Why Argan Oil is The Most Expensive Oil in The World

The price of Argan oil can reach as high as $300 per liter and thus this made it the most expensive oil to be consumed in the world. However, 20 years ago the production of foreign argan is only ever produced in small towns like Maghribi. In fact, on an international scale, you will not ever find argan oil to be sold anywhere in the world.

Ever since then, the existence of cooperative bodies in Maghribi has definitely changed people's perspective on the argan industry which is now worth billions of dollars.

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The main question will be what made argan oil so popular and yet very expensive?

History of Argan Oil

As we all know argan oil is widely used in the cosmetic industry around the world and also commonly used in cooking at Maghribi.

The oil comes from the seeds of the Argan tree which can only be found in a very tight space of the semi-desserts in between the Atlantic ocean of Maghribi and Atlas mountains. 

The Amazigh or Berber from North Africa have used the seeds for generations and the methods to produce this lucrative oil have been around ever since then. The argan fruits that are needed to produce the oil will need to be ripe and cannot be simply picked whenever we like.

They will first need to wait until the fruits fall off from the tree and turn chocolate in color before being harvested. 

Once picked, the argan fruits will be dried under the sun before being peeled and crushed using bare hands to remove the outer layer. The leftover argan seeds will then needs to be milled to extract the rich oil inside. 

The process to crush the argan fruits are definitely challenging since not many can do it and one must be a professional. The complicated techniques used to crush the fruits will retain their complex structures.

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The yield of 1 liter of argan oil requires as much as 40kg of argan fruits (or an estimated 20kg of argan seeds). The next process will be grinding which must also be done by hand.

They will grind what's left of the argan which is traditionally taught by their ancestors and it is also done very slowly and carefully which will take a very long time. In order for them to produce 1 liter of argan oil, it will take 2 hours long.

The best quality of argan oil is commonly known as red gold due to its high price tag on it. This is because an Amazigh woman will need roughly 24 hours to produce 1 liter of argan oil. 

What's left of the argan fruits are sold as food to animals, especially to the sheep which has a very strong relation to the argan tree. In some parts of the region, it has become a tradition to let the sheep climb on the trees to eat the argan fruits as they wish.

The argan seeds will then be collected from the sheep's droppings which will definitely save time since the seeds do not need to be extracted manually using hand. But to this day, this unusual activity has become one of the hotspots for tourists around the world.

The methods applied by the Amazigh woman to produce the argan oil have become the main purpose for cooking which has been inherited for generations. The oil produced is sometimes sold in bottles at a side stall with a measly price of only $3. 

Professor Zoubida Charrouf from the University of Mohammed V believed that the woman producing the oil the traditional way will usually have soft hands without any wrinkles, however, this has yet to be proven scientifically. 

Zoubida Charrouf first started her research on the argan tree back in the 1980s for her Ph.D. and at that time, the trees were depleting really bad.

After she has done her research she thinks that this will be a good opportunity to support the benefits of argan oil which has a moisturizing effect on the skin and hair. Zoubida plans to change this problem into a solution economically. 

Zoubida started her initiative with 16 women and as soon as the women there saw the cooperation that was built through this plan. they also decided to join in and get the benefits of marketing the argan oil.

It has been proven that the increase in popularity of argan oil not only gives good revenues to the whole region but also improves the whole ecosystem. In fact, the value of the tree has increased tremendously which will ensure the stability of the species and ultimately benefit the whole community that lives there including the wildlife. 

The argan tree which is commonly known as the tree of life in that region has provided food, shelter as well as protection to the land from becoming an empty desert. Not just that but the roots of the tree which goes in very deep into the soil have prevented erosions and have stimulated the growth of grass which provided food for the animals. 

It has been estimated that 90% of the region's economy came from the argan industry. As many as 3 million people have benefited from the argan tree as it opens up job opportunities for the locals.

But more importantly, the effect that this has brought towards the environment since the argan tree is considered the last green layer of that dessert. Only in one generation, the international market for argan oil has increased from 200 liters to 4,000 metric tonnes in 2019. This was an increase of more than 20,000 fold. 

In the year 2025, they hoped that the sale of argan oil can reach a staggering 10,000 metric tonnes. To make this a reality, the area for argan oil production has expanded for more than 160km towards the south of Essaouira and is predicted to expand to the north.

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Similar to any product with high value, the appearance of copycats will always exist and argan oil is no exception. Both the argan oil that has been used for cosmetic purposes and cooking is constantly labeled as original despite the percentage of argan oil remains unknown and whether it was mixed with other chemicals. 

Argan oil which was extracted mechanically and far more cheap starts appearing in the market at as low as $22 per liter and this is seen as a threat to local businesses. 

Not to worry as big cooperation like L'Oréal is committed to providing fair trade to ensure the stability of the argan oil industry as well as preserving the biodiversity of the plants. 

With this collaboration, the traditional skills possessed by the Amazigh woman have contributed to the expansion and development of the argan industry. With all that being said, the Amazigh women typically get paid $420 per month which is below the average minimum that has been recommended in Maghribi.

Source: 

• Business Insider

• News24

• Travel Awaits

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