Sunflower oil has overtaken olive oil as the most popular cooking oil in Spain, a development that has surprised many in the country, which is the world’s largest producer of olive oil.
The shift is largely attributed to the rising cost of olive oil, which has led consumers to opt for cheaper alternatives.
Olive oil sales drop amid rising prices
Spaniards purchased 107 million litres of olive oil in the first half of 2024, a significant decrease compared to the 179 million litres of sunflower oil sold during the same period, according to Spain’s largest olive oil bottling association, Anierac. This marks a notable shift from previous years when olive oil consistently held the top spot in Spanish kitchens.
In 2023, olive oil accounted for 62% of all cooking oil sales by volume, while sunflower oil represented almost 34%, as per the Ministry of Agriculture. However, Anierac spokesperson Primitivo Fernandez noted, “It is clear that olive oil consumption is falling in Spain.” He highlighted that many households that previously purchased only olive oil are now buying both olive and sunflower oils.
Factors behind the shift: Price and supply issues
As reported by UK newspaper, The Independent, the decline in olive oil sales, which dropped 18% from the first half of 2023, can be attributed to its rising cost. The price of olive oil has surged by 50% over the past year, with some varieties reaching over €6 per litre in 2023. In contrast, sunflower oil has seen a 25% increase in sales volume over the same period, largely due to its affordability, with prices averaging around €1.86 per litre last year.
The sharp increase in olive oil prices is linked to poor harvests caused by heatwaves and prolonged droughts, which have severely impacted olive production in Spain, a country that typically supplies around 40% of the world’s olive oil. The resulting supply shortage has driven prices to record highs, making olive oil too expensive for many households.
Impact on consumption and industry response
According to a Ministry of Agriculture report on food consumption trends in 2023, the soaring prices have driven poorer households to switch to sunflower oil. Olive oil is now predominantly consumed by middle and upper-middle-class families. By the end of 2023, the cost of one-litre bottles of extra-virgin olive oil reached as high as €14.5 in some supermarkets, prompting retailers to fit security tags on these products.
In response to the declining consumption, the Spanish government reduced the VAT on olive oil in an attempt to make it more affordable. Additionally, Spain’s largest supermarket chain, Mercadona, has reduced the price of olive oil by 25% this year, offering one-litre bottles for less than €7 in an effort to regain customer loyalty.
The ongoing importance of the olive tree industry
Despite the current challenges, the olive tree industry remains a crucial part of Spain’s economy. The country’s extensive olive groves, harvested between October and December, produce not only olive oil but also olives and various other products. The industry contributes significantly to the economy, providing a range of goods, including beauty products like soaps and shampoos.
The production of extra virgin olive oil, derived from the cold pressing of olives, is particularly important. This oil is used in a variety of culinary applications and is renowned for its quality.
In addition to its economic contributions, the olive tree industry is recognised for its environmental benefits. Olive trees are a renewable resource, cultivated sustainably, and they play a role in reducing atmospheric carbon dioxide, helping to combat climate change.
The shift from olive oil to sunflower oil in Spain marks a significant change in consumer habits, driven by economic factors. While the olive tree industry continues to be a major economic force, the current trend highlights the impact of rising costs on traditional consumption patterns in one of the world’s leading olive oil producers.