AVOCADO OIL MARKET ANALYSIS

Market Size and Trends

The global avocado oil market is estimated to be valued at USD 665.9 Mn in 2024 and is expected to reach USD 981.7 Mn by 2031, growing at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.

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The avocado oil market is expected to witness substantial growth over the forecast period. Factors such as the growing demand for plant-based and healthy oils as well as the high nutritional content of avocado oil are expected to drive the market growth. Avocado oil has gained considerable popularity in the food industry owing to its light taste and high smoke point. Growing awareness among consumers pertaining to the health benefits of avocado oil is further expected to propel the market growth. The oil contains vitamins, beneficial fatty acids, and antioxidants which makes it suitable for cooking as well as various cosmetic and personal care applications. Emerging application areas and product launches catering to new segments are anticipated to provide lucrative opportunities for avocado oil manufacturers over the coming years. However, price volatility of avocado may challenge the industry's growth to a certain extent.

 Various health benefits associated with its consumption

One of the key drivers for the growth of the global avocado oil market is the various health benefits associated with its consumption. Avocado oil is considered very heart-healthy as it contains monounsaturated fatty acids in the form of oleic acid which helps lower bad cholesterol and raise good cholesterol levels. It is also a rich source of vitamin E and K which are powerful antioxidants that protect the body from damage causing free radicals. The oil contains phytosterols that support cardiovascular health by reducing inflammation. Numerous studies have linked avocado oil consumption to various health advantages. Its intake has been shown to aid weight loss and weight management. The monounsaturated fatty acids take longer to digest and help curb hunger pangs for a more prolonged period. This prevents overeating and reduces calorie intake. The oil is also beneficial for skin and hair. Being highly moisturizing, it nourishes skin from within and helps improve its elasticity, texture and Complexion. When applied topically, it hydrates dry patches and slows down skin aging. For hair, regular massage with avocado oil combats frizz, flyaways, dandruff, and adds shine.

Market Concentration and Competitive Landscape

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Another key factor driving the avocado oil market is the rising adoption of healthy cooking oils globally as people are becoming increasingly health conscious. Saturated oils like butter and lard that were traditionally used for cooking are now being replaced with monounsaturated rich avocado oil. It has a high smoke point of 520 degrees Fahrenheit, which makes it suitable for recipes that require high heat cooking like stir frying and sautéing. Unlike other vegetable oils, avocado oil retains its natural nutrients even when heated to very high temperatures. As consumers are more aware of the role of diet in maintaining overall well-being, they carefully scrutinize ingredient labels and choose products that offer optimum nutritional value. Avocado oil perfectly fits their requirements of a healthy fat that is stable at high cooking temperatures and imparts a mild flavor to dishes. Moreover, its production does not involve harmful chemical extraction processes like other vegetable oils. Rise in international cuisines incorporating avocado oil is also propelling the market as people traveling globally have been exposed to usage of this healthy oil in different cultures.

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Avocado oil faces several challenges in the global market. Climate change poses a threat to consistent avocado production in key regions. Disease and pests can damage crops, limiting supply. The transportation and logistics of perishable avocados across vast distances increases costs. Additionally, price volatility disrupts forecasting and business planning for producers. Fluctuating exchange rates further impacts export prices. These supply chain issues pose ongoing challenges to the steady growth of the avocado oil industry worldwide.

Opportunities: Rising health consciousness

The global avocado oil market provides opportunities for expansion. Rising health consciousness is driving demand for nutritious cooking oils low in saturated fat. Avocado oil's versatility and flavor profile attract both professional chefs and home cooks. The growing wellness trends represent an opportunity to market the nutritional benefits of avocado oil. Further, developing economies with growing middle classes

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In terms of product type, extra virgin oil contributes 39.5% share of the market share owing to its numerous health benefits. Extra virgin avocado oil is unrefined and cold-pressed, which ensures it retains the maximum nutrients, antioxidants, and flavor of the avocado fruit. It contains heart-healthy monounsaturated and polyunsaturated fatty acids that can help reduce bad cholesterol levels. Extra virgin avocado oil also provides vitamins E, K, and B6 as well as minerals like potassium, magnesium, copper, iron, and fiber. The oil's anti-inflammatory properties make it beneficial for reducing joint pain and inflammation. Furthermore, the oil's rich composition of carotenoids and phenolic compounds give it powerful antioxidant effects that can help protect cells from damage. Compared to virgin and refined varieties, extra virgin avocado oil undergoes minimal processing and is not chemically treated or deodorized. As a result, it maintains the avocado's naturally nutty and creamy flavor profile. Consumers are increasingly gravitating towards extra virgin oils as they offer the highest nutritional value and best flavor. The processing required to produce virgin and refined oils leads to the loss of some heat-sensitive vitamins, antioxidants and polyphenols. Extra virgin avocado oil's superior nutritional quality, health halo, and stronger taste have made it the top choice product type in the avocado oil market.

