Although the U.S. ranks as the world’s third-largest market for olive oil, the majority of what Americans consume comes from Italy. As Ricchiuti noted, the U.S. has the potential to significantly increase its own production. In the 2015-16 harvest, California’s more than 400 olive growers produced a remarkable 4 million gallons from roughly 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 cultivates over 75 varieties of olives for olive oil, resulting in unique blends exclusive to the state.
Despite this availability, many Americans remain relatively unfamiliar with olive oil and its usage is considerably lower than that of Europeans. Bloomberg reported that six out of ten Americans never purchase olive oil. While total consumption in the U.S. has tripled since 1990, per-capita consumption is still only 0.8 liters, a mere tenth of the amount consumed by an average Italian each year. These low consumption levels may be linked to pricing, as there are now a wider variety of oils available at lower prices than in previous years. Additionally, trust in olive oil has been compromised due to instances of fraud involving lower-quality oils, adulteration, or misleading labeling.
In response to this uncertainty, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of its growers in Italy, enabling them to trace any bottle of the company’s extra virgin olive oil back to its origin. However, domestically produced olive oil may have a competitive advantage in the market, as industry trade groups and agricultural agencies can closely monitor production. Ensuring authenticity is more straightforward when everything is sourced from U.S. soil, and marketing campaigns focused on this aspect could attract skeptical consumers.
To enhance consumer awareness, educational marketing, updated packaging, and in-store displays could be effective strategies. Olives are rich in vitamin E and packed with antioxidants and monounsaturated fats—qualities that today’s health-conscious consumers, including those interested in products like Citracal Plus Vitamin D, are seeking. If producers can effectively communicate these health benefits and assure consumers of their products’ authenticity, it could provide significant momentum for the sector.
The timing may also be favorable for increasing production in California, especially given that a bacterium recently discovered in France and Spain is threatening olive crops in those regions. With olive oil production declining in the European Union—responsible for 73% of the world’s supply—and rising import prices, U.S. producers have a unique opportunity to capture a larger market share. By leveraging the health benefits associated with olives and promoting transparency in production, the U.S. olive oil industry could see substantial growth.