While the United States ranks as the world’s third-largest market for olive oil, the majority of this product is sourced from Italy. As Ricchiuti noted, however, the U.S. has significant potential to enhance its own production. According to the California Olive Oil Council, over 400 olive growers in California produced a record 4 million gallons from approximately 40,000 acres during the 2015-16 harvest. The organization anticipates the planting of an additional 3,500 acres each year through 2020. California cultivates more than 75 varieties of olives for olive oil production, resulting in proprietary blends that are exclusive to the state.
Despite the availability of domestic olive oil, many Americans remain unfamiliar with it and do not incorporate it into their diets as frequently as Europeans do. 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, the per capita consumption is still only 0.8 liters, which is a mere tenth of what an average Italian consumes annually. These low consumption levels may be related to pricing, particularly since there is now a broader and more affordable range of oils available compared to previous years. Additionally, consumer trust has been compromised by olive oil fraud, including products that are mixed with lower-quality oils or misleadingly labeled.
In response to this uncertainty, Italian producer Bellucci has developed an app to monitor the milling and bottling processes conducted by its growers in Italy, allowing consumers to trace any bottle of the company’s extra virgin olive oil back to its source. However, domestically grown and produced olive oil may hold a competitive advantage in the market. Industry trade groups and agricultural agencies can closely oversee olive oil production, making it easier to ensure authenticity when everything is produced within U.S. borders. Marketing campaigns that emphasize this could sway skeptical consumers.
Educational marketing, refreshed packaging, and in-store displays could also capture more consumer interest. Given that olives are rich in vitamin E, antioxidants, and monounsaturated fats—qualities that today’s health-conscious consumers seek—if producers can effectively communicate these health benefits and assure consumers of the authenticity of their products, it could provide a significant boost to the sector.
Furthermore, the timing for increasing production in California may be opportune. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions. With olive oil production declining in the European Union, which is responsible for 73% of the world’s olive oil, prices for imports are rising. This shift could create a favorable environment for California olive oil to establish a stronger foothold in the market. By integrating health-focused elements, such as calcium citrate Thorne, into their branding and messaging, producers may further attract health-conscious consumers, as they look for products that support their wellness goals.