by Market Overview:
Avocado oil is extracted from the fleshy pulp of avocado fruit. It is widely used for cooking purposes due to its high smoke point. The oil offers various health benefits such as improving cardiovascular health, reducing inflammation, and boosting skin and hair health. It also acts as a moisturizer when applied topically. These properties have increased the popularity of avocado oil in cosmetic products and culinary applications.
Market Dynamics:
The rising health consciousness among individuals is projected to fuel the avocado oil market growth over the forecast period. Avocado oil contains vitamin E, K, B6 and healthy monounsaturated fats which are beneficial in maintaining overall well-being. Its nutritional value makes it an ideal option for health-conscious consumers. Secondly, the wide range of uses of avocado oil has propelled its demand in recent years. Apart from cooking, it is increasingly used in numerous personal care products owing to its moisturizing and anti-aging properties.
The multi-use applications allow consumers to utilize a single oil for various purposes, which is anticipated to boost product penetration. Furthermore, the growing vegan population has created opportunities for plant-based oils including avocado oil. Its position as a popular substitute of animal-based oils like butter is likely to augment the market growth over the forecast period.
Segment Analysis
The avocado oil market is dominated by the extra-virgin segment which holds around 60% of the total market share. This is because extra virgin avocado oil is considered to have a high smoke point of about 520°F (271°C), retaining most of the nutrients, vitamins, and antioxidants present in fresh avocados. It has mild flavor and aroma which makes it suitable for variety of culinary applications like sautéing, baking, and dressing salads.
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.
PEST Analysis
Political: There are no significant trade barriers or regulations affecting the import and export of avocado oil across countries.
Economic: Rising disposable incomes and growing health consciousness among consumers is fueling the demand for premium cooking oils like avocado oil globally.
Social: Changing dietary patterns and increasing preference for plant-based oils are driving the popularity of avocado oil as a healthy alternative to other cooking oils.
Technological: The development of innovative extraction technologies is helping players improve yield and efficiency of avocado oil production without using any chemical solvents.
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 the health benefits of avocado oil as well as rising usages in cosmetic and personal care products. The Asia Pacific region is expected to be the fastest-growing regional market for avocado oil due to rapid urbanization, growing millennial population and rising health consciousness in countries like China and India.
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. Sesajal is the global market leader with the largest cultivation and production of avocado oil in Mexico. Olivado is another leading brand focused on organic and greenhouse-cultivated avocado oil to maintain Premium quality.
Regional analysis
The Asia Pacific region is projected to witness highest growth in the avocado oil market owing to rising health awareness, improving lifestyle and surging demand for premium cooking oils in densely populated countries like India and China. Avocado oil market in India is expected to double in size over next five years supported rising domestic productions in states like Tamil Nadu and import of Mexican varieties of avocados.
Key players operating in the avocado oil market are focusing on capacity expansions to cater to growing demand. For instance, in 2022, Sesajal doubled its avocado oil production capacity to 55,000 metric tons annually by developing additional 20,000 hectares of avocado orchards in Mexico. Similarly, Olivado opened new production sites in Lampe, Missouri and Paso Robles, California to strengthen its presence in North America.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
