Market Trends of North America Olive Industry
Dietary Revolution Leading to Upsurge in Demand for Olive Oil
A dietary revolution based on the nutritional benefits of olive oil has taken consumers in its stride in recent years. The upsurge in demand may be attributed to olives' health benefits, i,e., the presence of monounsaturated fat and antioxidants in olive oil, which helps prevent cardiovascular diseases, hyperlipidemia, and hypertension. Increasing health consciousness among consumers and the trend of healthy eating has become olive oil a preferred cooking medium, replacing traditional oils such as soybean and sunflower oil. The popularity of Mediterranean cuisine, which extensively uses olive oil, has also contributed to the increasing demand for olive oil globally. Moreover, the increasing demand for organic and natural food products has influenced the growth of the olive market, as consumers are willing to pay a premium for such products. As the demand for olive oil is positively correlated with the demand for olives, the rise in the global demand for olive oil has spurred the need for higher production of olives.
The olive oil consumption in the United States was 364 thousand metric tons in 2018 which increased considerably to 406 thousand metric tons in 2021, owing to a shift in the consumption of olive oil from the pomace variant to pure, extra light, and virgin categories. Thus, the rising trend of olive oil consumption is therefore anticipated to act as a catalyst in the growth of olive production, hence driving the global olive market.
United States Accounts for a Major Share in the Production of Olives
California is where the majority of US olives are produced. It shares a similar climate with many of the Mediterranean countries known for their olive oil production. California produces more than 95% of the olives grown in the United States. In 2021, there were 14,569 bearing hectares, yielding 91.6 thousand metric tons of olives in the country. Favorable climatic conditions in the United States have helped it become one of the major producers of olives.
The demand for organic olives and olive oil is increasing in the United States, and many California growers are transitioning to organic farming practices to meet this demand. Furthermore, the United States is a net importer of olive oil, with the majority of imports coming from Mediterranean countries such as Spain, Italy, and Greece. Some of the other major producers of olives after the United States are Mexico and Canada. Mexico is being studied for the feasibility of expansion of olive oil processing facilities. Hence, to cater to the rising demand for olive oil and table olives in the region, the production of olives in the country is high.
