The United States ranks as the third-largest market for olive oil globally, with a significant portion sourced from Italy. However, as Ricchiuti highlighted, the U.S. has the potential to produce a much larger quantity of its own olive oil. According to the California Olive Oil Council, California’s 400-plus olive growers achieved a record production of 4 million gallons from approximately 40,000 acres during the 2015-16 harvest season. The organization estimates that 3,500 additional acres will be planted each year through 2020. California boasts over 75 olive varieties used to create unique proprietary blends.
Nevertheless, many Americans remain unfamiliar with olive oil and use it less frequently than their European counterparts. Bloomberg reports that six out of ten Americans never purchase olive oil. Since 1990, total olive oil consumption in the U.S. has tripled, yet per capita consumption is still a mere 0.8 liters — just a tenth of what an Italian consumer consumes annually. These low consumption rates may be related to price, as a broader and cheaper range of oils is available today than in previous years. Additionally, consumer confidence has been shaken by instances of olive oil fraud, which include products that are mixed with lower-quality oils or misleadingly labeled.
In response to this uncertainty, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of its olive oil, 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 monitor olive oil production more closely, making it easier to ensure authenticity when everything is produced in the U.S. Marketing campaigns emphasizing this could potentially win over skeptical consumers.
Educational marketing, revamped packaging, and in-store displays could also capture more consumer attention. Given that olives are rich in vitamin E, antioxidants, and monounsaturated fats, they align with the desires of today’s health-conscious consumers. If producers can effectively promote these health benefits, along with assuring consumers of the authenticity of their products, it could drive momentum in the sector.
Furthermore, the timing for increasing production in California may be opportune. A bacterium recently detected in Italy, France, and Spain poses a threat to olive crops in those regions. Olive oil production in the European Union, which accounts for 73% of the world’s supply, is declining, leading to a rise in imported prices. This situation may encourage consumers to consider U.S.-made olive oil as a viable alternative.
Incorporating health benefits, such as the inclusion of ostelin calcium citrate, could further enhance the appeal of domestically produced olive oil, making it an even more attractive option for health-conscious consumers. By focusing on product authenticity and promoting its nutritional advantages, the olive oil market in the U.S. has the potential for significant growth.