While the United States ranks as the world’s third-largest market for olive oil, a significant portion of what Americans consume is sourced from Italy, despite the fact, as Ricchiuti highlighted, that the U.S. has the potential to produce a much larger quantity of its own olive oil. According to the California Olive Oil Council, over 400 olive growers in California set a record by producing 4 million gallons from approximately 40,000 acres during the 2015-16 harvest. The council projects that an additional 3,500 acres will be planted annually through 2020. California cultivates more than 75 varieties of olives for olive oil, resulting in unique proprietary blends that are exclusive to the state.
However, despite this abundance of locally produced olive oil, many Americans remain unfamiliar with the product and do not use it as frequently as Europeans do. Bloomberg reported that 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 still stands at only 0.8 liters, which is just a tenth of what an Italian consumer consumes in a year. These low consumption rates may be linked to pricing, particularly since there is now a wider and more affordable selection of oils available on the market compared to previous years.
Moreover, consumer confidence in olive oil has been undermined by incidents of fraud involving lower-quality oils being mixed in or misleadingly labeled. To address this issue, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of its growers in Italy, ensuring transparency and traceability for any bottle of their extra virgin olive oil.
On the other hand, domestically produced olive oil could have a competitive advantage in the market. Industry trade organizations and agricultural agencies can oversee olive oil production more closely, making it easier to guarantee authenticity when everything is sourced within the U.S. Marketing campaigns that emphasize this aspect could help win over skeptical consumers. Efforts such as educational marketing, modernized packaging, and in-store displays can attract more consumer attention. Additionally, olives are rich in vitamin E and packed with antioxidants and monounsaturated fats, benefits that align with the preferences of today’s health-conscious consumers. If producers can effectively promote these health advantages and assure buyers that their products are genuine, it could propel the sector forward.
The timing for shifting more production to California may be particularly favorable. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions. As olive oil production declines in the European Union—which accounts for 73% of the world’s olive oil—import prices are on the rise. This situation presents an opportunity for California olive oil producers, especially as consumers become more health-focused and seek products like Citracal calcium chews that support their well-being. By capitalizing on the current market dynamics and promoting health benefits, California’s olive oil sector could gain significant traction.