From waste to wellness: Could an olive oil byproduct revolutionise the gluten-free market?

The global olive oil industry faces a significant challenge: only about 15% of each olive is converted into oil, leaving the remaining 85% as waste, known as pomace. This byproduct rapidly oxidises, creating open ‘olive oil waste pools’ that pose serious environmental and logistical challenges.

The numbers underscore the urgency of this issue: annually, global olive mill wastewater production is estimated between 10 and 30 million cubic metres, with total olive oil waste biomass potentially reaching 40 million tons. This waste is generated over a concentrated three- to four-month production season – October to January in the Northern Hemisphere; April to July down south – creating an overwhelming environmental burden on mills, local ecosystems and surrounding communities.

Recognising this, Israeli startup PhenOlives sought a solution that would not only reduce the environmental footprint but also bring value back into the production cycle.

“Our inspiration to address the challenge of olive mill waste arose from the immense scale and impact of this problem,” CEO Chen Lev-Ari told Bakery&Snacks.

“We aimed to develop a solution that benefits both the environment and the food industry.”

Tackling olive mill waste: The genesis of PhenOlives​

Over three years, PhenOlives developed a patented, chemical-free mechanical process that integrates seamlessly into existing olive milling operations. This process separates the pomace into its constituent parts – seeds, pulp and black water – preventing oxidation and preserving nutritional value. The pulp is then dried and milled into a flour that is gluten-free.

“Our technology is unique in that it halts the oxidation process, which is a major hurdle in utilising olive waste. And as far as we are aware, PhenOlives is the only company in the world that has a solution for stopping oxidisation in the olive oil production process,” said Lev-Ari.

“By installing our machinery directly in olive mills, we can efficiently convert waste into a high-fibre, low-calorie flour suitable for various food applications.”

The seasonal nature of olive harvesting, however, presented a significant challenge, as raw materials are available only a few months each year.

“One of the primary challenges in developing the olive pomace flour process is the seasonal nature of the olive harvest,” Lev-Ari told this site.

“The raw material is only available for two to three months a year, necessitating a concentrated development effort during this limited window.”

To mitigate this, the PhenOlive team implemented methods to maintain momentum between harvests.

“While techniques such as freezing components and conducting off-line processes post-season can mitigate some of the challenges, the optimal approach involves concurrent development and production to achieve the best results,” he added.

“This breakthrough not only mitigates waste but also augments efficiency and sustainability within the olive oil production value chain, representing a significant advancement in agricultural innovation.

“Through this process, the seeds can be repurposed for heat and energy production, while the pulp is transformed into olive flour, with further products in development. Nutrients are extracted from the black water, which will also contribute to future product lines. Currently, PhenOlives’ primary product is olive flour, designed to bring the health benefits of olive-based nutrients to consumers in an innovative and sustainable way.”

By converting nearly all olive waste into usable products, the company – which is headquartered at the InnoValley Innovation Center in the Beit She'an Valley – is reducing environmental pollution while promoting resource efficiency.

“Our process involves valorising each part of the olive, thus reducing almost 100% of the waste the olive mill needs to dispose of,” explained Lev-Ari.

“It means less contamination through burning or any other disposal methods. In addition, not a single new olive needs to be grown in order to make olive flour, and that waste is turned into a valuable byproduct.”

Strategic partnerships with European olive mills

PhenOlives is actively engaging with olive mills across Europe, particularly in major olive-producing countries like Spain, Greece, Italy and Portugal.

“We are currently in advanced stages of discussions and hope to share more news in the coming weeks,” revealed Lev-Ari.

“Our strategy is to collaborate with olive mills, which in time will turn into olive processing facilities, rather than olive oil producers.”

Olive flour boasts a high fibre content and low calorie count, making it an attractive option for health-conscious consumers. It’s also rich in polyphenols: antioxidants known for their health benefits. Suitable for baked goods like bread, crackers, cookies, brownies, muffins and pasta, the gluten-free flour is also proving to be a boon for the better-for-you sector.

“In terms of nutrition, olive flour is rich in fibre and low in calories, making it a suitable replacement for some of the carbohydrates in a recipe – in addition to being gluten-free,” said Lev-Ari.

“We’re working with local chefs in Israel and Europe to develop a range of new recipes using olive flour and we’re receiving excellent feedback,” shared Lev-Ari.

“The neutral taste of olive flour makes it an extremely versatile ingredient in cooking, allowing it to blend well with other traditional flours.”

Various proportions of can also be substituted for traditional flour: up to 100% olive flour in crackers; 50% for pasta; 30% for cookies; and 20% for breads.

“At low percentages – up to 10% – it primarily adds subtle flavour notes without significantly altering the texture or nutritional composition. As the percentage increases – up to 30% – the texture becomes denser and crumblier, and the olive flavour becomes more pronounced.”

Olive flavours has gained attention in recent years, particularly in the beverage industry. In early 2024, Starbucks introduced the Oleato line, infusing olive oil into coffee drinks. Due to negative feedback regarding texture and taste, however, these drinks have been discontinued.

Simultaneously, some bars and restaurants have experimented with olive oil-infused cocktails, such as the Olive Oil Martini. But it’s in the culinary world that’s its really taken flight and flavoured olive oils have seen a rise in popularity.

A major advantage for the gluten-free sector – often lambasted as products are typically more costly than their traditional counterparts ​​due to the speciality of ingredients and processes – is the price. Thanks to the cost-effective production model, PhenOlives anticipates the olive flour will be on a par with – if not below – other affordable gluten-free options.

“We anticipate the price for olive flour will rival that of economical gluten-free alternatives, like rice flour,” said Lev-Ari.

“Our assumptions are based on the fact that once our machine is installed in olive mills, the raw ingredient – olive waste – is upcycled from the production of olive oil.”

Setting a new standard for sustainable products

PhenOlives has initiated several pilot projects and collaborations to explore the potential of olive flour.

“While we have numerous pilots and partnerships with Israeli and European food producers, we continue to look for additional opportunities to partner with others in Europe to develop new recipes that show how we can bring the functional benefits of olive flour to consumers,” he said.

The team is also investigating additional uses for the olive pulp and ways to utilise the nutrient-rich black water.

“Alongside our olive flour-based food products, we are exploring the use of olive pulp to create a range of products, including food additives, colorants and even pet food,” said Lev-Ari.

“We also want to leverage the rich nutritional content of the olive black water, which is abundant in polyphenols, squalene and fibre.”

But, while the European market has shown enthusiasm for PhenOlives’ innovation, scaling production presents challenges.

“The European market aligns well with the growing consumer demand for healthier and more sustainable food options, which is encouraging for us. However, challenges remain, such as raising consumer awareness about the benefits and usage of olive flour.”

PhenOlives plans to meet these challenges head-on – with new products and collaborations with culinary professionals to showcase the gamechanging flour.

“Our mission is to create products that offer health and taste benefits while making a positive environmental impact,” emphasized Lev-Ari.

“We’re not just solving a waste issue; we’re contributing a valuable, nutritious ingredient to the market.”

By turning a longstanding environmental challenge into a win-win solution, PhenOlives is at the forefront of providing producers with a unique opportunity to meet the growing demand for sustainable, health-conscious ingredients in the gluten-free market.

“This is just the beginning,” said Lev-Ari.

“We’re excited to bring olive flour and other products to more consumers, helping them enjoy nutritious, eco-friendly foods that make a difference.”