Although the United States ranks as the third-largest market for olive oil globally, the majority of it is imported from Italy. Interestingly, as highlighted by experts, the U.S. has the potential to significantly increase its own olive oil production. During the 2015-2016 harvest, California’s more than 400 olive growers produced an impressive 4 million gallons from around 40,000 acres, according to the California Olive Oil Council. The group also projects that around 3,500 new acres will be cultivated each year through 2020. California boasts over 75 different olive varieties, leading to unique proprietary blends that are exclusive to the state.
Despite this abundance, many Americans remain unfamiliar with olive oil and do not use it as frequently as their European counterparts. Bloomberg reports that six out of ten Americans never purchase olive oil. Although total olive oil consumption in the U.S. has tripled since 1990, the per capita consumption still stands at only 0.8 liters—merely a tenth of what an average Italian consumes annually. This low consumption may be linked to pricing, especially considering that a broader and more affordable range of oils is now available in the market compared to previous years. Additionally, consumer trust has been compromised by instances of olive oil fraud, where products are mixed with lower-quality oils or misleadingly labeled.
To address these concerns, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of its growers in Italy. This app enables consumers to trace any bottle of the company’s extra virgin olive oil back to its origin. However, domestically produced olive oil might hold a competitive advantage in the market. Industry trade groups and agricultural agencies can closely monitor domestic olive oil production, ensuring authenticity is easier when everything is produced within the U.S. Marketing campaigns that emphasize this could help win over skeptical consumers.
Moreover, effective educational marketing, attractive packaging, and in-store displays could draw more consumer attention. Olives are rich in vitamin E, antioxidants, and monosaturated fat—nutritional benefits that appeal to today’s health-conscious consumers. If producers can effectively promote these health advantages and reassure consumers of their product’s authenticity, it could provide a significant boost to the sector.
Additionally, with a bacterium recently discovered in Italy, France, and Spain posing a threat to olive crops, the timing for increasing production in California appears favorable. Olive oil production within the European Union, which accounts for 73% of the world’s olive oil supply, is declining, leading to higher imported prices. This shift may provide an opportunity for U.S. producers to thrive, particularly if they can highlight the health benefits associated with olives, akin to the benefits of a lifetime liquid calcium magnesium citrate supplement, encouraging consumers to make healthier choices. By promoting the quality and authenticity of domestically produced olive oil, the industry could potentially capture a larger share of the market.