Avocado oil is extracted from mature avocado fruit. It is high in monounsaturated fatty acids and has a mild flavor. Avocado oil has several advantages over other vegetable oils as it has a high smoke point, making it suitable for cooking purposes. It is also rich in vitamins, minerals and antioxidants which provide various health benefits. Due to these properties, demand for avocado oil is increasing from food industry for use in cooking and various food applications.
Market key trends:
One of the key drivers of avocado oil market is the growing demand from food industry. Avocado oil is increasingly being used in various food products and applications owing to its nutritional properties and mild taste. It is used in bakery products, sauces, dressings and many packaged food products. As consumers are becoming more health conscious, they prefer food products containing healthy oils like avocado oil. This trend is expected to continue over the forecast period, thereby driving the growth of avocado oil market. Its growing demand from food industry segment is expected to provide opportunities for avocado oil market players over the coming years.
The global Avocado Oil Market Growth is estimated to be valued at US$ 287.2 Million in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights
Threat of new entrants: Low as there are high costs involved in establishing processing facilities and establishing distribution networks. Bargaining power of buyers: High as avocado oil has substitutes like olive oil. Bargaining power of suppliers: Medium as Mexico and other Central American countries dominate avocado supply. Threat of new substitutes: Medium as olive oil is a major substitute. Competitive rivalry: High due to presence of several players.
Strengths: Health benefits of avocado oil such as containing antioxidants. Weaknesses: Seasonal nature of avocado harvest leads to fluctuating supply. Opportunity: Increasing adoption in cosmetic and personal care products is an opportunity. Threats: Threat from climate change impacting avocado cultivation.
The global avocado oil market is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing health consciousness. Regionally, North America dominates the avocado oil market currently due to high avocado consumption particularly in U.S. and Canada. Mexico and Central American countries are the fastest growing regional markets. Key players operating in the avocado oil market are 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, and Storino’s Quality Products.
The global avocado oil market size for 2022 stood at US$ 287.2 million. The growing demand for plant-based oils with various health benefits is driving the avocado oil market growth. Further, the increasing consumption of avocados as a superfood is augmenting the market expansion.