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The avocado oil market is estimated to grow at a CAGR of 12.95% between 2022 and 2027. The size of the market is forecast to increase by USD 516.45 million. The growth of the market depends on several factors, including the health benefits of avocado oil, the higher smoke point compared to other oils, and the versatile applications of avocado oil.
This report extensively covers market segmentation by product (refined avocado oil and crude avocado oil), distribution channel (offline and online), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The health benefits of avocado oil are notably driving the avocado oil market growth, although factors such as stringent regulations may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
Key Avocado Oil Market Driver
The health benefits of avocado oil are notably driving the avocado oil market growth.Avocado is a highly nutritious fruit that contains a variety of proteins, iron, magnesium, vitamins, and minerals, including omega-3 fats, oleic acid, dietary fibers, folic acid, potassium, and vitamins A, B1, B2, B3, B5, B6, E, K, and C. The fruit offers numerous benefits such as improving heart health, eyesight, digestion, and detoxifying the body. Its oil is high in oleic acid, which has a significant amount of monounsaturated fats similar to those found in olive oil. Oleic acid helps to lower the risk of cancer, speeds up cell regeneration, wound healing, eliminates microbial infections, and reduces inflammation. The high amount of oleic acid in avocado oil enables it to remain fresh for a long time, making it ideal for high-temperature cooking without losing its properties and benefits. Avocado oil is also a good source of vitamins, including vitamin E, K, C, B5, B6, and more, which improves memory, eyesight, skin, boosts the immune system, and increases the overall efficiency of the digestive system. The monounsaturated fats, minerals, and vitamins present in avocado oil aid in improving the overall functioning and efficiency of the digestive system and help to reduce weight while providing the body with more energy. The oil is also beneficial for the heart as it reduces inflammation in the arteries, prevents damage to arterial walls, and reduces the risk of heart-related diseases. It improves good cholesterol and lowers bad cholesterol, improves hair, gums, and skin by reducing skin damage and wrinkles, moisturizing the skin, and nourishing the hair. In addition, avocado oil helps to reduce joint pains, improves eye conditions, neutralizes free radicals, enhances wound healing, and more. Regular consumption and usage of avocado oil can significantly improve health conditions.
Key Avocado Oil Market Trend
Natural oil blends and flavoured avocado oil are a trend in the market. Edible oils are usually mixed with other oils to obtain the benefits of all the mixed oils. Oils that are blended are selected so that the characteristics of each oil can complement the other and enhance the value of the blended oil. Avocado oil is usually blended with coconut oil, safflower oil, olive oil, almond oil, shea butter, grapeseed seed oil, and others. While blending, various properties of the oil, like the color, viscosity, smoke point, fatty acid composition, aroma, and a few other parameters, are studied and taken into consideration to find the optimum blend proportion.
Natural blends of oils have wide applications, including aromatherapy, food and nutrition, skincare, hair care, and more. Other avocado oil blends, such as avocado and olive oil blends, can be used for cooking and for massaging dry, sensitive, and mature skin. Avocado oil has a mild nutty taste and flavor. It is smooth and light in texture. Its flavor can be changed by adding whole or ground herbs and spices. Thus, varieties such as lime, garlic, lemon, jalapeno, honey almond, and many other flavored avocado oils are available in the market. These factors will influence the market growth during the forecast period.
Key Avocado Oil Market Challenge
Stringent regulations may impede the market growth. Vendors in the market are required to comply with the stringent regulations and guidelines issued by various government bodies. Different countries have various government regulatory agencies that lay down the standards that need to be followed by seed manufacturers, including avocado producers. For instance, in the US, the United States Department of Agriculture (USDA) frames the regulations for avocado products, including avocado oil.
In South Africa, the Ministry of Agriculture, Forestry, and Fisheries has framed grading, packing, and marking regulations for avocados that are intended for sale in South Africa. The avocados imported into the European Union must comply with the United Nations Economic Commission for Europe (UNECE) standards for avocados. Hence, different regulations in different countries can hamper the growth of the global avocado oil market during the forecast period.
