The global olive oil market is showing signs of recovery after a tumultuous period. Deoleo, the world’s largest olive oil producer, reports a positive outlook following two years of poor harvests and record-high prices. A significant increase in olive production, particularly in Spain, has led to a substantial drop in raw material costs and a subsequent decrease in olive oil prices at supermarkets. This positive shift is a welcome change after a challenging period marked by climate change-related extreme weather, high interest rates, and inflation, which created a perfect storm impacting the entire olive oil value chain.
The bumper harvest, especially in Spain, the EU’s largest producer, has been instrumental in restoring market confidence. Spain’s Ministry of Agriculture reported a 65% increase in olive oil production in the 2024/2025 crop year compared to the previous year, reaching 1.41 million metric tons. This substantial increase has directly translated to a 50% decrease in raw material prices, allowing Deoleo to lower prices for consumers.
Deoleo’s CEO, Cristóbal Valdés, expressed cautious optimism, anticipating a more balanced market in the coming months. The company is reinvesting in marketing and promotion, doubling its advertising budget to €10 million ($11.63 million), reflecting a renewed confidence in the sector’s future. Valdés emphasized the importance of responsible pricing and a value-driven approach to sustain growth and ensure the long-term health of the olive oil market.
While some price volatility might remain, the overall trend suggests a return to a more normalized market environment. This positive news is a significant relief for consumers and industry stakeholders alike, following the unprecedented challenges of recent years. The improved market conditions are not only benefiting producers but also ensuring that olive oil, a Mediterranean staple, remains accessible and affordable for consumers worldwide. The future looks brighter for the olive oil industry, thanks to the abundance of this ‘liquid gold’.
