The rising per capita income and changing consumption patterns towards healthier and safer food . Olive oil is currently considered in Indian markets a high quality alternative to other edible oils and fats, Although a big portion of consumers consider olive oil as a nonessential product, for which demand tends to be more price and income elastic than in the traditional consuming countries
This cause a long- run shift in consumption to other types of oils and/or to lower quality and cheaper categories of olive oils as the trend is going on. Since olive oil tends to be mostly consumed in production areas, external trade still concerns an average of less than 20% of world.
Olive oil demand has potential to grow from a low base in emerging markets. Trade flows show very high growth and potential in Indian markets too but consumption is very limited as consumers are only gradually becoming aware of the different applications for olive oil .
At present emerging markets account for 7% of total volume and 16% of global value. But there seems to be a rather wide scope for increasing demand by adequate marketing measures . There is a potential for the improvement of the coordination of promotion activities When promoting olive oils in India or non- traditional consumer markets, it is advisable to give consumers simple, clear explanations and suggestions for potential product uses.
Tunisia is good emerging Producer in this trade world wide its production has increased 400% relative to consumption over the last decade. Tunisia in particular has diversified its export destinations and reduced its share of exports to Italy from 81% to 38% this country is having high potential for growth in India.