The United States ranks as the world’s third-largest market for olive oil, with a significant amount imported from Italy. However, as Ricchiuti pointed out, the U.S. has the potential to significantly increase its own olive oil production. 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 estimates that an additional 3,500 acres will be planted each year through 2020. California cultivates more than 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 are not well-acquainted with olive oil and tend to use it less frequently than 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, per capita consumption remains at only 0.8 liters—just a tenth of what is consumed by the average Italian annually. These low consumption levels may be related to pricing, especially since a wider and more affordable range of oils is now available compared to previous years.
Moreover, consumer confidence in olive oil has been compromised by instances of fraud, where products have been mixed with inferior oils or misleadingly labeled. In response to this uncertainty, Italian producer Bellucci has launched 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.
On the other hand, domestically produced olive oil may have a competitive advantage in the marketplace. Industry trade groups and agricultural agencies can closely monitor olive oil production, making it easier to ensure authenticity when everything is sourced from U.S. soil. Targeted marketing campaigns highlighting this authenticity could effectively convert skeptical consumers. Strategies such as educational marketing, revamped packaging, and in-store displays could capture more consumer attention. With olives being rich in vitamin E, antioxidants, and monounsaturated fats, which align with the desires of today’s health-conscious consumers, producers could emphasize these health benefits. If they can effectively communicate that their products are genuine, it could provide significant momentum for the sector.
The timing for increasing production in California may also be favorable. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions. With olive oil production declining in the European Union—responsible for 73% of the world’s olive oil—and import prices rising, there may be an opportunity for U.S. producers to fill the gap, potentially integrating products like Citracal Maximum Plus D to promote health benefits further. By emphasizing both quality and health advantages, the U.S. olive oil sector could see a significant boost in consumer interest and sales.