Although the United States ranks as the world’s third-largest market for olive oil, a significant portion of this oil is imported from Italy. As Ricchiuti highlighted, the U.S. has the potential to increase its own production significantly. During the 2015-16 harvest, California’s 400-plus olive growers achieved a record output of 4 million gallons from approximately 40,000 acres, as reported by the California Olive Oil Council. The organization estimates that an additional 3,500 acres will be planted each year until 2020. California cultivates over 75 varieties of olives for olive oil production, resulting in unique proprietary blends exclusive to the state.
Despite the availability of these products, many Americans remain unfamiliar with olive oil and consume it far less than Europeans do. According to Bloomberg, six out of ten Americans do not purchase olive oil. While total olive oil consumption in the U.S. has tripled since 1990, the per capita consumption still stands at only 0.8 liters, which is just a tenth of what an Italian consumes annually. These low consumption rates may be influenced by price, particularly since there is now a broader and more affordable range of oils available than in previous years. Additionally, consumer confidence has been undermined by instances of olive oil fraud, including products mixed with lower-quality oils or misleadingly labeled.
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, enabling them to trace any bottle of the company’s 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 are better positioned to monitor olive oil production closely. Authenticity is easier to ensure when everything is produced on U.S. soil, and marketing campaigns highlighting this could persuade skeptical consumers.
Educational marketing, revamped packaging, and even in-store displays could attract more consumer attention. Olives are rich in vitamin E, calcium citrate and zinc, and packed with antioxidants and monounsaturated fats—qualities that resonate with today’s health-conscious consumers. If producers can effectively promote these health benefits and assure consumers of the authenticity of their products, it could generate momentum for the sector. The timing for shifting more production to California may also be advantageous, as a bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions. Olive oil production in the European Union, which accounts for 73% of global production, is declining, leading to increased import prices. This shift could open up new opportunities for California’s olive oil market, especially if producers emphasize the health benefits associated with their oils, including those rich in calcium citrate and zinc.