Olive oil has long become one of the most important raw materials in our kitchen, thanks to it being wonderfully aromatic and versatile. But its secret powers in baking do not always get enough attention. While butter gives richness and structure to baked goods, substituting it with olive oil can unlock a new world of flavors and textures – and as a bonus, a higher nutritional value. On the website of food and lifestyle guru Martha Stewart, they spoke with a dietitian and an expert in dairy-free and allergen-free baking to understand when and how it is correct to use olive oil instead of butter.
Why bake with olive oil?
Deeper flavor
Olive oil offers a very wide spectrum of flavors – depending on the olive variety, the growing region, and the level of processing – ranging from a dark green to a bright golden hue, and from a grassy and peppery flavor to a fruity and rich one. These nuances can complement baked goods in distinct ways: intense and earthy oils integrate excellently with chocolate-based desserts (such as chocolate olive oil cookies), while lighter and fruity oils especially enhance citrus cakes, like a lemon olive oil cake.
Soft and moist texture
Similar to butter, olive oil also contributes moisture and a rich texture to baked goods, yet it produces a more consistent and softer, and sometimes slightly denser, crumb. Rebecca Schlossberg (MS, RDN, LDN), a clinical and culinary dietitian and the founder of Made Without By Becca, which specializes in dairy-free and allergen-free baking, explained that, "There are certain cakes – like chiffon cakes or chocolate cakes – that actually turn out better with oil."
The reason is that butter is solid at room temperature and contains about 20% water that evaporates during baking, which can result in a drier cake once it cools. In contrast, olive oil is a pure liquid fat that spreads evenly in the batter, coating the flour proteins and restricting gluten development – leading to a delicate and moist crumb that remains pleasant even after cooling. Nevertheless, olive oil is unable to trap air in the batter like whipped butter, meaning the outcome will be a denser and chewier texture – perfectly suited, for example, for rich chocolate brownies.
Health benefits
Schlossberg frequently suggests olive oil as a butter substitute due to its healthy profile: less saturated fat and more monounsaturated fats, including omega 3 and omega 6. Extra virgin and virgin olive oil – which are cold-pressed without heat or chemicals – retain potent antioxidants (polyphenols) that help protect against inflammation and oxidative damage. Virgin olive oil (not "extra" virgin) undergoes slightly lighter processing and is therefore a little less acidic and less rich in nutrients, but it still provides notable health benefits compared to butter or refined oils.
When and how to use?
Olive oil is particularly appropriate for recipes where melted butter is already used – such as muffins, zucchini cake, or banana-chocolate chip cake.
Given that butter contains only about 80% fat and 20% water, Schlossberg recommends using three-quarters of the oil amount relative to the butter. That is, if a recipe calls for a cup of butter, use 3/4 cup of olive oil. If the batter appears too dry, one can add a teaspoon or two of water to compensate for the missing butter liquids – but proceed cautiously so as not to excessively thin the batter.
What Type of olive oil to choose?
"Keep your best olive oil for drizzling and finishing dishes, where its aroma is fully expressed. Avoid refined oils sometimes called "pure olive oil" or "light olive oil" – they undergo heat and chemical processing, which removes the flavor and nutritional values. For baking, it is better to choose medium-quality virgin or extra virgin olive oil with a balanced flavor that you enjoy. Always taste it before use – if you do not like its taste on its own, you probably will not like it in your cake either."
When not to use olive oil in baking
Schlossberg advises against replacing butter with olive oil in recipes that require creaming butter and sugar together – this step relies on the solid state of the butter, which traps air bubbles and creates an airy texture. Olive oil simply cannot replicate this effect. Consequently, for sponge cakes, yeast pastries, or other delicate baked goods – it is best to stick with butter.
