Us Olive Oil Market Report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

US Olive Oil Market Overview

• The US Olive Oil Market is valued at USD 3.2 billion, based on a five-year historical analysis. This growth is primarily driven by increasing consumer awareness of health benefits associated with olive oil, including its role in heart health and as a source of healthy fats. Additionally, the rise in Mediterranean diet popularity has significantly contributed to the demand for olive oil in various culinary applications.
• Key players in this market include California, which is the leading state for olive oil production due to its favorable climate and established agricultural practices. Other notable regions include Italy and Spain, which dominate the import market due to their long-standing traditions in olive cultivation and oil production, thus influencing consumer preferences and market dynamics.
• There was no new, broad federal regulation in 2023 that overhauled olive oil labeling or created new mandatory national quality grades; instead, quality and labeling continue to be governed by a mix of existing FDA food labeling rules, USDA voluntary U.S. Standards for Grades of Olive Oil and Olive-Pomace Oil, and state-level programs such as the California Department of Food and Agriculture’s Olive Oil Commission standards. Recent policy and industry initiatives have focused on more consistent enforcement against adulteration and misleading “extra virgin” claims and on voluntary certification and seal programs that provide clearer origin and quality information to consumers.

US Olive Oil Market Segmentation

By Type:The olive oil market is segmented into various types, including Extra Virgin Olive Oil, Virgin Olive Oil, Refined Olive Oil, Olive Pomace Oil, Pure/Classic Olive Oil Blends, Flavored and Infused Olive Oils, and Organic Olive Oil. Among these, Extra Virgin Olive Oil is the most popular due to its superior quality and health benefits, driving consumer preference towards premium products. The demand for Organic Olive Oil is also rising as consumers become more health-conscious and environmentally aware.

By Application:The applications of olive oil are diverse, including Food & Beverage (Retail and Foodservice), Personal Care and Cosmetics, Pharmaceuticals & Nutraceuticals, Food Processing & Industrial, and Others. The Food & Beverage sector dominates the market, driven by the increasing use of olive oil in cooking and food preparation, as well as its incorporation into health-focused diets. The Personal Care segment is also growing, as olive oil is recognized for its moisturizing properties.

US Olive Oil Market Competitive Landscape

The US Olive Oil Market is characterized by a dynamic mix of regional and international players. Leading participants such as California Olive Ranch Inc., Pompeian, Inc., Colavita USA, LLC, Bertolli (Deoleo S.A.), Filippo Berio (Salov Group), Corto Olive Company, Goya Foods, Inc., Star Fine Foods, La Tourangelle, Inc., Lucini Italia, O-Live & Co., Partanna, Spectrum Naturals (Hain Celestial), 365 by Whole Foods Market, and Private Label Brands (e.g., Kirkland Signature, Trader Joe’s) contribute to innovation, geographic expansion, and service delivery in this space.

US Olive Oil Market Industry Analysis

Growth Drivers

• Increasing Health Consciousness:The US olive oil market is significantly driven by rising health awareness among consumers. According to the USDA, olive oil consumption in the US reached approximately 350 million liters, with a projected increase to 375 million liters in future. This growth is attributed to the recognition of olive oil's health benefits, including its high monounsaturated fat content and antioxidant properties, which align with the increasing demand for healthier cooking oils.
• Rising Demand for Gourmet Products:The gourmet food segment is expanding rapidly, with the Specialty Food Association reporting a 10% increase in gourmet food sales, reaching USD 170 billion in future. Olive oil, particularly premium and artisanal varieties, is gaining traction among consumers seeking unique flavors and high-quality ingredients. This trend is expected to continue, with gourmet olive oil sales projected to grow as consumers increasingly prioritize quality over price in their culinary choices.
• Expansion of Organic Olive Oil Segment:The organic olive oil segment is experiencing robust growth, with sales increasing by 15% annually, according to the Organic Trade Association. In future, organic olive oil sales reached USD 120 million, driven by consumer preferences for organic products. This trend is expected to persist, as more consumers seek certified organic options, reflecting a broader shift towards sustainable and health-conscious food choices in the US market.

Market Challenges

• Price Volatility of Raw Materials:The olive oil market faces significant challenges due to the price volatility of raw materials. In future, the average price of olives fluctuated between USD 1,200 and USD 1,500 per ton, influenced by climatic conditions and global supply chain disruptions. This volatility can lead to unpredictable pricing for consumers and manufacturers, impacting profit margins and market stability, particularly for smaller producers who may struggle to absorb these costs.
• Competition from Alternative Oils:The US olive oil market is increasingly challenged by competition from alternative oils, such as avocado and coconut oil. In future, the combined market share of these oils reached 30%, with avocado oil sales alone surpassing USD 200 million. This growing preference for alternative oils, driven by their perceived health benefits and versatility, poses a significant challenge for olive oil producers, necessitating innovative marketing strategies to retain market share.

US Olive Oil Market Future Outlook

The US olive oil market is poised for continued growth, driven by evolving consumer preferences and increasing health consciousness. As the demand for high-quality, gourmet, and organic products rises, producers will need to adapt to these trends. Additionally, the expansion of e-commerce channels will facilitate greater accessibility for consumers. Collaborations with culinary influencers will further enhance brand visibility, driving consumer engagement and loyalty in a competitive landscape, ultimately shaping the future of the olive oil market in the US.

Market Opportunities

• Expansion into E-commerce Channels:The shift towards online shopping presents a significant opportunity for olive oil brands. E-commerce sales in the food sector are projected to reach USD 150 billion in future, with olive oil brands able to leverage this trend to reach a broader audience. By enhancing online presence and optimizing distribution channels, producers can tap into the growing demand for convenient shopping experiences.
• Development of Value-Added Products:There is a growing opportunity for the development of value-added olive oil products, such as infused oils and blends. The market for flavored oils is expected to grow by 20% annually, driven by consumer interest in diverse culinary experiences. By innovating and diversifying product offerings, brands can attract new customers and enhance their market position in the competitive landscape.