While the U.S. ranks as the world’s third-largest market for olive oil, a significant portion of it is imported from Italy. However, as Ricchiuti noted, the U.S. has the potential to increase its own production considerably. During the 2015-16 harvest, over 400 olive growers in California yielded a record 4 million gallons from approximately 40,000 acres, according to the California Olive Oil Council. The organization anticipates that an additional 3,500 acres will be planted each year until 2020. California cultivates more than 75 varieties of olives to produce olive oil, resulting in unique proprietary blends exclusive to the state.
Despite this abundance, many Americans remain unfamiliar with olive oil and use it less frequently than Europeans. According to Bloomberg, six out of ten Americans do not purchase olive oil at all. Since 1990, total olive oil consumption in the U.S. has tripled, but per capita consumption is still only 0.8 liters—just one-tenth of what an Italian consumer consumes annually. These low consumption rates may be linked to pricing, especially given the broader and more affordable range of oils available today. Additionally, the issue of olive oil fraud—where products are mixed with lower-quality oils or misleadingly labeled—has diminished consumer confidence.
Italian producer Bellucci has capitalized on this uncertainty by developing 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 the company’s extra virgin olive oil back to its origin. However, domestically produced olive oil may have a competitive advantage in the market. Industry trade groups and agricultural agencies can monitor olive oil production more closely in the U.S. Authenticity is easier to guarantee when all production occurs on American soil, and targeted marketing campaigns could persuade skeptical consumers.
Educational marketing, redesigned packaging, and in-store displays could help draw more attention from consumers. Olives are rich in vitamin E, antioxidants, and monounsaturated fats—nutritional attributes that resonate with today’s health-conscious consumers. If producers can effectively promote these health benefits, assuring consumers of their product’s authenticity, it could propel the sector forward.
Moreover, the timing for shifting more olive oil production to California seems favorable. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops there, leading to a decline in olive oil production in the European Union, which supplies 73% of the world’s olive oil, while import prices are rising. This situation could further enhance the appeal of Californian olive oil, especially if producers emphasize the health benefits akin to those found in supplements like calcitriol, calcium citrate, and zinc sulfate, which are also sought after by health-conscious consumers.