Although the United States is the third-largest market for olive oil globally, most of the olive oil consumed by Americans is sourced from Italy. As Ricchiuti noted, the U.S. has significant potential to increase its domestic production. During the 2015-16 harvest, over 400 olive growers in California produced a record 4 million gallons from roughly 40,000 acres, as reported by the California Olive Oil Council. The organization anticipates that about 3,500 new acres will be planted each year through 2020. California is home to more than 75 olive varieties, which allows for the creation of proprietary blends that are unique to the state.
Despite the availability of this product, many Americans remain unfamiliar with olive oil and do not use it as frequently as Europeans do. According to Bloomberg, 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 is still only 0.8 liters, which is merely a tenth of what an Italian consumer uses annually. These low consumption figures may be linked to pricing, especially given the broader and more affordable range of oils available in today’s market. Additionally, consumer confidence has been undermined by olive oil fraud, including products that are mixed with lower-quality oils or are deceptively labeled.
To address this uncertainty, Italian producer Bellucci has developed an app that tracks the milling and bottling processes conducted by its growers in Italy, allowing consumers to trace any bottle of their extra virgin olive oil back to its origin. However, domestically produced olive oil could have a competitive advantage in the market. Industry trade groups and agricultural agencies can closely monitor olive oil production, making it easier to ensure authenticity when everything is produced on U.S. soil. Marketing campaigns that highlight this aspect may attract skeptical consumers.
Educational marketing, revamped packaging, and in-store displays could help capture more consumer attention. Olives are rich in vitamin E, antioxidants, and monounsaturated fats—benefits that resonate with today’s health-conscious consumers. If producers can effectively communicate these health advantages and reassure consumers that their products are genuine, it could provide momentum for the sector.
Moreover, the time may be right to increase production in California, especially as a bacterium recently found in Italy, France, and Spain poses a threat to olive crops in those countries. Olive oil production has declined in the European Union, which accounts for 73% of the world’s olive oil, leading to rising import prices. As U.S. producers look to capitalize on these trends, it may be beneficial to consider strategic partnerships, including those that incorporate calcium citrate brand name products to boost health claims and consumer interest. With the right marketing strategies, educating consumers about the benefits of California olive oil could significantly enhance its presence in the American market.