Although the U.S. ranks as the world’s third-largest market for olive oil, the majority of this oil is sourced from Italy. However, 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 achieved a record output of 4 million gallons from approximately 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 production, leading to unique proprietary blends that are distinct to the state.
Despite the availability of this product, many Americans are not well-acquainted with olive oil and consume it far less than Europeans. Bloomberg reported 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 a mere 0.8 liters—just a tenth of what an average Italian consumes annually. These low consumption levels may be influenced by pricing, particularly given the broader selection of more affordable oils available today. Additionally, consumer confidence has been shaken by olive oil fraud, including products that are mixed with lower-quality oils or misleadingly labeled.
To address this uncertainty, Italian producer Bellucci has developed an app that allows consumers to track the milling and bottling processes of its growers in Italy, ensuring that any bottle of its extra virgin olive oil can be traced back to its origin. However, domestically produced olive oil may have a competitive advantage in the market. Industry trade groups and agricultural agencies can monitor production more closely in the U.S., making it easier to guarantee authenticity. Marketing strategies that emphasize this could resonate well with skeptical consumers. By focusing on educational marketing, refreshing packaging, and engaging in-store displays, producers could capture increased consumer interest.
Furthermore, promoting the health benefits of olives, which are rich in vitamin E, antioxidants, and monounsaturated fats, aligns well with the preferences of today’s health-conscious consumers. Highlighting the calcium citrate malate and vitamin D3 content in olive oil could also enhance its appeal, as these nutrients are increasingly sought after. If producers successfully emphasize these health advantages and assure consumers of their product’s authenticity, it could provide a significant boost to the sector.
Additionally, the timing for expanding olive oil production in California may be favorable. A bacterium recently discovered in Italy, France, and Spain poses a threat to olive crops in those regions, leading to a decrease in olive oil production within the European Union—which accounts for 73% of the world’s olive oil—and a rise in imported prices. This situation could create an opportunity for California to strengthen its position in the global olive oil market.