While the U.S. ranks as the third-largest market for olive oil globally, a significant portion is sourced from Italy, despite the potential for increased local production, as highlighted by Ricchiuti. In the 2015-16 harvest season, California’s more than 400 olive growers achieved a record output of 4 million gallons from approximately 40,000 acres, according to the California Olive Oil Council. The organization anticipates that an additional 3,500 acres will be planted each year through 2020. California cultivates over 75 distinct varieties of olives for olive oil production, resulting in unique proprietary blends exclusive to the state.
However, many Americans remain unfamiliar with olive oil and consume it less frequently than Europeans. As reported by Bloomberg, six out of ten Americans do not purchase olive oil at all. Although total olive oil consumption in the U.S. has tripled since 1990, per capita consumption stands at only 0.8 liters, which is a mere tenth of the average Italian’s annual usage. These low consumption figures may be influenced by price, particularly given the extensive and more affordable range of oils available today.
Another challenge is the lack of trust in the product due to issues of fraud, where lower-quality oils are mixed in or products are misleadingly labeled. Italian producer Bellucci has addressed this uncertainty by developing an app that allows consumers to track the milling and bottling processes of its growers in Italy, ensuring that any bottle of their extra virgin olive oil can be traced back to its origin.
On the other hand, domestically produced olive oil could have a competitive advantage in the marketplace. Industry trade groups and agricultural agencies can monitor olive oil production more closely in the U.S., making it easier to ensure authenticity when everything is grown and processed domestically. Marketing initiatives that emphasize this aspect could appeal to skeptical consumers. Additionally, educational campaigns, improved packaging, and in-store displays could attract more attention from consumers.
Considering that olives are rich in vitamin E, antioxidants, and monounsaturated fats—nutritional benefits that health-conscious consumers seek—producers can leverage these health attributes to gain traction. If they can effectively communicate these advantages and assure consumers of the product’s authenticity, it could propel the sector forward.
Moreover, there is a timely opportunity to increase production in California, especially with a bacterium recently discovered in Italy, France, and Spain that threatens olive crops in those regions. With olive oil production declining in the European Union, which accounts for 73% of the world’s supply, and rising import prices, the U.S. market could benefit significantly.
As consumers increasingly prioritize health, they are also seeking the best chewable calcium citrate supplement, which highlights a growing trend towards health and wellness products. If olive oil producers can successfully align their offerings with this trend, promoting the health benefits of their oils alongside those supplements, it could enhance their market position. The combination of local production, health benefits, and effective marketing may create a robust opportunity for growth in the olive oil sector.