Diagnosing The Rapidly Increasing Price Of Olive Oil

These days, rising supermarket costs are par for the course when we go grocery shopping. Nevertheless, a few items can still deliver a pang of sticker shock when consumers pull them off the shelves.

One notorious example is olive oil, which has seen its average cost more than double around the world in just the past year.

Why it’s so expensive

As with most items that have seen their market values soar recently, there are a few factors at play regarding the skyrocketing cost of olive oil, including:

• Droughts in Spain that have drastically reduced that nation’s crop yields
• A 40% decline in olive oil production last year across the European Union
• Higher costs passed along from importers to wholesalers to retail stores

And since almost all of the olive oil sold in the U.S. is imported, there’s not much American consumers can do to find relief from the escalating costs.

But it’s still popular

Olive oil has become a staple in various types of cuisine, which means it can’t easily be replaced with other products in many recipes. Whether you’re a home cook or the chef at an Italian restaurant, there’s always a need for a high-quality bottle of this stuff.

That’s why, despite predictions that the higher prices would cause decreased demand, there’s instead been evidence that people are willing to absorb the added cost and make cuts to their budgets elsewhere.

It remains to be seen how long that trend will hold up, though. Industry insiders say higher prices are still coming — and could be a harsh reality for the market until we’re able to find a wider and more reliable source.

With costs hovering around $9,000 per metric ton, expect a 750-milliliter bottle of EVOO to set you back $11 or more.

Chris Agee October 23rd, 2023

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