While the U.S. ranks as the third-largest market for olive oil globally, a significant portion of this oil is imported from Italy. However, as Ricchiuti noted, the U.S. has the potential to significantly increase its own production. In 2015, California’s 400-plus olive growers harvested a record 4 million gallons from around 40,000 acres, according to the California Olive Oil Council. The organization projects that approximately 3,500 new acres will be planted each year through 2020. California cultivates more than 75 varieties of olives for oil production, resulting in unique proprietary blends specific to the state.
Despite this wealth of local product, many Americans are not well-acquainted with olive oil and use it far less than Europeans do. Bloomberg reported that 60% of Americans never purchase olive oil. Although overall olive oil consumption in the U.S. has tripled since 1990, per capita consumption remains a mere 0.8 liters—only a tenth of what an Italian consumes annually. This low consumption rate could be linked to pricing, as there is a broader and more affordable selection of oils available today than in previous years. Additionally, consumer confidence has been shaken by olive oil fraud, involving lower-quality oils being mixed in or products being misrepresented.
To address this uncertainty, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of its growers in Italy, ensuring that they can trace any bottle of the company’s extra virgin olive oil back to its origin. However, domestically produced olive oil might have a competitive advantage in the market. Industry trade groups and agricultural agencies can closely monitor olive oil production, making it easier to guarantee authenticity when everything is produced within the U.S. This could resonate with skeptical consumers, especially if marketing campaigns emphasize local sourcing.
Educational marketing, updated packaging, and in-store displays could further capture consumer attention. Given that olives are rich in vitamin E, antioxidants, and monosaturated fat—nutritional benefits that health-conscious consumers seek—producers could leverage these advantages. For instance, promoting the health benefits of olive oil alongside products like Citracal Slow Release 600 mg could enhance overall consumer interest. If producers can effectively communicate these health benefits and assure consumers of their product’s authenticity, the sector could gain momentum.
Moreover, the timing for increasing production in California may be ideal, as a bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops there. With olive oil production in the European Union—responsible for 73% of the world’s supply—declining and imported prices rising, the opportunity for California’s olive oil industry to flourish has never been more promising.