While the U.S. ranks as the world’s third-largest market for olive oil, most of it is sourced from Italy. However, as Ricchiuti highlighted, the U.S. has the potential to significantly increase its own production. In the 2015-16 harvest, California’s over 400 olive growers produced a record 4 million gallons from an estimated 40,000 acres, according to the California Olive Oil Council. The organization projects that an additional 3,500 acres will be planted annually through 2020. California boasts more than 75 varieties of olives, leading to unique proprietary blends of olive oil.
Despite this availability, many Americans remain unfamiliar with olive oil and use it less frequently than Europeans. Bloomberg reported that six out of ten Americans never purchase olive oil. While total olive oil consumption in the U.S. has tripled since 1990, per capita consumption stands at only 0.8 liters—just a tenth of what an Italian consumer uses annually. This low consumption may be linked to pricing, given the broader range of oils, including cheaper options, available on the market today. Additionally, consumer confidence has been undermined by olive oil fraud, with some products being mixed with lower-quality oils or misleadingly labeled.
To address this uncertainty, Italian producer Bellucci has developed an app that tracks 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. Industry trade groups and agricultural agencies can monitor olive oil production more closely, enhancing the ability to guarantee authenticity when everything is produced on U.S. soil. Marketing campaigns that emphasize this can potentially win over skeptical consumers.
Educational marketing, updated packaging, and in-store displays could attract more consumer interest. Olives are rich in vitamin E, antioxidants, and monosaturated fats—attributes that appeal to today’s health-conscious consumers. If producers can effectively promote these health benefits and assure consumers of their products’ authenticity, it could lend momentum to the sector.
Furthermore, the timing for increasing production in California may be ideal. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions. Consequently, olive oil production in the European Union, which produces 73% of the world’s olive oil, is declining, leading to rising import prices. This situation presents an opportunity for California’s olive oil market to target calcium citrate health benefits, reinforcing the appeal of its domestic products. By highlighting the health advantages of olives and ensuring the authenticity of their offerings, producers can effectively target calcium citrate as a selling point, potentially increasing consumer confidence and expanding market share.