The Avocado Oil Market Is Estimated To Witness High Growth Owing To Increasing Health Consciousness

Food

The 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 Overview:

Avocado oil is extracted from the pulp of avocado fruit through different cold processing techniques without applying any heat. It is widely used in cooking applications due to its high smoking point. Avocado oil is a rich source of monounsaturated fatty acids and vitamins A, D, E and K which provides various health benefits such as reducing cholesterol levels, improving skin and hair health. It is used in food industry for sautéing, baking and as salad dressings.

Market Dynamics:

Avocado oil market is primarily driven by increasing health consciousness among consumers worldwide. Avocado oil has several health benefits due to presence of vitamins, minerals and plant compounds. It helps in maintaining heart health, reducing inflammatory problems and improving digestive health. According to a report by Hass Avocado Board, nutritional content of avocado oil has led to year-on-year rise in demand from food industry as well as retail buyers. Additionally, nutritional properties and versatility in food applications such as use in salads, dips and dressing are also propelling market growth. However, high production cost and seasonal availability of avocados are some of the factors hindering market growth.

SWOT Analysis

Strength: Avocado oil has a high smoke point making it suitable for high heat cooking. It contains both monounsaturated and polyunsaturated fatty acids which are good for heart health. Avocado oil is rich in vitamins and antioxidants that promote skin and hair health.

Weakness: Avocado oil production largely depends on weather conditions which can impact supply. The price of avocado oil is higher than other vegetable oils due to low avocado yields.

Opportunity: Rising health consciousness is increasing the demand for healthy oils with numerous nutritional benefits. The expanding food and beverage industry is opening new opportunities for use of avocado oil in various culinary applications.

Threats: Climate change poses a key threat by increasing the frequency and severity of droughts and heavy rainfall affecting avocado production. Strong competition from other healthy oils also threatens avocado oil market share.

Key Takeaways:

The global avocado oil market is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period, due to increasing health awareness about nutritional benefits of avocado oil.Avocado oil is rich in monounsaturated fatty acids that are considered heart healthy. It also contains antioxidants and vitamins E, K, and B that promote skin and hair health.

The North America region dominated the avocado oil market in 2023,accounting for around 45% of global demand.Increasing consumption of healthy oils in food products and cosmetics has been a major factor driving the North America avocado oil market. Mexico has also emerged as a key producer and exporter of avocado oil worldwide.

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 focusing on new product launches catering to rising demand from foodservice industry and retail sectors. They are also adopting sustainability initiatives to ensure stable supply of avocado through resilience in avocado cultivation.