Europe, especially Spain, has had a bountiful olive harvest, greatly boosting confidence in the olive oil market and leading to a significant decrease in prices for extra virgin and virgin olive oils worldwide.
The CEO of Deoleo, the world’s largest olive oil producer based in Spain, Cristóbal Valdés, told CNBC that the bumper olive crop in Europe has significantly boosted market confidence, signaling a strong recovery in the olive oil industry.
Previously, due to two consecutive quarters of extreme weather leading to poor olive yields in Europe, along with factors such as high interest rates and inflation, the entire olive oil value chain experienced unprecedented turbulence last year. Olive oil prices soared, leaving consumers and industry insiders astonished.
Valdés stated that last year was one of the most challenging periods in the history of the olive oil industry, with severe raw material shortages, volatile price fluctuations, and decreased consumption. However, this year has seen a major shift in the market, with the environment gradually normalizing and confidence being restored.
Valdés highlighted that the olive harvest, especially in Spain, has significantly rebounded, leading to a more stable supply of raw materials impacting factory prices directly. While some market fluctuations may still occur in the future, the trend towards price normalization is expected to continue.
The majority of olive oil supply in the world comes from the Mediterranean region, with countries like Spain, Italy, and Greece being major producers of olive oil globally. Spain, in particular, serves as the largest olive oil producer in the European Union and sets the benchmark for olive oil prices worldwide.
According to the Spanish Ministry of Agriculture, Fisheries, and Food, Spain produced 1.41 million tons of olive oil in the 2024/2025 season, representing nearly a 65% increase from the previous year’s production of 855,600 tons.
Valdés noted that the abundant olive harvest in Spain led to a 50% drop in raw material prices, greatly stimulating demand, and allowing the company to lower retail prices. It is anticipated that the market will become more balanced in the future, with normal pricing and value focus becoming key to sustaining growth and ensuring the long-term health of the product category.
Furthermore, Valdés revealed that with the improving market environment, the company will be doubling its advertising and promotional budget to €10 million (approximately $11.63 million).
Starting on August 1st, the United States began imposing a 15% tariff on most EU goods. In response, Valdés stated that the company plans to enhance communication, marketing, and consumer interaction efforts to ensure that olive oil remains an indispensable part of people’s daily lives.