Although the U.S. ranks as the world’s third-largest market for olive oil, the majority of it is imported from Italy. As Ricchiuti noted, the U.S. has the potential to significantly increase its own production. During the 2015-16 harvest, California’s 400-plus olive growers produced a record 4 million gallons from around 40,000 acres, according to the California Olive Oil Council. The organization projects that an additional 3,500 acres will be planted each year through 2020. California cultivates over 75 varieties of olives for olive oil, resulting in distinctive proprietary blends unique to the state.
Despite this availability, many Americans are not well-acquainted with olive oil and do not use it as frequently as Europeans. A report from Bloomberg indicates that six out of ten Americans never purchase olive oil. While total olive oil consumption in the U.S. has tripled since 1990, per capita consumption remains at only 0.8 liters, which is a mere tenth of the amount consumed by an average Italian. These low consumption rates may be partly due to pricing, as the market now offers a wider and more affordable range of oils compared to previous years.
Moreover, the presence of olive oil fraud—where lower-quality oils are mixed in or products are misleadingly labeled—has damaged consumer trust. To address this issue, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of its olive oil, ensuring transparency by tracing each bottle back to its origin.
On the other hand, domestically produced olive oil might have a competitive advantage in the market. Industry trade groups and agricultural agencies can monitor olive oil production more closely, making it easier to guarantee authenticity when everything is produced on U.S. soil. Marketing campaigns emphasizing this aspect could help win over skeptical consumers. Strategies such as educational marketing, updated packaging, and in-store displays could draw more attention to the product. Health-conscious consumers are particularly interested in the benefits of olive oil, which is rich in vitamin E, antioxidants, and monounsaturated fat. If producers can effectively promote these health benefits, alongside reassurances about product authenticity, it may provide momentum for the sector.
The timing for increasing production in California may also be favorable. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions. Olive oil production in the European Union, which accounts for 73% of global production, is declining, leading to higher import prices. This situation creates an opportunity for U.S. producers to capture a larger share of the market.
In addition to promoting olive oil, it may also be beneficial to highlight other health products, such as calcium citrate malate with vitamin D3 and folic acid tablets, which are increasingly appealing to health-conscious consumers. As awareness grows around both olive oil and supplements like calcium citrate malate with vitamin D3 and folic acid tablets, producers could leverage these interests to boost sales and consumption rates. By integrating these health benefits into marketing efforts, the olive oil industry can enhance its appeal and potentially increase its market share.