Key Avocado Oil Market Customer Landscape
Our analysis of the lifecycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, Canada, China, Japan, the UK, and Germany. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Avocado Oil Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market
agindustries.net - The company offers avocado oil, such as cold-pressed avocado oil.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the refined avocado oil segment will be significant during the forecast period. Refined avocado oils are available in the market in three primary forms, namely extra virgin avocado oil, virgin avocado oil, and others (butter, blends, and sprays). Extra virgin avocado oil has a very high smoke point. It is manufactured using the cold-pressed extraction process. Since the oil is produced at a low temperature, it has high nutritional content, aroma, and strong flavour. Extra virgin avocado oil can be used for emulsifying, spreading, dipping, and drizzling. Along with this, the oil can also be used for frying, sauteing, grilling, searing, baking, and more. Preservatives, flavours, and colouring agents are not added in extra virgin oil, and thus, it has a natural taste.
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The refined avocado oil segment showed a gradual increase in market share with USD 303.39 million in 2017 and continued to grow by 2021. Other forms of avocado oil include avocado butter, avocado oil blends, and spray avocado oil products. Avocado butter is produced through a cold-pressed technique. Avocado oil is also used along with other oils. It is blended with other oils to extract the benefit of both oils. Many manufacturers like Chosen Foods LLC and others have introduced avocado blend oil varieties. Similarly, the demand for flavoured avocado oil is also rising, and manufacturers have introduced avocado oil in different flavours like lime, garlic, and others. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of avocado oil, which is driven by an increase in the global demand for avocado oil. The natural avocado oil segment comprises unrefined and unprocessed oil that is dark green in colour with a brownish tint due to its high chlorophyll content. Crude avocado oil contains high amounts of oleic acid, palmitic acid, linoleic acid, beta-sitosterol, and other nutrients, and requires further processing like bleaching and deodorizing to make it suitable for culinary use. While crude oil is mostly used for non-edible purposes such as skincare products and cosmetics, it can be processed further for edible preparations. Moreover, the cost of crude oil is comparatively lower than that of processed oil, and several vendors in the global avocado oil market offer it in bulk to local and international end-users, especially to body care and skin care cosmetic manufacturers. For example, South Africa-based company Westfalia Fruit Pty Ltd. supplies crude avocado oil to the cosmetic and food and beverage industries in bulk, which is used as an essential ingredient in products like bathing soaps and skin moisturizers.
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North America is projected to contribute 43% of the market's growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The US, Canada, and Mexico are the leading consumers of avocado oil in the region. Growing awareness about a healthy lifestyle is one of the factors that is driving the demand for avocado oil in the region. The demand is mainly due to its health benefits. The increased prevalence of health conditions, such as chronic diseases and heart diseases, caused by the increased consumption of high-fat oils and butter has led to an increased demand for healthy oils. The increasing awareness among consumers about the various health benefits of avocado oil, such as the presence of essential vitamins and minerals, fiber, and ant-oxidants, is also increasing the demand for avocado oil in North America. The consumers in the region prefer purchasing healthy oils over other oils. Hence, the demand for oils, such as avocado oil, olive oil, canola oil, rice bran oil, and other similar oils, is increasing in the region.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The rapid spread of COVID-19 challenged the growth of the avocado oil market in North America. However, large-scale vaccination drives started in the US in December 2020. Almost 40% of the population was vaccinated by May 2021, which resulted in the lifting of lockdowns and other restrictions. Hence, the supply chain for avocado oil was restored. This will support the growth of the avocado oil market in North America during the forecast period.
Our report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, distribution channel, and region.
Avocado Oil Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.95% |
Market growth 2023-2027 |
USD 516.45 million |
Market structure |
Fragmented |
YoY growth (%) |
12.65 |
Regional analysis |
North America, APAC, Europe, South America, and the Middle East and Africa |
Performing market contribution |
North America at 43% |
Key consumer countries |
US, Canada, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
A.G. Industries, AMD Oil Sales LLC, AOS Products Pvt. Ltd., Avi Naturals, Avocado Global Pte Ltd., Avocado Oil New Zealand Ltd., Bella Vado, BIO PLANETE - Huilerie Moog GmbH, Bo International, Chosen Foods LLC, Crofts Ltd., Kevala International LLC, La Tourangelle Inc., Olivado Ltd., Plenty Foods, Storinos Quality Products, SVA Naturals, The Hain Celestial Group Inc., The Village Press, and Westfalia Fruit Pty Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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