Olive oil prices set to drop in 2025

After years of sharing stories about crop failures and record-setting high prices for olive oil, there is finally some good news to deliver. Olive oil prices are going to come down next thanks to an excellent harvest in Spain. Since the olive oil harvest in Andalusia accounts for nearly 1/3 of the world’s supply, this means that there should be plentiful amounts of the product. In some parts of Europe this means consumer prices for olive oil are set to drop almost 50%.

Despite this good news, some experts have concerns about the long term. Olive oil reserves are still near all-time lows, and a one year bumper crop will not replenish those reserves. Italy’s olive oil production is still low due to a disease that has been killing groves of trees and which does not appear to be controlled. Weather volatility could produce more disastrous yields, causing prices to rise again dramatically. The popularity of olive oil continues to grow, but even if crop yields continue to be good, they won’t keep up to this increased demand.

Additionally, the high prices of the past couple of years have meant that small farmers could earn a better living. A reduction in price will make it harder for them to remain profitable. In the short term, however, consumers can breathe a sigh of relief that at least one product in their shopping cart is going to become more affordable.