Castalla’s economy is traditionally rooted in agriculture, with olive groves and vineyards playing a significant role. However, in recent decades, the town has diversified, with the plastic and toy manufacturing industries becoming major economic drivers. Castalla is part of the “Toy Valley” of Spain, along with nearby towns like Ibi, where toy production is a key industry, making the region famous for quality, locally-made toys.
Tourism has also become increasingly important to the local economy. The town’s historical sites, festivals, and proximity to both mountains and beaches attract a growing number of visitors each year. Local businesses, including family-run restaurants, shops, and hotels, benefit from this influx of tourists, especially during the summer and festival seasons.
In addition to tourism and manufacturing, Castalla is known for its high-quality artisanal products, such as olive oil and wine. These local products are often sought after by visitors and contribute to the region’s growing reputation for culinary excellence.