Middle-Class Consumers Celebrate as Olive Oil Prices Finally Decrease

Significant Price Drop in Olive Oil Brings Relief to Households

Olive oil prices have begun to decline from the record highs experienced in recent years, providing much-needed relief for middle-class consumers. Recent data indicates a substantial decrease in the average cost of popular supermarket olive oils, primarily due to a bountiful harvest of Spanish olives. Over the past six months, the price of a 500ml bottle of supermarket own-label olive oil in major retailers such as Tesco, Asda, Sainsbury's, and Morrisons has dropped by an average of 7.8%, now priced at £5.30 as of February 17. Notably, the price of a similar-sized bottle of Napolina oil fell by 12.3% to £6.98, while Filippo Berio's price decreased by 7.5% to £9.21.

Last year, olive oil prices soared to unprecedented levels, climbing 150% from 2021 to 2024 due to a significant drop in production caused by extreme weather conditions and droughts across southern Europe. Spain, which produces approximately 40% of the world's olive oil, serves as a key benchmark for pricing. Although Napolina and Filippo Berio are Italian brands, they utilize a blend of oils sourced from across Europe. Therefore, a reduction in Spanish olive oil prices can substantially influence the production costs of these brands.

Gary Lewis, president of the National Edible Oil Distributors Association, reported a remarkable increase in Spain's olive oil crop. Two years ago, production was around 650,000 tons, but last year's harvest reached about 830,000 tons. This year, estimates range from 1.4 million to 1.6 million tons, thanks to favorable weather conditions. Lewis noted, "I've never seen Andalusia so lush. It has received ample rainfall, and the trees and olives are in excellent condition."

The falling olive oil prices come as a welcome relief for many consumers, especially those who had previously ceased purchasing olive oil altogether due to rising costs, opting instead for alternatives like sunflower oil. While the prices of a 500ml bottle of Napolina or Filippo Berio in the UK remain higher than a year ago, supermarket own-label oils have returned to their prices from twelve months prior.

Walter Zanre, the chief executive of Filippo Berio, anticipates further price reductions in supermarkets in the months ahead. Similarly, Jeremy Gibson from Napolina emphasized that the improved olive oil harvests, driven by milder temperatures and increased rainfall in the spring, have led to better growing conditions for the trees. This improvement has allowed growers to focus on maintaining their groves rather than preparing for another poor harvest.

With increased production in critical regions resulting in lower wholesale prices, further adjustments in retail pricing may be on the horizon, ultimately benefiting consumers across the nation.