While the U.S. ranks as the third-largest market for olive oil globally, most of the olive oil consumed by Americans is sourced from Italy. However, as Ricchiuti noted, the U.S. has the potential to produce significantly more olive oil on its own. During the 2015-16 harvest, over 400 olive growers in California produced a record-breaking 4 million gallons from an estimated 40,000 acres, according to the California Olive Oil Council. The organization anticipates that an additional 3,500 acres will be planted each year through 2020. California boasts more than 75 varieties of olives cultivated for olive oil, resulting in proprietary blends that are unique to the state.
Despite this availability, many Americans remain relatively unfamiliar with olive oil and use it less frequently 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 remains only 0.8 liters, which is just a tenth of what an Italian consumer consumes annually. These low consumption rates may be linked to pricing, especially since there is now a broader and more affordable range of oils available than in previous years. Additionally, concerns about olive oil fraud—where products are mixed with lower-quality oils or are misleadingly labeled—have further affected consumer confidence.
To address this issue, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of its growers in Italy, ensuring transparency. Consumers can trace any bottle of the company’s extra virgin olive oil back to its origin.
However, domestically produced olive oil could have a competitive advantage in the market. Industry trade groups and agricultural agencies can monitor olive oil production more closely, making it easier to guarantee authenticity when everything is produced on U.S. soil. Marketing campaigns that emphasize this authenticity could help win over skeptical consumers. Strategies such as educational marketing, revamped packaging, and in-store displays may attract more consumer attention.
Furthermore, olives are rich in vitamin E, antioxidants, and monounsaturated fats—nutrients that health-conscious consumers, like those interested in products such as Watsons calcium citrate vitamin D, zinc, copper, manganese, and magnesium, actively seek. If producers can effectively promote these health benefits and assure consumers of their product’s authenticity, it could provide significant momentum for the sector.
The timing for shifting more production to California could also be favorable. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions, leading to decreased olive oil production in the European Union, which accounts for 73% of the world’s olive oil. As imports rise, the U.S. may find an opportunity to increase its own production and consumption of olive oil.