World’s largest olive oil company says market has 'definitively' entered new phase

The world's largest olive oil company, Deoleo, reports that the industry has exited a period of extreme volatility. CEO Cristóbal Valdés confirmed that the turbulent market cycle observed between 2022 and 2024 is behind us. Improved rainfall across major production hubs like Spain has increased global supply, which creates a more predictable pricing environment for consumers.

This stabilization is a stark contrast to recent years. Between 2022 and 2024, severe droughts and high temperatures across southern Europe decimated harvests. These conditions triggered record-breaking price spikes that affected households worldwide. At the peak of this shortage in January 2024, wholesale extra virgin olive oil prices reached 9.3 euros per kilogram. Current data shows a steady decline as supply chains recover.

Lower prices are now encouraging more American shoppers to incorporate olive oil into their regular routines. Deoleo noted that sales volumes are climbing across all income brackets. The company remains focused on consumer innovation to sustain this momentum. New packaging designs, specifically functional squeeze bottles, now account for 40% of the category's growth in the United States. This shift toward user-friendly formats reflects changing culinary habits among younger demographics.

While the worst of the crisis is over, industry analysts remain attentive to environmental pressures. Climate change, water scarcity, and potential disease outbreaks continue to pose long-term risks to agricultural yields. However, the current harvest outlook remains positive. With production levels normalizing, the industry moves away from the supply shocks that defined the previous three years.