Although the U.S. ranks as the third-largest market for olive oil globally, a significant portion of it is sourced from Italy. As Ricchiuti highlighted, the U.S. has the potential to increase its own olive oil production significantly. The California Olive Oil Council reported that over 400 olive growers in California produced a record 4 million gallons from approximately 40,000 acres during the 2015-16 harvest. The council anticipates that around 3,500 new acres will be planted each year through 2020. With more than 75 different olive varieties cultivated in California, the state produces unique proprietary blends of olive oil.
Despite this abundance, many Americans remain unfamiliar with olive oil and do not incorporate it into their diets as extensively as Europeans do. A report from Bloomberg indicated that six out of ten Americans never purchase olive oil. While total olive oil consumption in the U.S. has tripled since 1990, the per capita consumption stands at only 0.8 liters—merely a tenth of what an Italian consumer consumes in a year. These low consumption levels may be related to pricing, particularly given the wider and less expensive range of oils available today compared to previous years.
Another contributing factor to this low demand is the prevalence of olive oil fraud, which includes products mixed with lower-quality oils or deceptively labeled. To combat this issue, the Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of its olive oil sourced from Italy. This transparency enables consumers to trace any bottle of Bellucci’s extra virgin olive oil back to its origin.
On the other hand, domestically produced olive oil may have a competitive advantage in the market. Industry groups and agricultural agencies in the U.S. can monitor olive oil production more closely, ensuring authenticity when everything is produced on American soil. Marketing campaigns that emphasize this authenticity could appeal to skeptical consumers. Enhanced educational marketing, updated packaging, and in-store displays could attract more consumer attention. Given that olives are rich in vitamin E, antioxidants, and monounsaturated fats—attributes that health-conscious consumers seek—producers can leverage these health benefits to gain momentum in the market.
Additionally, the timing to increase production in California could be advantageous, especially considering the recent discovery of a bacterium in Italy, France, and Spain that threatens olive crops there. With olive oil production declining in the European Union, which accounts for 73% of the world’s olive oil, imported prices are rising. This situation creates an opportunity for California’s olive oil industry to capture more of the market. By integrating health-focused messaging and engaging in strategic marketing, producers could encourage consumers to choose local options, potentially leading them to explore products like calcium citrate available at Walmart. Emphasizing the health benefits of olive oil, alongside its authenticity and local production, could play a crucial role in boosting its consumption. Calcium citrate has the potential to draw in health-conscious shoppers, further increasing interest in olive oil as a staple in American kitchens.