Avocado oil is extracted from the fleshy fruit of Persea americana plant. It has a mild flavor and high smoke point, which makes it suitable for cooking applications. Avocado oil is being increasingly used in foodservice industry for salad dressings, dips, and spreads due to rising demand for plant-based oils with nutritional benefits. It contains essential fatty acids and vitamins that provide various health benefits such as reduced risk of heart disease. The global avocado oil market offers unique characteristics over other edible oils such as extra virgin olive oil. It remains stable at high temperatures without breaking down and compromising the nutritional value. Moreover, avocado oil does not leave behind a strong flavor on foods.
The global avocado oil Market is estimated to be valued at US$ 1660.15 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trend gaining traction in the global avocado oil market is the increasing demand from millennial consumers. Younger consumers are more health conscious and prefer plant-based oils that provide nutritional benefits. Avocado oil meets their demand due to presence of monounsaturated fats, vitamins, and antioxidants. Moreover, the clean label and non-GMO status of avocado oil appeals to millennials. Manufacturers are introducing innovative product variants catering to changing preferences of young consumers. For instance, avocado oil blended with other plant oils is being marketed for specific health benefits. Rapid urbanization and rise in disposable income levels in developing regions also present new growth opportunities over the forecast period. However, price volatility of avocado may restrain the market to a certain extent.
Threat of new entrants: The threat of new entrants is moderate as avocado oil market is fragmented in nature with presence of many regional and local players. However, compliance to food regulations and large capital investments act as a barrier to entry.
Bargaining power of buyers: Bargaining power of buyers is high as the avocado oil market comprises of both retail and industrial buyers. Buyers can negotiate on price and quality standards due to fragmented supply chain.
Bargaining power of suppliers: Bargaining power of suppliers is moderate as there are many small and large avocado producers and processing companies. Suppliers also have switching capability to other edible oil buyers.
Threat of new substitutes: Threat of substitutes is low as avocado oil has distinct sensory properties compared to other vegetable oils but high prices can lead to substitution.
Competitive rivalry: Competition in the market is high due to presence of many regional players. Players focus on differentiations through branding, quality and value-added product offerings.
The Global Avocado Oil Market Share is expected to witness high growth. The global avocado oil Market is estimated to be valued at US$ 1660.15 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030.
Regional analysis: North America dominates the global avocado oil market followed by Europe. Mexico is the largest producer and supplier of avocado oil globally contributing over 80% of the global production.
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. Key players focus on new product launches, geographic and capacity expansions to consolidate their market presence. For instance, in 2022, Sesajal launched its new product line of avocado butters to expand in plant-based alternatives category.