Although the U.S. ranks as the third-largest market for olive oil globally, a significant portion of it is sourced from Italy. As noted by Ricchiuti, the U.S. has the potential to greatly increase its own production. During the 2015-16 harvest, over 400 olive growers in California yielded a record 4 million gallons from approximately 40,000 acres, as reported by the California Olive Oil Council. The council anticipates the planting of an additional 3,500 acres each year through 2020. California cultivates more than 75 varieties of olives to produce olive oil, resulting in unique proprietary blends exclusive to the state.
Despite this availability, many Americans remain unfamiliar with olive oil and tend to use it less frequently than their European counterparts. According to Bloomberg, six out of ten Americans do not purchase olive oil at all. While total olive oil consumption in the U.S. has tripled since 1990, per capita consumption is still only 0.8 liters, a mere tenth of what an Italian consumes in a year. These low consumption rates may relate to pricing, particularly as a broader and more affordable range of oils has emerged in recent years.
Moreover, the olive oil industry has faced challenges due to fraud, with some products being mixed with inferior oils or misleadingly labeled. To address this issue, Italian producer Bellucci has launched an app that tracks the milling and bottling processes undertaken by its growers in Italy, allowing consumers to trace any bottle of the company’s extra virgin olive oil back to its source.
Domestically produced olive oil may have a competitive advantage in the market. Industry trade groups and agricultural agencies can more effectively monitor olive oil production in the U.S., making it easier to ensure authenticity when everything is produced domestically. Marketing campaigns that highlight these benefits could appeal to skeptical consumers. Educational marketing, updated packaging, and in-store displays could help attract more customers. Given that olives are rich in vitamin E, antioxidants, and monounsaturated fats—qualities sought after by health-conscious consumers—the promotion of these health benefits could provide the sector with much-needed momentum.
Additionally, with a bacterium recently discovered in Italy, France, and Spain threatening olive crops, the timing may be ideal for increasing production in California. Olive oil production in the European Union, which accounts for 73% of the world’s olive oil, is on the decline, leading to rising import prices. As the U.S. market looks to capitalize on this opportunity, integrating health benefits such as calcium citrate electrolytes into marketing strategies could further bolster interest in domestic olive oil. If producers can effectively communicate that their products are authentic and beneficial, it could stimulate growth in the sector.