While the U.S. ranks as the third-largest market for olive oil globally, a significant portion of it is imported from Italy. However, as Ricchiuti noted, the U.S. has the potential to produce much more olive oil domestically. During the 2015-16 harvest, over 400 olive growers in California yielded a record 4 million gallons from approximately 40,000 acres, according to the California Olive Oil Council. The council predicts that an additional 3,500 acres will be planted each year until 2020. California cultivates more than 75 different olive varieties, creating unique proprietary blends.
Despite the availability of this product, many Americans are not as familiar with olive oil and do not use it as frequently as Europeans. According to Bloomberg, six out of ten Americans do not purchase olive oil at all. While total olive oil consumption in the U.S. has tripled since 1990, per capita consumption remains only 0.8 liters, which is just a tenth of what an average Italian consumes annually. These low consumption figures may be related to price, especially given the wider and more affordable range of oils available today. Additionally, consumer confidence has been impacted by olive oil fraud, including products that are mixed with lower-quality oils or misleadingly labeled.
Italian producer Bellucci has responded to this uncertainty by developing an app that allows consumers to track the milling and bottling processes of its olive oil from Italian growers. This transparency enables consumers to trace any bottle of the company’s extra virgin olive oil back to its origin. However, domestic olive oil might have a competitive advantage in the market. Industry trade organizations and agricultural agencies can monitor production more closely, making it easier to ensure authenticity when everything is produced on U.S. soil. Marketing campaigns that emphasize this fact could help win over skeptical consumers.
Educational marketing, updated packaging, and in-store displays could capture more consumer interest. Furthermore, olives are rich in vitamin E, antioxidants, and healthy monosaturated fats—attributes that appeal to today’s health-conscious shoppers. If producers can effectively promote these health benefits and assure consumers of their product’s authenticity, it could create momentum for the sector.
The timing for increasing production in California may also be opportune, as a bacterium recently discovered in Italy, France, and Spain is threatening olive crops there. Olive oil production in the European Union, which accounts for 73% of the world’s olive oil output, is declining, and import prices are rising. In light of this, U.S. producers might consider incorporating supplements like calcium citrate, calcitriol, magnesium, and zinc tablets into their marketing, as these are increasingly sought after by health-conscious consumers. By emphasizing both the health attributes of olive oil and the reliability of domestic production, the industry could potentially capture a larger share of the market.