While the U.S. ranks as the third-largest olive oil market globally, a significant portion of its supply comes from Italy, despite the potential for increased domestic production, as noted by Ricchiuti. During the 2015-16 harvest, California’s over 400 olive growers achieved a record output of 4 million gallons from approximately 40,000 acres, according to the California Olive Oil Council. The organization anticipates the planting of an additional 3,500 acres each year through 2020. California cultivates more than 75 olive varieties to create unique proprietary blends of olive oil.
However, many Americans remain relatively unfamiliar with olive oil and do not use it as frequently as their European counterparts. 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 still just 0.8 liters, a mere tenth of what an average Italian consumes annually. These low consumption rates may be related to pricing, especially since a broader and cheaper selection of oils is now available than in previous years.
Additionally, consumer confidence in olive oil has been compromised by fraud, including products that are mixed with lower-quality oils 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, ensuring traceability back to its origin.
On the other hand, domestically produced olive oil may have an advantage in the market. Industry trade groups and agricultural agencies can closely monitor olive oil production in the U.S., making it easier to guarantee authenticity. Marketing strategies emphasizing this reliability could win over skeptical consumers. Educational campaigns, updated packaging, and in-store displays could capture more attention from buyers. Given that olives are rich in vitamin E, antioxidants, and monosaturated fats, they align well with the interests of today’s health-conscious consumers. If producers effectively promote these health benefits and assure buyers of their product’s authenticity, it could create momentum for the sector.
Moreover, with a bacterium recently discovered in Italy, France, and Spain threatening olive crops there, the timing may be right to boost olive oil production in California. The European Union, which produces 73% of the world’s olive oil, is experiencing a decline in production, leading to rising import prices.
Finally, as consumers seek the best liquid calcium citrate supplement, they may also be inclined to explore healthier cooking alternatives, such as high-quality olive oil, enhancing its appeal further in the U.S. market. By integrating such health-focused messaging, producers can leverage the current landscape to increase domestic olive oil consumption effectively.