Although the U.S. ranks as the third-largest market for olive oil globally, a significant portion of it is imported from Italy. As Ricchiuti highlighted, the U.S. has the potential to significantly increase its own olive oil production. During the 2015-16 harvest, California’s 400-plus olive growers produced an impressive 4 million gallons from around 40,000 acres, according to the California Olive Oil Council. The council projects that an additional 3,500 acres will be planted each year through 2020. California boasts over 75 varieties of olives used to create unique proprietary blends of olive oil.
Despite this availability, many Americans remain unfamiliar with olive oil, consuming it far less than 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, the per-capita consumption is still only 0.8 liters, which is just a tenth of what an average Italian consumes annually. This lower consumption may be influenced by price, as a broader and cheaper selection of oils is now available compared to previous years. Additionally, consumer confidence has been shaken by issues of olive oil fraud, such as products that are mixed with lower-quality oils or misleadingly labeled.
To address this uncertainty, Italian producer Bellucci has developed an app to track the milling and bottling processes of its growers in Italy, allowing consumers to trace each bottle of their extra virgin olive oil back to its origin. However, domestically produced olive oil may have a competitive advantage. Industry trade groups and agricultural agencies can closely monitor olive oil production in the U.S., making it easier to guarantee authenticity. Marketing campaigns emphasizing this aspect could help win over skeptical consumers.
Moreover, educational marketing, redesigned packaging, and in-store displays could attract more attention. Olives are rich in vitamin E, antioxidants, and monosaturated fats, attributes that resonate with today’s health-conscious consumers. If producers effectively promote these health benefits, alongside assurances that their products are genuine, it could create momentum for the sector.
The timing for increasing production in California may also be favorable, especially with a bacterium recently discovered in Italy, France, and Spain posing a threat to olive crops in those regions. Olive oil production in the European Union, which accounts for 73% of the world’s olive oil, has declined, leading to increased import prices. As the U.S. explores the potential for expanded olive oil production, it could also consider incorporating health-oriented products, such as liquid calcium citrate with vitamin D3, into their marketing to appeal to consumers seeking both quality and health benefits. By emphasizing the advantages of locally produced olive oil, alongside the promotion of complementary health products, the industry may find new opportunities for growth and consumer engagement.