Olive Oil Is About to Get Very Expensive—Here's Why

Whether you make your own salad dressing, dip bread, or enjoy pasta—olive oil is liquid gold. Many of us probably can't get through a week or even a day without consuming it. But unfortunately, just like most pantry staples, whether you prefer extra virgin, organic, or conventional olive oil—it’s about to become more expensive. Here's why olive oil prices are expected to rise in 2023.

Why Olive Oil Prices Are Increasing

There are several reasons why the price of olive oil is about to go up. If you haven’t been following the news, during the summer of 2022, droughts and heatwaves hit several olive oil-producing regions across Europe. This led to a suboptimal harvest season. A lower supply ultimately means a higher cost. 

Another reason why the price of olive oil is rising is that, in addition to smaller harvests in Spain (which produces approximately half of the world’s olive oil) and Italy, there has been a decrease in the supply of sunflower oil, due to the war in Ukraine. It turns out that Ukraine produces half the world’s sunflower oil supply. So the price of all vegetable oils will continue to rise. 

Lastly, it doesn’t look like this summer’s harvest will be much better.

“The changing climate is absolutely going to result in the volatility of olive production," Casey Corn, olive researcher and culinary consultant, told Food & Wine. With uncertain temperature patterns and weather events increasing in intensity, our crops aren't facing the same predictable environments that we've built infrastructure and businesses around.”

Considering that the average price of Italian virgin olive oil has already increased by 27 percent in the past two years, the situation doesn’t look like it’s going to improve anytime soon. 

Could This Impact the Price of Your Starbucks Order?

If you’re wondering how the price of olive oil and your next trip to Starbucks could be related—it depends on what your order is. If you’re into the new Starbucks Oleato latte, you're probably going to end up paying extra. 

If you have heard of this new drink yet, it's because the Oleato was recently launched in Italy. Unlike the famed Pumpkin Spice Latte, which doesn't contain any pumpkin, the Oleato actually includes a spoonful of real olive oil.

While this adds 120 calories to each cup, it also adds extra nutrients, including a healthy dose of antioxidants, as well as vitamin E and vitamin K. 

Starbucks also plans to launch an Oleato Ice-Shaken Espresso, which is made with oat milk, hazelnut flavor, and olive oil. There’s also an Oleato Golden Foam cold brew made with sweet milk foam on the way. This treat contains two servings of the delicious liquid gold. 

Don’t live in Italy? Don’t worry, you’ll be able to try an Oleato soon enough. Starbucks plans to roll out versions of these drinks in Southern California this spring. An announcement about a nationwide launch is also coming soon. 

But don’t be surprised if your new favorite Starbucks fix ends up being a bit more of a splurge than your current Starbucks order.