Historically, Palafrugell’s economy was based on agriculture and the cork industry, with the latter becoming a major economic driver in the 19th and 20th centuries. The town was once a leading producer of corks for wine bottles, exporting its products internationally. While the cork industry has diminished, the legacy remains visible in the town’s Cork Museum and some small, family-owned businesses.
Today, tourism is the primary economic force in Palafrugell, thanks to its beautiful beaches, cultural festivals, and historic landmarks. The hospitality sector is thriving, with numerous hotels, restaurants, and services catering to the growing number of visitors. In addition to tourism, local businesses also produce high-quality olive oil, wine, and ceramics, which are popular with both locals and visitors.