While the United States ranks as the third-largest market for olive oil globally, a significant portion of it is imported from Italy. However, as Ricchiuti noted, the U.S. has the potential to boost its own production considerably. During the 2015-16 harvest, California’s more than 400 olive growers produced a record 4 million gallons from approximately 40,000 acres, according to the California Olive Oil Council. The organization anticipates that around 3,500 new acres will be planted each year until 2020. California cultivates over 75 varieties of olives for olive oil, resulting in unique proprietary blends exclusive to the state.
Despite the availability of these products, many Americans remain unfamiliar with olive oil and tend to use it less than Europeans. Bloomberg reported that 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 is only 0.8 liters—just a tenth of the annual usage by Italian consumers. These low consumption rates might be linked to pricing, particularly as there is a broader and more affordable range of oils available today compared to previous years. Additionally, consumer confidence in olive oil has been compromised by issues such as olive oil fraud, where products are mixed with lower-quality oils, adulterated, or misleadingly labeled.
To address this uncertainty, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of their olive oil sourced from Italy, ensuring traceability to the product’s origin. However, domestic olive oil may have a competitive advantage in the market. Industry trade groups and agricultural agencies can closely monitor olive oil production in the U.S., making it easier to assure authenticity when all products are made on American soil. Marketing campaigns highlighting this authenticity could help win over skeptical consumers.
Educational marketing, updated packaging, and engaging in-store displays could capture more consumer interest. Given that olives are rich in vitamin E, antioxidants, and monosaturated fats—attributes that health-conscious consumers seek—producers could leverage these health benefits to gain traction in the market. Furthermore, if they can guarantee that their products are genuine, it could give the sector the momentum it needs.
The timing to enhance production in California may also be favorable, especially considering a bacterium recently discovered in Italy, France, and Spain that poses a threat to olive crops there. Olive oil production is declining in the European Union, which accounts for 73% of the world’s olive oil supply, while imported prices are rising. As a result, with growing concerns about the authenticity and quality of olive oil, the U.S. market could see increased demand for locally produced olive oil, especially as consumers become more aware of its health benefits, akin to the advantages offered by products containing calcium citrate. By emphasizing these attributes and ensuring the integrity of their offerings, domestic producers could tap into a lucrative market opportunity.