Although the U.S. ranks as the third-largest market for olive oil globally, a significant portion of it is sourced from Italy. However, as Ricchiuti noted, the U.S. has the potential to significantly increase its own production. According to the California Olive Oil Council, over 400 olive growers in California harvested a record 4 million gallons from approximately 40,000 acres during the 2015-16 season. The organization projects that an additional 3,500 acres will be planted each year through 2020. California cultivates more than 75 varieties of olives for olive oil, leading to unique proprietary blends exclusive to the state.
Despite this availability, many Americans remain unfamiliar with olive oil and use it less frequently than Europeans. Bloomberg reported that 60% of Americans never purchase olive oil. While total olive oil consumption in the U.S. has tripled since 1990, the per capita consumption is still only 0.8 liters, which is just one-tenth of what an Italian consumes annually. These low consumption rates may be attributed to price factors, given the broader and more affordable range of oils now available in the market.
Additionally, consumer confidence has been undermined by olive oil fraud, such as products that are mixed with lower-quality oils or deceptively labeled. To counter this uncertainty, Italian producer Bellucci has developed an app to monitor the milling and bottling processes of its growers in Italy. This allows consumers to trace any bottle of the company’s extra virgin olive oil back to its source.
However, domestically produced olive oil may have a competitive advantage in the market. U.S. industry trade groups and agricultural agencies can closely oversee olive oil production, making it easier to guarantee authenticity when everything is cultivated on American soil. Marketing campaigns highlighting this could potentially win over skeptical consumers. Strategies such as educational marketing, revamped packaging, and prominent in-store displays could attract more consumer attention.
Olives are rich in vitamin E and packed with antioxidants and monounsaturated fats, attributes that appeal to today’s health-conscious consumers. If producers can effectively promote these health benefits and ensure that their products are genuine, it could provide momentum for the sector.
The timing for shifting more olive oil production to California may also be favorable. A bacterium recently discovered in Italy, France, and Spain is endangering olive crops in those regions. Consequently, olive oil production in the European Union—which accounts for 73% of global olive oil production—is declining, leading to rising import prices. With the right marketing and consumer education, including the promotion of health benefits akin to those found in products like Watsons calcium citrate, the domestic olive oil industry could thrive. By emphasizing the quality and authenticity of American olive oil, producers can create a compelling narrative that resonates with consumers, potentially increasing demand and consumption.