX study.
His point was underscored by the significant presence of Spanish olive oil producers at a separate food and beverage trade event in Tokyo. Out of 86 Spanish attendees, there were 12 Andalusian olive oil producers and the Spanish Interprofessional Olive Oil Association.
However, simply showing up at trade events and hosting olive oil tastings with local sommeliers is only one part of a successful export strategy, ICEX found.
“To maximize the chances of success when penetrating or expanding into Japan, it is necessary to understand the particular characteristics of Japanese consumers and society as a whole,” Forcadell wrote.
The ICEX study made several recommendations to Spanish olive oil producers attempting to enter the Japanese market.
These included publishing information about olive oil’s health benefits on company websites in English or Japanese, advertising the organoleptic qualities of extra virgin olive oil as the reason for high prices, educating importers and distributors about olive oil to increase their knowledge and the chances they pass this on to perspective retailers and packaging olive oil in appropriate sizes and culturally aesthetic designs to catch the eye of Japanese consumers on crowded supermarket shelves.
Oro del Desierto, an award-winning producer from Almería, Andalusia, has exported olive oil to Japan since 2009. The company emphasized the need to focus on quality to succeed in the Japanese market.
“Japan is a country with a lot of potential for growth in extra virgin olive oil consumption; they have purchasing power and a culture focused on consuming quality,” the company wrote in a blog post. “This factor is much more important and valued by the consumer than in most existing markets.”
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