Avocado oil is extracted from the fleshy fruit of Persea Americana plant through various extraction methods such as cold pressing, hexane extraction, and others. It is used as a cooking oil and for various cosmetic and pharmaceutical applications owing to the presence of monounsaturated fatty acids such as oleic acid. Avocado oils provide similar nutritional properties as olive oil but with a higher smoke point, making it suitable for various culinary applications such as sautéing and frying. The growing awareness regarding the health benefits of avocado oil among consumers is driving its use in the food industry.
The global avocado oil market is estimated to be valued at US$ 1,660.15 million in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Health Awareness (heading driver): Rising health awareness among consumers regarding the various health benefits of avocado oil is a key factor driving the market growth. Avocado oil is rich in monounsaturated fatty acids and contains no cholesterol which makes it suitable for cardiovascular health. It also contains vitamin E and K which help maintain skin health. Moreover, due to its neutral taste and high smoke point, avocado oil is increasingly being used in salads, baked goods and cooking applications.
Culinary Applications (heading driver): Avocado oil Market is witnessing increasing demand from food industry owing to its neutral taste and high smoke point making it suitable for various culinary applications like sautéing and shallow frying. The usage of avocado oil allows for high cooking temperature without burning or smoking the oil. Moreover, avocado oil adds nutrition to the final food products without altering the original taste. This is supporting the incorporation of avocado oil into various food products.
Segment Analysis
The global avocado oil market is dominated by extra virgin oil segment. Extra virgin avocado oil accounts for nearly 70% of the total market share owing to higher nutrient profile and health benefits compared to other avocado oil variants such as virgin oil, refined oil etc. Extra virgin oil undergoes minimal processing to extract oil from avocado fruits which helps retain nutrients such as vitamins, minerals, antioxidants and monounsaturated fatty acids making it a preferred choice among health conscious consumers.
PEST Analysis
Political: Avocado cultivation and production is influenced by government policies in major producing countries such as Mexico, Peru, Dominican Republic, Colombia. Trade policies and import restrictions affects global supply and prices.
Economic: Rising disposable incomes and growing health consciousness is fueling demand for premium products such as avocado oil across regions. The cost of avocado fruits is also an important factor influencing production costs.
Social: Changing consumer preferences towards plant-based and vegan foods provide growth opportunities. Products with perceived health benefits are gaining popularity.
Technological: Advancements in extraction techniques helps improve oil yields and quality. Use of automated sorting and grading equipment enhances production efficiency. Cold pressing technology aids in retaining nutritional value of avocado oil.
Key Takeaways
The Global Avocado Oil Market Growth is expected to witness robust over the forecast period owing to rising health awareness. The global avocado oil market is estimated to be valued at US$ 1,660.15 million in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023-2030.
Regional analysis: North America remains the dominant regional market for avocado oil accounting for over 35% value share owing to robust demand from dietary supplements and food processing industries in countries like United States and Canada. Mexico is the largest producer as well as consumer of avocado oil in the region supported by conducive agro-climatic conditions.
Key players: Key players operating in the avocado oil market include Cargill Incorporated, Archer Daniels Midland Company (ADM), Bunge Limited, Ingredion Incorporated, Tate & Lyle PLC. Cargill is the global leader with strong footprint across production and distribution networks. ADM and Bunge are among other major players focusing on expanding through backward integration.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it