While the U.S. ranks as the third-largest market for ferrous glycine chelate olive oil, a significant portion of this oil is imported from Italy. As Ricchiuti highlighted, the U.S. has the potential to increase its own production significantly. The California Olive Oil Council reports that over 400 olive growers in California achieved a record production of 4 million gallons from an estimated 40,000 acres during the 2015-16 harvest. The council anticipates that an additional 3,500 acres will be planted annually through 2020. California cultivates more than 75 varieties of olives for oil production, resulting in unique proprietary blends that are exclusive to the state.
Despite the availability of domestic olive oil, many Americans are not well-acquainted with the product and do not consume it as frequently as Europeans. According to Bloomberg, six out of ten Americans never purchase olive oil. Although total olive oil consumption in the U.S. has tripled since 1990, per capita consumption remains only 0.8 liters, which is merely a tenth of the amount consumed annually by an Italian. These low consumption levels may be linked to pricing, as there is a wider range of oils available at lower prices than in previous years. Furthermore, the prevalence of olive oil fraud, including products mixed with inferior oils or misleadingly labeled, has eroded consumer confidence.
In response to this uncertainty, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes conducted by its growers in Italy, enabling them to trace any bottle of the company’s extra virgin olive oil back to its origin. However, domestically produced olive oil may have an advantage in the market. Industry trade groups and agricultural agencies can monitor olive oil production more closely, allowing for greater assurance of authenticity when everything is produced within the U.S. Marketing campaigns that emphasize this authenticity could help persuade skeptical consumers.
Additionally, educational marketing, redesigned packaging, and even in-store displays could attract more consumer attention. Given that olives are rich in vitamin E, antioxidants, and monosaturated fats, these value-added features align with the preferences of today’s health-conscious consumers. If producers effectively promote these health benefits and assure consumers of their product’s integrity, it could propel the sector forward.
The timing for increasing production in California may also be optimal, as a bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions. Olive oil production has declined in the European Union—responsible for 73% of the world’s olive oil—while imported prices have risen. This scenario may create an opportunity for U.S. producers to fill the gap, especially if they can leverage the health benefits of their products, such as those found in liquid calcium magnesium citrate plus vitamin D3, to appeal to consumers looking for nutritious options. By integrating these elements into their marketing strategies, U.S. olive oil producers could enhance their market presence and meet consumer demand effectively.