Domestic production of olive oil, based mostly in California, is six times larger than it was 20 years ago but it amounts to less than 2 percent of the U.S.’s steadily growing consumption, forecast to be more than 400,000 metric tons this year, say USDA analysts. Drought in Europe, the major producer, drove import prices to record highs but they are projected to decline in the year ahead as production recovers.
The United States is the world’s largest importer of olive oil and is the second-largest consumer, behind Europe. Olive oil, which sells at a premium over other oils, “is valued for its unique flavor and taste, and it is not easily substitutable,” said a special article in USDA’s monthly Oil Crops Outlook. “The popularity of olive oil as a culinary ingredient and its association with a ‘Mediterranean diet’ has contributed to growing consumption.” It also has more monosaturated fats and retains more antioxidants and vitamins after processing than other vegetables — selling points for people seeking healthy diets.
Even so, olive oil accounts for 5 percent of vegetable oils used for food in the United States.
Olive trees are well-suited to the hot and dry summers of the Central Valley of California, which has 40,000 acres of trees, with 70 percent of the olives crushed for oil. Production in 2023/24 was 12,000 metric tons, six times bigger than 20 years earlier.