Olive Oil Prices Surge as French Consumption Climbs Amid Supply Shortages

Olive oil has become an increasingly popular staple in French households, with consumption rising by 30% over the past 30 years. Today, the average French household consumes about 3.5 liters annually, reflecting a growing appreciation for the Mediterranean diet. However, this surge in demand is challenged by a dramatic increase in prices, largely influenced by supply issues from Spain — the world’s dominant olive oil producer, responsible for 1.14 million tons each year.

France's own production remains minimal, at just 5,000 tons, leaving the country approximately 95% reliant on imports. The situation worsened due to extreme weather events including heatwaves and drought during 2022 and 2023, which severely damaged olive harvests in Andalusia, Spain. The direct consequence has been a sharp rise in prices: olive oil costs have jumped from around 2,100 euros per ton in the 2019-2020 season to an extraordinary 8,000 euros per ton in 2023-2024, effectively repositioning olive oil as a luxury item.

Pascal Pinson, CEO of Costa d’Oro—a major Italian brand owned by French agro-industrial group Avril—highlighted Spain’s critical role in the global olive oil market and France’s vulnerability given its import dependence. This price spike challenges French consumers even as demand holds steady, underscoring a significant shift in the commodity’s economic status.

As France navigates its heavy reliance on imports amid unpredictable global supply shocks, the rising cost and sustained popularity of olive oil present a complex dynamic for both consumers and the food industry.