The Opportunities and Challenges of Colombia’s Olive Oil Market

Olive oil consumption in Colombia, Latin America’s fourth-largest economy, has nearly doubled over the past five years, rising from four million liters in 2019 to 7.6 million liters in 2024.

“Olive oil used to be seen as a home remedy…. Now people understand that extra virgin olive oil should be part of their daily diet.”– William Cortés, Frutalia

Despite the increase, olive oil still accounts for only 1.7 percent of total edible oil consumption. Soybean, sunflower and palm oil—some produced locally—account for nearly half of all consumption.

“Palm oil still dominates in restaurants and the food industry, but olive oil consumption is clearly growing,” said William Cortés, the sales director of Frutalia.

Cortés, who imports extra virgin olive oil from Spain and produces small quantities in Colombia, said the change has been evident in supermarkets.

Retail shelf space for olive oils has expanded quickly, shifting from white-label brands sourced from major bottlers in Spain and Italy to proprietary labels from Argentina, Chile, Greece and Spain.

“Consumption has risen significantly for health reasons, especially during and after the Covid-19 pandemic,” Cortés said, noting the influence of television programs such as MasterChef.

“Public perception has changed, too,” he added. “Olive oil used to be seen as a home remedy—something for kidney stones or to drink on an empty stomach. Now people understand that extra virgin olive oil should be part of their daily diet, not an occasional treatment.”

Antonio Muñoz, chief executive of AOVEColombia, also linked the surge in demand to growing interest in healthy foods.

“In just five years, the perception has completely changed,” he said. “Now they see that olive oil is good for everything—for health, for the skin.”

AOVEColombia, which supplies high-end restaurants and hotels, launched operations in 2021. Muñoz said demand has remained strong even as prices at origin hit record highs in 2023 and 2024.

“The chef always chooses extra virgin olive oil because it makes his dishes outstanding,” he said. “They use it as part of the dish itself, not just as a means to prepare it.”

Still, Muñoz and Cortés agree that limited consumer knowledge remains the biggest challenge for importers.

The Spanish Institute for Foreign Trade (ICEX), which identifies Colombia as a strategic market for Spanish exporters, has also emphasized the need for more comprehensive consumer education and enhanced market penetration.

“Most Colombians don’t yet know how to recognize a fresh oil,” Cortés said. “A true extra virgin olive oil should have a grassy aroma, a fruity flavor and a pleasant bitterness or peppery finish. Many oils sold here smell rancid, meaning they’re no longer fresh or were stored too long.”

Muñoz noted that slow supermarket turnover often leaves shoppers with bottles from previous harvests rather than the most recent one.

“You have to show people what fresh olive oil is, because the big problem in Colombia is the lack of product turnover,” he said. “As a result, the oil goes rancid. It’s rare to find a bottle on the shelf that still has that fresh touch.”

Muñoz has focused on educating chefs about cooking with olive oil, often beginning by dispelling myths, such as concerns about the smoke point.

For now, olive oil consumption is concentrated in Bogotá, Medellín and Cali, home to about a quarter of the country’s population.

Both importers expect challenges in expanding the market due to the high cost of olive oil relative to other edible oils.

They said importers pay a 19 percent tax to legalize olive oil upon arrival at the ports of Barranquilla or Cartagena, plus an additional 19 percent value-added tax on sales to restaurants, retailers, and consumers.

Transport adds further cost. Colombia lacks rail links between its port cities and its major consumer centers in the Andes. Goods move entirely by road, often along routes in poor condition.

Muñoz estimated that a container can take 24 hours to reach Bogotá from Cartagena, a journey of nearly 1,000 kilometers.

“Logistics are also a major issue,” Cortés said. “For example, it costs more to ship a container from Bogotá to Cartagena than from China to New York. Everything moves by road, the infrastructure isn’t great, and the distances are long. That affects our competitiveness and our costs.”

While Muñoz views chef education as essential for understanding the health benefits and sensory qualities of olive oil, Cortés focuses on consumers through tours of his groves and mill.

“Through our tourism project, we teach visitors to recognize fresh olive oil through tastings and guided sessions,” he said. “Finding high-quality oil in Colombia remains difficult; sometimes even the same brand varies from one harvest to the next. But interest is growing, and we believe consumption will continue to rise.”