While the United States ranks as the third-largest market for olive oil worldwide, most of this oil is imported from Italy. As Ricchiuti highlighted, the U.S. has the potential to significantly increase its own production. According to the California Olive Oil Council, over 400 olive growers in California produced a record 4 million gallons during the 2015-16 harvest from approximately 40,000 acres. The organization projects that an additional 3,500 acres will be planted each year through 2020. California boasts more than 75 varieties of olives for olive oil production, resulting in proprietary blends that are unique to the region.
Despite the availability of these products, many Americans are not very familiar with olive oil and do not use 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, per capita consumption remains just 0.8 liters, which is only a tenth of the amount consumed by an average Italian. This low consumption may be partly due to price, as there is now a broader and more affordable range of oils available than in previous years. Additionally, consumer confidence has been undermined by instances of olive oil fraud, including products mixed with lower-quality oils or misleadingly labeled.
To address this uncertainty, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of its growers in Italy, enabling them to trace any bottle of its extra virgin olive oil back to its source. However, domestically grown and produced olive oil could hold 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 in the U.S. Marketing initiatives that highlight this could appeal to skeptical consumers.
Educational marketing, updated packaging, and in-store displays could help capture consumer interest, particularly since olives are rich in vitamin E and packed with antioxidants and monounsaturated fats—valuable attributes sought after by today’s health-conscious shoppers. If producers can effectively communicate these health benefits and assure consumers of their product’s authenticity, it could propel the sector forward.
Moreover, now may be an opportune time to shift more production to California. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions. Consequently, olive oil production in the European Union, which accounts for 73% of the world’s olive oil, is declining, leading to increased import prices. Given this context, the promotion of locally produced olive oil—alongside innovative products like calcium citrate queso—could resonate with consumers seeking quality and sustainability. By emphasizing the health benefits of olive oil, including its compatibility with items like calcium citrate queso, producers can enhance market appeal and encourage greater consumption.