Olive Oil in Spain - From Kitchen Staple to Luxury Good
How Drought, Export, and Consumer Behavior Affect the Price of "Liquid Gold"
Marcus Stuart (MS)May 8, 2025
Olive oil, the cornerstone of Spanish cuisine, is increasingly becoming a luxury item. The prices for a liter bottle have reached the ten-euro mark, and consumers are concerned. But what's behind this drastic price increase?
Consumers in Spain are feeling the price hike acutely. Many have reduced their consumption of olive oil and are switching to other oils like sunflower oil. The Edible Oil Association ANIERAC reports a significant decline in the consumption of refined olive oil, mainly used for cooking and frying, in the first half of the year. For the first time, sunflower oil is in higher demand than olive oil, marking a small revolution in Spanish cuisine.
Teresa Pérez, an industry representative, offers little hope for a price reduction anytime soon. She attributes the price increase to ongoing drought and the resulting lower harvest. Only about a quarter of olive groves in Spain are irrigated; the rest rely on natural rainfall. The reserves are depleted, and the next harvest is unlikely to improve the situation. Additionally, Spain exports nearly 70% of its olives, further driving up the price.
The Spanish government has tried to mitigate the price increase through tax cuts. For selected products, including olive oil, only a five percent value-added tax is currently levied. However, Enrique García from the Spanish Consumer Protection Organization OCU suspects that speculation could also play a role. He urges the government to investigate the situation more closely.
In the meantime, consumers are trying to help themselves. Some are using oil sprays to reduce consumption, while others are banding together to buy larger quantities at more favorable prices. Either way, Spaniards are forced to adjust their cooking habits.
