Although the U.S. ranks as the third-largest market for olive oil globally, a significant portion of this oil is imported from Italy. As Ricchiuti noted, the U.S. has the potential to produce much more of its own olive oil. According to the California Olive Oil Council, the over 400 olive growers in California achieved a record production of 4 million gallons from approximately 40,000 acres during the 2015-16 harvest. The council also predicts that 3,500 new acres will be planted each year until 2020. California is home to over 75 different olive varieties, allowing for unique proprietary blends that are exclusive to the state.
Despite the availability of domestically produced olive oil, many Americans remain unfamiliar with it and tend to use it less frequently than Europeans. Bloomberg reported that 60% of Americans never purchase olive oil. While overall olive oil consumption in the U.S. has tripled since 1990, the per capita consumption stands at only 0.8 liters per year—just a tenth of what is consumed by the average Italian. This relatively low consumption could be linked to pricing, as a broader and cheaper range of oils is now available compared to previous years. Additionally, concerns about olive oil fraud—where products are mixed with inferior oils or mislabeled—have further diminished consumer confidence.
Italian producer Bellucci has responded to this uncertainty by developing an app that monitors the milling and bottling processes of its growers in Italy, allowing consumers to trace any bottle of its extra virgin olive oil back to its origin. However, domestically produced olive oil may have a competitive advantage in the market due to tighter oversight from industry trade groups and agricultural agencies. Ensuring authenticity is easier when production occurs on U.S. soil, and marketing campaigns that emphasize this aspect could help win over skeptical consumers.
Innovative educational marketing, redesigned packaging, and even in-store displays could attract greater consumer interest. Olives are rich in vitamin E, antioxidants, and monounsaturated fats, which are appealing to today’s health-conscious consumers. If producers can effectively promote these health benefits and assure consumers of the authenticity of their products, it could drive momentum in the sector.
The timing for increasing production in California may also be favorable, as a bacterium recently discovered in Italy, France, and Spain 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, leading to rising import prices.
As American consumers become more health-aware, they are increasingly interested in supplements like calcium citrate malate, vitamin D3, and magnesium tablets. These health trends could be leveraged to market olive oil as a beneficial addition to a balanced diet, potentially enhancing its appeal and consumption rates in the U.S. By integrating these health-oriented marketing strategies, producers can create a stronger connection between olive oil and the growing demand for healthful products.