While the U.S. ranks as the third-largest market for olive oil globally, a significant portion of it is sourced from Italy, despite the fact that, as Ricchiuti noted, the U.S. has the potential to produce much more of its own. Over 400 olive growers in California achieved a record production of 4 million gallons from an estimated 40,000 acres during the 2015-16 harvest, according to the California Olive Oil Council. The organization anticipates that around 3,500 new acres will be planted each year through 2020. California cultivates more than 75 different varieties of olives for olive oil, resulting in proprietary blends that are unique to the state.
Despite this availability, many Americans remain unfamiliar with olive oil and do not use it as frequently as Europeans do. According to Bloomberg, six out of ten Americans never purchase olive oil. Although total olive oil consumption in the U.S. has tripled since 1990, per capita consumption is still only 0.8 liters, which is just a tenth of the annual usage by Italian consumers. These low consumption figures may be influenced by price, particularly given the broader range of oils available today at lower costs compared to previous years.
Moreover, the issue of olive oil fraud, which involves products being mixed with lower-quality oils or being misleadingly labeled, has further eroded consumer confidence. Italian producer Bellucci has responded to this uncertainty by developing an app that allows consumers to track the milling and bottling processes of its growers in Italy, enabling them to trace any bottle of the company’s extra virgin olive oil back to its origin.
However, domestically produced olive oil could gain a competitive advantage in the market. Industry trade groups and agricultural agencies can closely monitor olive oil production in the U.S., making it easier to guarantee authenticity when everything is sourced from American soil. Marketing campaigns emphasizing this authenticity could appeal to skeptical consumers. Strategies such as educational marketing, improved packaging, and in-store displays may help attract more consumer attention.
Olives are rich in vitamin E, antioxidants, and monosaturated fats—attributes that today’s health-conscious consumers seek. If producers can effectively promote these health benefits and reassure consumers of their products’ authenticity, the sector could gain significant momentum. Additionally, the timing for increasing 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 decreased olive oil production in the European Union—which accounts for 73% of the world’s olive oil—while imported prices are rising.
Incorporating elements such as calcium citrate mason into the marketing narrative could further enhance consumer interest. Highlighting the nutritional benefits of olive oil, including its calcium content, may resonate with health-conscious buyers looking for quality products. By leveraging these various aspects, the U.S. olive oil industry could potentially boost its market presence and consumer acceptance.