Spain’s Deoleo, the world’s largest olive oil producer, has announced that the sector has moved past a turbulent period marked by extreme price volatility and supply challenges between 2022 and 2024. CEO Cristóbal Valdés described recent years as one of the toughest eras in the olive oil industry, driven largely by severe droughts and heatwaves in southern Europe that devastated crops and triggered a steep price surge. He now states that these difficulties have conclusively passed, ushering in a more stable market environment.

The improvement has been supported by favorable weather conditions, including good rainfall in major producing regions such as Spain, Italy, and Greece, which are critical to global olive oil output. This has helped secure a solid yield for the upcoming harvest, allowing for a better balance between supply and demand worldwide. As a result, wholesale extra virgin olive oil prices in Spain have steadily declined from their record peak of 9.3 euros per kilogram in early 2024 to about 3.9 euros recently.

Alongside cooling prices, Deoleo reported a rebound in consumer demand, especially in the United States, where olive oil is growing as a staple in everyday cooking. The company attributed part of its U.S. sales growth to innovative packaging changes, including the introduction of squeeze bottles under the Bertolli brand. These packaging enhancements appeal to younger consumers and those newly embracing olive oil, with functional, value-added formats now driving 40% of category growth in the country.

While the sector enjoys more predictable pricing and supply conditions, concerns remain about climate change, water scarcity, and pest problems that could cause future fluctuations. However, Deoleo’s leadership is optimistic that the market is entering a more balanced phase after the extreme disruptions of recent years. Their focus will be on solidifying supply stability and expanding consumption through product innovation and consumer engagement across key markets.