Why real saffron is so expensive

Graham Watson

28th June 2020

Is this perhaps the best example of a luxury good? Why does saffron cost £10,000 per kilo?

This Business Insider clip highlights the difficulties in producing saffron, with over 40 hours of labour required to produce 1 kilogram of the spice, made up of 450,000 strands of saffron, or 150,000 flowers. This clip details exactly why the spice is so sought after, and so expensive. It is fascinating from a microeconomics perspective!

Why real saffron is so expensive

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.