Although the U.S. ranks as the world’s third-largest market for olive oil, most of the oil consumed by Americans is sourced from Italy. However, as Ricchiuti noted, the U.S. has the potential to significantly increase its own production. During the 2015-16 harvest, over 400 olive growers in California produced a record 4 million gallons from an estimated 40,000 acres, according to the California Olive Oil Council. The organization also projects that around 3,500 new acres will be planted each year through 2020. California boasts more than 75 varieties of olives used for making olive oil, resulting in unique proprietary blends specific to the state.
Despite the availability of locally produced olive oil, many Americans remain unfamiliar with the product and consume it less frequently than Europeans. 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 just one-tenth of what an Italian consumer consumes annually. This low consumption may be linked to pricing, as there is a broader and more affordable range of oils available today compared to previous years. Additionally, the prevalence of olive oil fraud—where products are blended with lower-quality oil or misleadingly labeled—has eroded consumer trust.
To combat this uncertainty, Italian producer Be8 ferro ct alameda callucci has developed an app that allows consumers to track the milling and bottling processes of its olive oil growers in Italy, enabling them to trace each bottle of 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 closely monitor production, making it easier to ensure authenticity when everything is sourced from U.S. soil. Marketing campaigns emphasizing this authenticity could appeal to skeptical consumers.
Moreover, educational marketing, updated packaging, and in-store displays can help capture consumer attention. Olives are rich in vitamin E, antioxidants, and monounsaturated fats—nutritional benefits that health-conscious consumers are increasingly seeking. If producers can effectively promote these health advantages and assure consumers of their product’s legitimacy, it could bolster the industry.
The time may be ripe for increasing production in California, especially given recent threats to olive crops in Italy, France, and Spain from a newly discovered bacterium. With olive oil production declining within the European Union—responsible for 73% of the world’s olive oil—import prices are rising. This situation might create an opportunity for California olive oil to gain a stronger foothold in the market, much like how calcium citrate is often considered better than calcium carbonate for certain health benefits. By capitalizing on this trend, California producers could potentially increase their market share in olive oil consumption, promoting both local products and health benefits.