Insights, By Application: Food Applications Drive the Beverage Demand

In terms of application, food & beverages contributes 38.8% share of the market due to avocado oil's versatile culinary uses. Unlike other vegetable oils which have strong flavors that can overpower dishes, avocado oil has a mild, subtly nutty taste that enhances rather than masks the flavors of foods. It has a high smoke point of 500°F, making it suitable for cooking methods like sautéing and stir frying without breaking down or leaving offensive odors. Avocado oil is widely used for making mayonnaise, salad dressings and dips as its rich texture lends creaminess. It is also popular as a substitute for butter or other oils in baked goods like cakes and muffins to add moisture and nutrients without changing the taste profile. The oil is excellent for marinades, rubs, and basting meats and poultry during grilling to prevent sticking and add tenderness. It is a common replacement for other oils in Mexican and Latin American cuisine due to its origins. Avocado oil's versatility and neutral flavor have propelled it to the top spot in the food and beverage category.

Insights, By Distribution Channel: Retail Distribution Drives Exposure

In terms of distribution channel, hypermarkets/supermarkets contribute 37.8% of the market share as they remain the dominant retail channel for avocado oil. Large supermarket chains offer extensive shelving space for an extensive selection of avocado oil products from various brands. Being one-stop shops, supermarkets allow customers to purchase avocado oil alongside their regular grocery items in a single trip. Their prime high-footfall locations and aggressive promotional activities ensure high product visibility and awareness among consumers. In hypermarkets and supermarkets, avocado oil is usually stocked alongside other cooking oils and international food products. This positioning and neighboring of similar items helps customers easily find and evaluate avocado oil versus competitive options. The large retail format also allows for attractive multipack discounts and bundle offers that enhance product affordability. Chain stores aim to be price competitive as well to attract higher customer volumes. As a result, hypermarkets and supermarkets have emerged as the key drivers for increased consumption of avocado oil through sustained purchase access and strong product placement.

Regional Insights

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North America has established itself as the dominant region in the global avocado oil market. The U.S. is the largest producer and consumer of avocado oil worldwide with 38.7% of the market share. Ideal weather conditions across states like California, Florida, and Hawaii enable the large-scale commercial cultivation of avocados. Furthermore, avocados have gained immense popularity as a super food with numerous health benefits in recent years. This has fueled the greater demand for avocado oil among health conscious consumers. Established food processing industries and strong supplier networks in North America allow for the efficient extraction and packaging of avocado oil. Leading brands like Baja Precious, Avoolio, and Chosen Foods have established a wide retail and online presence across the region. North American producers focus on innovation and product differentiation. As a result, the region offers a variety of avocado oil types including extra virgin, virgin, and refined varieties along with specialty infused flavors. This diversification has boosted sales volumes.

Europe has emerged as the fastest growing regional market for avocado oil. Countries such as Spain, Italy, and Greece have traditionally consumed olive oil as the main culinary oil. However, increasing awareness about the unique composition and health qualities of avocado oil are driving European consumers to substitute it in place of olive oil. Avocado production is also increasing in Spain and parts of Europe to meet this growing demand.

Market Report Scope

Key Developments

• In March 2024, Sea6 Energy, an India-based company, launched the world's first large-scale mechanized tropical seaweed farm in Lombok, Indonesia
• In August 2023, Avocado Oil Producer Chosen Foods Launches the “First-Ever” Pumpkin Spice Avocado Oil Caviar
• In May 2023, Loliware launched new seaweed resin to replace plastics at the International Materials Conference
• In August 2021, Vital Farms, situated in Austin, Texas, launched pasture-raised butter with avocado oil and sea salt. This creamy and flavorful tub of butter is made from 100% pure avocado oil and sea salt.
• In October 2021, a U.S.-based brand, Jackson’s Honest, expanded its snack portfolio of potato chips with new packaging. In addition to company’s original Sea Salt with Coconut Oil chips, the line-up contains three new flavors made with avocado oil: Spicy Tomatillo, Sea Salt, and Carolina BBQ.

*Definition: The global avocado oil market refers to the worldwide market for avocado oil. Avocado oil is made by pressing or extracting oil from the pulp of avocados. It is considered a super food oil due to its high monounsaturated fat content and variety of vitamins and minerals. The global avocado oil market has seen strong growth in recent years as health and wellness trends have increased the consumer demand for nutritious cooking oils.

Market Segmentation

•  Product Type Insights (Revenue, USD Mn & MT, 2019 - 2031)
  • Virgin Oil
  • Extra Virgin Oil
  • Refined Oil
  • Others
•  Application Insights (Revenue, USD Mn & MT, 2019 - 2031)
  • Personal Care Products
  • Food & Beverages
  • Medicinal Products
  • Others
•  Distribution Channel Insights (Revenue, USD Mn & MT, 2019 - 2031)
  • Hypermarkets/Supermarkets
  • Specialty Stores
  • Convenience Stores
  • Others
• Regional Insights (Revenue, USD Mn & MT, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Sesajal S.A. de C.V.
  • Olivado
  • Grupo Industrial Batellero S.A. de C.V
  • YASIN
  • Tron Hermanos SA de CV
  • The Village Press
  • Bella Vado
  • Chosen Foods LLC
  • Storino's Quality Products.
  • Aromex Industry
  • AOS Products Pvt. Ltd.
  • Gustav Heess
  • Spectrum Organics Products, LLC
  • La Tourangelle, Inc.
  • Proteco Gold Pty Ltd.
  • Grove Avocado Oil
  • Cibaria International
  • Plenty Foods
  • Avocado Oil New Zealand Ltd
  • AG Organica