The Middle East is experiencing an unprecedented surge in olive oil demand, fueled by a combination of rising consumer interest and significant production declines in Europe due to severe droughts. Spain, the world’s largest olive oil producer, reported a drop of over 50% in its olive harvest for 2023, while Italy and Greece faced similar reductions. As a result, olive oil prices have hit record highs, with the cost of extra virgin olive oil rising by more than 30% in some markets. This price spike has created a significant supply shortage, driving up exports to the Middle East, where olive oil is a staple in diets and used in a variety of culinary and health practices.
The rising costs are having a broader economic impact, particularly in countries like Saudi Arabia and the UAE, which rely heavily on imported olive oil. While consumer demand remains strong, the price increase is contributing to inflationary pressures, particularly in lower-income segments. Analysts warn that if drought conditions persist in Europe, the global olive oil market could face long-term disruptions, with the Middle East potentially becoming an even larger importer. Additionally, some experts predict that this supply crunch may lead to changes in consumption patterns, with consumers seeking alternatives like sunflower or canola oil, which could have their own environmental and health implications. More