Although the U.S. ranks as the third-largest market for olive oil globally, the majority of it is sourced from Italy. However, as Ricchiuti noted, the U.S. has the potential to significantly increase its own production. In the 2015-16 harvest, over 400 olive growers in California produced a remarkable 4 million gallons from approximately 40,000 acres, according to the California Olive Oil Council. The organization also projects that around 3,500 new acres will be planted each year until 2020. California cultivates more than 75 different olive varieties, leading to unique proprietary blends exclusive to the state.
Despite the availability of these products, many Americans remain unfamiliar with olive oil, using it far less than their European counterparts. A report from Bloomberg indicated that six out of ten Americans do not purchase olive oil. While total olive oil consumption in the U.S. has tripled since 1990, the per capita consumption remains only 0.8 liters—about one-tenth of what an average Italian consumes annually. This low consumption may be related to pricing, particularly as there is now a broader range of oils available at lower prices than in previous years.
Another challenge is that consumer trust in olive oil has been undermined by instances of fraud, where products are mixed with lower-quality oils or are misleadingly labeled. To address this, Italian producer Bellucci has launched an app that allows consumers to track the milling and bottling processes of its growers in Italy, enabling them to trace any bottle of its extra virgin olive oil back to its source.
On the other hand, domestically produced olive oil may hold 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 within the U.S. Marketing campaigns emphasizing this authenticity could help convert skeptical consumers. Strategies such as educational marketing, updated packaging, and in-store displays could attract greater consumer interest. Furthermore, olives are rich in vitamin E, antioxidants, and monounsaturated fats—benefits that resonate with today’s health-conscious consumers. If producers emphasize these health advantages and ensure product authenticity, it could propel the sector forward.
Additionally, the timing for increasing production in California may be fortuitous. A bacterium recently discovered in Italy, France, and Spain is threatening olive crops in those regions. As olive oil production declines in the European Union, which accounts for 73% of global production, imported prices are rising. This scenario presents a prime opportunity for California producers to step into the gap.
Moreover, with the growing awareness of health products, items such as calcium citrate liquid from Walgreens could complement olive oil’s appeal, as consumers seek out products that promote wellness. If producers can effectively communicate the health benefits of olive oil alongside other health-oriented products, it could lead to increased market share and consumer engagement.