Market Size – Supply and Consumption
Study on the promotion of consumption of olive oil and olives in the
USA and Canada
© Datamonitor Ltd. 2010
Foodservice Landscape – Table Olives
Similarly to the retail table olive market, the foodservice market in the USA is in decline, while the
Canadian market continues to grow – albeit slowly. Unlike the foodservice market for olive oil
however, the consumption drivers for table olives are more difficult to directly influence.
The foodservice market in the USA and Canada for table olives absorbs 72 per cent and 40 per cent of all
consumption volumes respectively, representing nearly 149,000 tonnes per annum. However, as with the
retail market, volumes are declining in the USA and rising slowly in Canada. The US will lose nearly 11,000
tonnes in volume by 2013, declining at an average annual rate of two per cent per annum, a rate of decline
that has remained steady since 2004, when nearly 153,000 tonnes of olives were used in foodservice
preparation in the country. Further, the increase in volume in Canada will not compensate for the losses in
US consumption as only a further 400 tonnes will be added over the next five years.
The reasons for the decline in table olive consumption in foodservice mirror in part the reasons for decline in
retail sales of table olives. Effectively, the change in the demographic make up of the USA is actually having
a bigger influence on the foodservice industry than it is on the retail market. This is because foodservice
operators are generally quicker to change menus, formats and offerings to cater to demographic and ethnic
requirements than are retailers. For example, a rise in the Hispanic population in a community will lead to a
rise in outlets that will cater to the needs and tastes of that community, either through investment being
made directly by members of the community to service its own population, or through a change in menu
options and formats being offered by existing restaurants. As olives are not common ingredients in Latin
American dishes, shifts in menu offerings of this nature inevitably lead to declines in volumes of olives being
used.
Another example can be found in the pizza market. Flavours and toppings offered by the leading pizza
companies such as Dominos and Pizza Hut also change to reflect the demand of their customer base. This
results in the removal or less demand for traditional Italian pizza offerings in favour of Latin American
inspired choices such as Mexican or chilli based toppings. Additionally, many pizza outlets, be they full
service, quick service or takeaway, allow consumers to customise their own pizzas. Given that 40 per cent
of consumers do not like the taste of olives, the ability to be able to avoid their consumption, rather than go
through the ritual of picking the olives from the cheese and placing them on the side is appealing. This, of
course, also leads to a decline in olive usage and purchases by pizza companies.
At the high end of the market there has certainly been an increase in olive usage as many restaurants now
provide as a matter of course Mediterranean inspired courses, such as Greek salads and other Italian,
Spanish and Greek inspired dishes. An increase in the number of Middle Eastern and Turkish full service
outlets has also played a part in this trend as well. In the quick service market, especially in major urban
areas, there are also increasingly a number of salad based outlets, such as Salad Spinners, that are being
set up to provide healthy lunch solutions to office workers. As part of the standard menu offering provided by
these outlets there is usually a Greek salad, but as with the pizza industry many of the menu selections are
customisable by the consumer. As such any increases in olive consumption are minimal, particularly if it
means that consumers are in fact eating less pizza as a trade off for an improvement in diet.
The traditional third major use of olives in foodservice in the USA was the bar industry, for inclusion in that
iconic of American cocktails, the martini. However, consumption of martinis in their classic form has declined
in recent years, with the drink being perceived as being old-fashioned particularly among younger