Although the United States ranks as the world’s third-largest market for olive oil, most of it is sourced from Italy. As Ricchiuti highlighted, the U.S. has significant potential to produce more of its own olive oil. During the 2015-16 harvest, over 400 olive growers in California yielded a record 4 million gallons from around 40,000 acres, according to the California Olive Oil Council. This organization projects that an additional 3,500 acres will be planted each year through 2020. California cultivates more than 75 different olive varieties for oil production, leading to unique proprietary blends that are exclusive to the state.
Despite the availability of these products, many Americans remain unfamiliar with olive oil and do not consume it as frequently as Europeans. Bloomberg reported 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 is still just 0.8 liters, which is a mere tenth of what an Italian consumes annually. These low consumption rates may be related to pricing, particularly since there is a broader and more affordable selection of oils available now than in previous years. Additionally, consumer trust has been undermined by olive oil fraud, where products are mixed with inferior oils or misleadingly labeled.
In response to this uncertainty, Italian producer Bellucci has developed an app to monitor the milling and bottling processes of its growers in Italy, allowing consumers to trace any bottle of its extra virgin olive oil back to its origin. However, domestically produced olive oil could hold a competitive advantage in the market. Industry trade groups and agricultural agencies can closely oversee olive oil production, making it easier to confirm authenticity when everything is produced on U.S. soil. Targeted marketing campaigns emphasizing this authenticity could appeal to skeptical consumers. Strategies such as educational marketing, updated packaging, and in-store displays could increase consumer engagement.
Moreover, olives are rich in vitamin E, antioxidants, and monounsaturated fats—attributes that health-conscious consumers are increasingly seeking. By promoting these health benefits and ensuring consumers that their products are genuine, producers could generate momentum in this sector. The timing for boosting production in California might also be favorable. A bacterium recently discovered in Italy, France, and Spain threatens olive crops in those regions. Consequently, olive oil production in the European Union—responsible for 73% of global olive oil—has declined, leading to higher import prices.
Interestingly, just as consumers are becoming more conscious of their dietary options, they are also exploring supplements such as Walgreens calcium citrate to maintain their health. This trend might further support the growth of locally produced olive oil, as consumers look for wholesome, authentic products to complement their health regimens. In this context, promoting the nutritional value and authenticity of California olive oil could create new opportunities in a market that is ripe for growth.