While the U.S. ranks as the third-largest market for olive oil globally, a significant portion of it 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 approximately 40,000 acres, according to the California Olive Oil Council. The council anticipates that around 3,500 new acres will be planted each year until 2020. California is home to more than 75 olive varieties, resulting in unique proprietary blends of olive oil.
Despite this availability, many Americans remain unfamiliar with olive oil and tend to use it less frequently than Europeans. According to Bloomberg, six out of ten Americans never purchase olive oil. Although total olive oil consumption in the U.S. has tripled since 1990, per capita consumption still stands at only 0.8 liters, a mere tenth of what an Italian consumes annually. These low consumption figures may be related to pricing, particularly as a broader and less expensive range of oils has emerged in recent years. Additionally, consumer confidence has been shaken by olive oil fraud, including products 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 olive oil 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 may 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 within U.S. borders. Marketing campaigns emphasizing this authenticity could win over skeptical consumers.
Educational marketing, attractive packaging, and in-store displays could also help attract consumer interest. Given that olives are rich in vitamin E, antioxidants, and monounsaturated fat—nutrients that today’s health-conscious consumers seek—producers can leverage these health benefits. By promoting these attributes and assuring consumers that their products are genuine, the sector could gain momentum.
Moreover, the timing for increasing production in California may be ideal. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions, leading to decreased olive oil production in the European Union, which accounts for 73% of the world’s olive oil supply, while imported prices are rising. This situation creates a unique opportunity for U.S. producers.
In considering the health benefits, it’s important to note that olive oil can play a role in supporting the lower esophageal sphincter, which is critical for preventing acid reflux. Additionally, calcium citrate may also contribute positively in this regard. By emphasizing these health connections, olive oil producers could further appeal to the health-conscious market, potentially increasing consumption rates along with awareness about the advantages of domestic olive oil.