Olive oil is a cornerstone of Israeli culinary culture, deeply embedded in the traditional Mediterranean diet. It is used in a wide variety of dishes, from seasoning salads and cold dishes to cooking, baking, and preparing traditional foods like hummus, shakshuka, and za'atar bread. In recent years, as awareness of health benefits has grown and the nutritional advantages of olive oil have been recognized, its use in Israeli households has increased.
Despite this, olive oil consumption in Israel remains low compared to other Mediterranean countries. The average per capita consumption in Israel is about 3 kg per year, compared to 15 kg in Greece and 12 kg in Italy. This disparity stems primarily from the preference for cheaper vegetable oils, such as soybean and canola oil, alongside the high costs of quality olive oil.
However, the development of the premium market and the growth in sales of organic and high-quality olive oils indicate a gradual shift, positioning olive oil as one of the preferred products for Israeli consumers.
No More Turkey
Starting in 2022, signs of a severe global olive oil production crisis began to appear. Extreme weather conditions, primarily heat waves and severe droughts, hit southern Europe, especially Spain, the world’s leading producer. A dramatic drop in olive yields was already evident in 2022, with Spain's production plummeting from 1.4 million tons in 2021 to just 660,000 tons.
The crisis also affected other countries, including Italy, Greece, and Turkey, which together account for about 20-25% of the global market. The sharp decline in supply triggered an immediate chain reaction, including price surges (30-50% within a year) and impacts on imports. In Israel, where imports account for about 65% of local consumption, prices rose in line with global trends.
In addition to the climate crisis, the Israeli market faced another challenge: Political tensions with Turkey. In recent years, Turkey has become one of Israel’s primary olive oil suppliers, with a market share of about 83% of imports. The escalation of trade tensions between the two nations created uncertainty regarding supply and increased Israel’s reliance on alternative imports.
To address the shortage, Israeli importers had to increase imports from countries like Spain, Greece, and Tunisia. However, oils imported from these countries are more expensive, leading to further price hikes for Israeli consumers.
Reliance on Climate
As noted, the impact on the Israeli market was clearly felt on supermarket shelves. A 750 ml bottle, which cost NIS 25-29 before the crisis, now sells for NIS 45-50. High-quality Israeli-made olive oil is even pricier—NIS 70-80 per liter. It should be noted that during 2023, prices fell slightly following a partial recovery in production and imports.
Encouraging forecasts emerged primarily with improved conditions in Europe. Spain's Deoleo, one of the world’s largest producers, reported moderate recovery in olive oil production. Greece and Turkey also managed to increase yields. Nonetheless, the market remains dependent on weather conditions. As climate change intensifies, farmers will face greater volatility.
In Israel, olive oil is found in nearly every household, but per capita consumption remains low. Awareness of its health benefits—particularly for heart health, cholesterol, and digestion—is driving gradual increases in usage. Consumer trends include a preference for cheaper oils, rising demand for organic olive oil, and growing sales of local brands.
The Israeli market is dominated by a few major producers combining ancient traditions with innovative technologies. Leading the pack are Yad Mordechai, Meshek Jahshan, Etz Hazayit, Zeta, and Eretz Gshur. Alongside these established brands, the past two years have seen an increase in new olive oil brands. This trend has led to growing scrutiny of product quality, with some brands even disqualified by the Olive Oil Council for failing to meet standards for pure olive oil.
In parallel, private-label brands offered by retail chains have seen significant growth and have become a major competitive force. The entry of international chains like Carrefour, which introduced olive oil at an exceptionally low price of NIS 29.90, along with similar promotions by chains such as Osher Ad, Rami Levy, and Yochananof, has intensified competition and led to partial market recovery.
This trend indicates that olive oil prices in Israel are stabilizing and declining, allowing consumers to more freely incorporate olive oil into their diets. However, it’s important to note that many retail chains still do not offer affordable options, and even in chains with lower prices, the cheaper products are not always prominently displayed, leaving more expensive options, priced above NIS 45 for a 750 ml bottle, more visible.
Yad Mordechai, owned by Strauss Group, continues to hold a significant market share of about 17%. In 2023, it was reported that Strauss is considering selling the brand to focus on other areas. Such a move could alter market dynamics, as Yad Mordechai is not only a leading brand but also a symbol of quality and a hallmark of Israeli olive oil.
Other leading brands in the market include Etz HaZayit (11%) and Zeta (9%), both emphasizing quality and reliability. Boutique brands like Eretz Gshur from the Golan Heights and Meshek Jahshan from the Galilee offer unique olive oil varieties that are highly regarded both domestically and internationally.
Private-label brands from retail chains, which offer consumers more affordable prices, lead sales with a 24% market share, followed by Yad Mordechai (17%), Etz Haזayit (11%), and Zeta (9%).