THE’extra virgin olive oil it is reaching prices never seen before. With Christmas just around the corner, many families will find themselves having to deal with a significant increase in the cost. Since January 2021, the price of olive oil has risen dramatically, exceeding the 8 euros per litre (the increase is around 80% in three years). But why does the price continue to rise? There are various causes, including production difficulties, climatic events unfavorable conditions and growing demand. While promotions can still offer some savings, the benefit is now minimized.
Oil still increasing: from 2021 the price will go beyond 8 euros
The price of olive oil has seen a significant surge since 2021, with increases exceeding 80% in some cases. Compared to 2019, national olive oil at origin has passed from less than 4 euros per litre to more than 9 euros (in August 2024).
The cause of this increase is linked to various factors, including shortage of crops due to difficult production seasons and increased global demand. With the increase in prices at source, the cost of extra virgin olive oil has inevitably passed on to the final consumer, who now finds himself having to pay over 8 euros per litre in stores, with an increase of 32% compared to the previous year.
Oil from discount stores (not of Italian origin) has also increased, with the average price of a liter exceeding 9 euros, aligning itself with the prices of supermarkets and hypermarkets. Despite the competition from discounters, consumers are no longer able to find the advantageous opportunities of the past, and the choice of oil has become increasingly difficult.
Because the price keeps rising
The reasons behind the increase in oil prices are multiple. The first cause lies in the difficulties linked to production, with years of poor harvests in Italy and other producing countries, such as Spain and Greece. Droughts and other climate events have had a devastating impact on olive productionreducing the amount of oil available on the market. Added to this situation is the growing demand for quality oil, which has pushed prices upwards. Furthermore, the growing difficulty of finding oil at affordable prices has led producers to focus on higher quality oils, further increasing the average price.
The global market is experiencing a supply shortage, which also affects the oil produced in the main olive oil producing countries, and Italy, unfortunately, is unable to completely satisfy its demand. Importation from abroad has therefore taken on an increasingly central role, but these oils also tend to have higher costs. There is also a growing need to pay attention to fake Made in Italy products.
How to save on oil, the discount is no longer convenient
Until recently, discount stores were one of the main ways to save on groceries.extra virgin olive oilbut now this option has also lost its convenience. Until 2020, you could buy oil at discount stores save up to 10%but today the savings vary from 4% to 5%. In 2023, discounters have lost the battle on convenience, and today prices in supermarkets and hypermarkets are about the same or slightly lower.
Even promotions no longer offer the advantages they once did: if that was possible in 2021 save up to 30% with a promotion, today the savings have dropped to 15%. Although promotions continue to be a way to reduce costs, the effect of these offers is significantly reduced compared to the past.
