Market Overview:
Avocado oil is extracted from the fruit of Persea americana plant through different cold pressing techniques without the use of solvents and high temperature. It contains essential vitamins, minerals, and monounsaturated fatty acids that provide numerous health benefits. The oil has a rich, nutty flavor and high smoke point making it suitable for sauteing, baking, and other culinary applications. It is a source of antioxidants such as vitamin E and carotenoids that protect cells from damage. Avocado oil also contains oleic acid that helps reduce inflammation and supports heart health.
Market Key Trends:
One of the major trends driving the avocado oil market growth is rising awareness about the health benefits associated with its consumption. Studies have demonstrated that avocado oil can help lower bad cholesterol, regulation of blood sugar levels, and weight management. It supports cardiovascular health due to the presence of monounsaturated fatty acids. The oil also contains anti-aging properties and supports skin and hair health. Moreover, clean label and Non-GMO avocado oils with no toxins or chemicals are gaining popularity among health-conscious consumers. The versatility and high smoke point of avocado oil make it suitable for diverse culinary applications including salads, sautéing, and baking, thus boosting its demand.
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
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the avocado oil market is moderate. Significant capital is required to set up facilities for avocado oil extraction and processing. Presence of established players also poses challenge for new entrants.
Bargaining power of buyers: The bargaining power of buyers in the avocado oil market is high. Buyers have numerous options to choose from in terms of avocado oil brands. Switching costs are also low for buyers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major suppliers of avocados include Mexico, Peru, Dominican Republic, and Chile. Suppliers can exert pressure on prices due to consolidated supply
Threat of new substitutes: The threat of substitutes is moderate. Avocado oil faces competition from other vegetable oils such as olive oil. However, its unique nutritional benefits provide some product differentiation.
Competitive rivalry: The competitive rivalry in the market is high owing to presence of numerous global and regional players. Players compete on the basis of product quality, taste, price, and effective marketing.
Key Takeaways
The global avocado oil market is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing awareness about health benefits of avocado oil. The avocado oil is rich in monounsaturated fatty acids and vitamins that make it healthy for cooking.
Regional analysis: North America dominates the global avocado oil market currently. The U.S. leads the regional market owing to rising health-conscious population. Mexico is another major market in North America and is the largest producer of avocados globally. Europe is expected to witness fastest growth during the forecast period supported by increasing use of avocado oil in cosmetic and personal care products in countries like Germany, UK, and France.
Key players: 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. Major players are focused on production capacity expansion and new product launch in order to strengthen their market position.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it