Avocado Oil Market

Avocado Oil Market Size, Growth, Forecast (2023-2028)

The Global Avocado Oil Market size was US$ 553.27 million in 2022 and is anticipated to succeed in the valuation of US$ 802.29 million in 2028 and is predicted to register a CAGR of 5.82% during 2023-2028.

Avocado Oil Market Scenario:

Avocado oil is a natural oil derived from avocado pulp. About 70% of avocado oil is heart-healthy oleic acid, a monounsaturated fatty acid of omega-9. Avocado is dietary fibre and potassium, rich in texture and has great flavour. Due to its health benefits, the health-conscious people represent the major consumer base of avocado oil, especially those who are suffering from obesity and heart problems. In addition to the food and beverage industry, avocado oil is also widely used in pharmaceuticals and cosmetics. It has moisturizing, antioxidant, softening and toning effect that keeps the skin radiant and reduces blemishes, dry skin, wrinkles and acne.

The avocado oil industry is currently showing healthy growth rates. The avocado oil market has been driven primarily by growing awareness of the nutritional and health benefits of avocado oil. Apart from that, the demand for healthy oils such as avocado oil will be driven by the prevalence of various lifestyle disorders such as diabetes, obesity and cardiovascular disease due to high fat butter and increased oil consumption. Is also expected to increase. In addition, increasing demand for avocado oil from the healthcare industry is expected to have a positive impact on market growth.

Recent Developments Avocado Oil Industry:

• Turning waste avocado product into biogas - Olivado strives to leave communities and the environment in better condition than when we began. We are already carbon neutral and have pledged to become carbon positive by 2022.
• Butterfly Equity has acquired a majority stake in Chosen Foods LLC, a manufacturer of kitchen staples made with avocado or avocado oil. The transaction's financial terms were not disclosed.

REPORT COVERAGE:

Avocado Oil Market Drivers:

The growing tendency of consumers towards a healthy diet as a pursuit of health and well-being has significantly increased the inclusion of organic foods in their daily diet. The easy access to an infinite amount of information over the Internet will increase consumer awareness of the need for healthier foods and increase the demand for organic products.

Organic avocado oil is one of the best oils with low levels of saturated fats and high levels of good quality fats and offers many benefits to people. Therefore, the uptake of bio-oil into the processed food industry is increasing. In addition, most consumers are willing to pay a little more for the highest quality products, and processed food manufacturers will use such ingredients. Companies operating in the market continue to improve their products with certified organic oils, which are expected to drive the growth of the avocado oil market.

Avocado Oil Market Restraints:

The availability and low prices of avocado fruit oil alternatives such as sunflower oil and olive oil are expected to curb market growth. In addition, the increasing presence of counterfeit goods on supermarket shelves is expected to have a negative impact on the market. For example, according to data released by researchers at the University of California, Davis, most of the products sold in the United States are of poor quality, mislabelled, or contaminated with other oils.

Avocado Oil Market Segmentation Analysis:

By Type:

• Extra Virgin Oil
• Virgin Oil
• Pure/Refined Oil
• Blend

By Type, the pure/refined oil segment held a sizable market share in 2021. Because of its high vitamin E content, affordability (it is less expensive than extra virgin and virgin oil), and emollient properties, the cosmetics and personal care industry particularly values pure/refined oil. Furthermore, the current trend of applying natural oils directly to the skin is likely to boost extra virgin oil sales. Because of the assurance of quality, the demand for extra virgin oil is increasing significantly in the food sector. The extensive information available about the nutritional benefits of extra virgin avocado fruit oil is expected to drive segment growth.

By Application:

• Food and Beverages
• Pharmaceuticals and Medicinal Formulations
• Personal Care and Cosmetics
• Others

By Applications, the food and beverage application of the product is anticipated to grow at the fastest CAGR in the coming years. Increasing consumer trends for specialty products and increasing attention from key players to the incorporation of such ingredients into processed foods are expected to support the steady growth of this segment. 

The cosmetics and personal care products segment are expected to lead the industry in terms of revenue. The product is green and has a low odour, but it is very good compared to lanolin because it has good penetration into the skin, high vitamin E content and excellent durability. When used in skin lotions and creams, it also produces finer emulsions. Therefore, cosmetic companies tend to use this ingredient to improve the quality of their products.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Avocado Oil Market Regional Analysis:

Avocado oil is well known, is being consumed more and more in North America, and is becoming more popular in other parts of the world. The North American market will reach 272.21 million in 2022 and is expected to dominate the global market during the forecast period. The regional advantage is due to the growing consumer interest in the product and its use due to the nutritional and technical properties of the product.

Asia Pacific is expected to grow at the highest CAGR for the foreseeable future, primarily due to the growing popularity of its products in China, Japan and other countries. China has begun large-scale avocado cultivation in Guangdong, Yunnan, and Fujian provinces in recent years. According to the Chinese government, China will increase its avocado fruit oil production capacity over the next few years due to the availability of raw materials. In addition, increasing demand for products from other Asian countries such as Japan and Malaysia and wide availability of products through online and offline sales channels are expected to drive regional markets.

Europe and South America are expected to grow at a considerable pace due to growing demand for products from the food, cosmetics and personal care industries. Technological advances, product innovations, and increased customer awareness of product benefits are expected to have a positive impact on regional market growth. Meanwhile, market growth is expected to slow in the Middle East and Africa. In comparison, limited product awareness and marketing is expected to limit regional market growth to some extent, despite the region's strong potential consumer base.

Key Players in the Market:

Major Key Players in the Global Avocado Oil Market are

• Spectrum Organics Products, LLC (Oregon, U.S.)
• Bella Vado Inc. (California, U.S.)
• The Village Press (New York, New York)
• La Tour Angelle, Inc. (California, U.S.)
• Proteco Gold Pty Ltd. (Queensland, Australia)
• Sesajal S.A de C.V. (JALISCO, Mexico)
• Grupo Industrial Batellero (Lerma de Villada, Mexico)
• Grove Avocado Oil (Bay of Plenty Region, New Zealand)
• Cibaria International (California, U.S.)
• Olivado USA (Florida, U.S.)