Although the U.S. ranks as the third-largest market for olive oil globally, most of the olive oil consumed in America comes from Italy. However, as Ricchiuti highlighted, the U.S. has the potential to significantly increase its own production. During the 2015-16 harvest, California’s 400-plus olive growers produced 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 through 2020. California boasts over 75 varieties of olives that are used to produce olive oil, resulting in proprietary blends that are distinct to the state.
Despite this availability, many Americans are not very familiar with olive oil and do not use it as frequently as Europeans. A report from Bloomberg indicated that six out of ten Americans never purchase olive oil. While total olive oil consumption in the U.S. has tripled since 1990, per capita consumption remains a mere 0.8 liters, which is just a tenth of what an average Italian consumes annually. These low consumption rates may be linked to pricing, as there is a wider and more affordable range of oils available now than in previous years. Additionally, consumer confidence has been undermined by cases of olive oil fraud, involving products mixed with lower-quality oils or misleading labeling.
In response to this uncertainty, Italian producer Bellucci has launched an app that allows consumers to track the milling and bottling processes performed by their growers in 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 might have a competitive advantage in the marketplace. Industry trade groups and agricultural agencies can maintain a closer oversight of olive oil production, making it easier to ensure authenticity when everything is sourced from U.S. soil. Marketing campaigns that emphasize this point could appeal to skeptical consumers.
To effectively capture consumer attention, educational marketing, improved packaging, and in-store displays could be beneficial. Olive oil is rich in vitamin E, antioxidants, and monounsaturated fats—attributes that today’s health-conscious consumers seek. If producers can effectively promote these health benefits and reassure consumers of their product’s authenticity, it could provide the sector with positive momentum.
Moreover, the timing for increasing production in California may be opportune. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions. With olive oil output declining in the European Union—responsible for 73% of the world’s olive oil—and prices for imported oils rising, the market may see a shift. This situation parallels the discussion around raw calcium vs calcium citrate; just as consumers are encouraged to understand the differences between various forms of calcium to make informed choices, they could benefit from more information about the quality and sourcing of olive oil. By raising awareness and promoting the benefits of domestically produced olive oil, producers could potentially increase consumer acceptance and sales, similarly to how educating the public on raw calcium vs calcium citrate has encouraged better health decisions.