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The avocado market size is forecast to increase by USD 6.89 billion, at a CAGR of 7.41% between 2023 and 2028. The growing enthusiasm for plant-based diets serves as a major catalyst propelling market expansion. As consumers increasingly embrace plant-centric eating habits motivated by health advantages and environmental consciousness, avocado varieties emerge as a perfect fit within this trend. Renowned for their nutritional density and adaptability, avocados fulfill the demand for nutrient-rich alternatives. Laden with healthy fats, fiber, and vital vitamins, they offer a plethora of health benefits. Their creamy texture and mild flavor make them suitable for diverse culinary uses, further enhancing their appeal. This surge in interest underscores a broader shift towards sustainable and health-conscious food choices, reshaping consumer preferences and driving innovation within the market research and growth.
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The surge in interest toward plant-based diets acts as a significant catalyst, driving market momentum. Consumers increasingly adopt plant-based eating habits, spurred by concerns over health and the environment. Avocado varieties, renowned for their nutritional richness and adaptable, are strategically positioned within this trend. They offer a bounty of health benefits, including healthy fats, fiber, and essential vitamins, meeting the growing demand for nutrient-dense alternatives. With their creamy texture and mild flavor, avocados cater to diverse culinary preferences. Market growth is further propelled by efforts to strengthen distribution networks, enhancing access to fresh fruits, including raw avocado, amidst concerns over the loss of plants, disruptions in imports, and quarantine measures.
Health benefits of avocados is notably driving market growth. The market is anticipated to expand during the forecast period, driven in part by increasing consumer awareness of the fruit's health benefits. Avocados are a rich source of essential vitamins and minerals, including vitamins C, E, K, and B-6, as well as calcium, riboflavin, niacin, folate, pantothenic acid, magnesium, potassium, lutein, and omega-3 fatty acids. Tetra pak packaging and the snacking trend have made avocados more accessible, particularly in urban areas. Modern retail and cold chain infrastructure have facilitated the consumption of avocados in their fresh, raw form.
Further, avocados are a protein source and aid in digestion, helping alleviate constipation and contributing to gastrointestinal tract health. Processed avocados, such as guacamole, are popular in vegetarian salads and other dishes. Changing lifestyles and urbanization have led to the exploration of new distribution channels for avocados. Thus, such factors are driving the growth of the market during the forecast period.
Adoption of new technologies that extend shelf-life of avocados is the key trend in the market. The market is experiencing growth due to technological advancements by vendors. Tetra Pak's smart packaging, for instance, uses RFID tags to monitor avocado ripeness in real-time. This technology, along with coatings like Naturcover, helps maintain avocado freshness and reduce losses. The avocado market is driven by the snacking trend, urbanization, and modern retail. Avocados are a rich source of protein and calcium, making them a popular choice for health-conscious consumers.
Moreover, the fresh form of raw fruit is beneficial for digestion and can help alleviate constipation. Processed avocados, such as guacamole, are increasingly popular in vegetarian salads and other dishes. Changing lifestyles and the cold chain distribution system are expanding consumption of avocados, which have been linked to improved gastrointestinal health and a reduced risk of colon cancer. Thus, such trends will shape the growth of the market during the forecast period.
Low popularity of avocado oil is the major challenge that affects the growth of the market. The avocado market faces a significant challenge due to the relatively low awareness and demand for avocado oil compared to other oils like olive, coconut, soybean, and canola. Avocados, known for their high protein and calcium content, have gained popularity as a fresh fruit for snacking, particularly in response to urbanization and modern retail trends. However, the consumption of avocados in processed forms, such as oil, lags behind. This disparity can be attributed to various factors, including the cold chain infrastructure required for avocado oil production and distribution, higher price point, and the prevalence of more widely available and affordable alternatives.
However, the changing lifestyles and increasing preference for vegetarian salads and healthier food options present opportunities for expanding avocado oil's market reach through innovative distribution channels. Tetra Pak packaging solutions and improved cold chain infrastructure could potentially address some of these challenges by ensuring the freshness and preservation of avocado oil. Additionally, focusing on the health benefits, such as aiding digestion, alleviating constipation, and potential protection against colon cancer, could help increase consumer awareness and demand for avocado oil. Hence, the above factors will impede the growth of the market during the forecast period
The conventional segment will account for a major share of the market's growth during the forecast period.? Most vendors in the global market sell their products through supermarkets, hypermarkets, and grocery stores. Consumers are more comfortable with physical outlets than online shops because it is possible to see and evaluate products before purchasing them. The market caters to consumers seeking healthy lifestyle choices, with avocados being a popular healthy food product due to their nutritional values, including mono-saturated fat, potassium, fiber, folate, and essential vitamins. The middle-class population and import demand in advanced markets contribute to market expansion
The conventional segment was valued at USD 11.16 billion in 2018. The hospitality industry and government guidelines have influenced the market, with lockdown scenarios increasing the popularity of homemade meals using fresh fruits and vegetables. However, the loss of plants and nurseries due to quarantine measures affected producers and farmers. The market presents a positive outlook, with innovations in avocado-based snacks, such as chips in various flavors like sea salt, sea salt lime, and roasted chipotle, catering to millennials and non-millennials. Despite the challenges, the year-round availability of imports ensures continued market forecast growth.
North America is estimated to contribute 34% to the growth of the global market during the forecast period. In 2023, the US dominated the market, with California as its largest producer. California's extensive avocado cultivation positively influences volume and cost efficiency. The avocado market in North America is experiencing growth due to the rising awareness of healthy lifestyles and the demand for healthy food products.
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Increasing awareness of health benefits, the launch of new products, and the introduction of novel avocado varieties by companies will drive North America's market growth. The US, as the largest market, sources most avocados from California, where over 3,000 growers cultivate them on 50,000 acres. Further, the hospitality industry and government guidelines also influence market growth, with avocados used in various dishes and as a replacement for processed foods like instant noodles and pizza. However, loss of plants due to lockdown scenarios and quarantine measures may impact production. Avocados, rich in mono-saturated fat, potassium, fiber, folate, essential vitamins, and minerals, are considered superfoods and are used in innovations like sea salt, sea salt lime, and roasted chipotle avocado products.
Companies 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.
The market growth and forecasting research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including Calavo Growers Inc., Costa Group Holdings Ltd., Del Monte Foods Inc., Del Rey Avocado Co. Inc., Fresca Group Ltd., Greenyard NV, Henry Avocado Corp., Index Fresh Inc., JBR Avocados, McDaniel Fruit Co., Melissas World Variety Produce Inc., MHAIAs, Natures Touch Frozen Foods Inc., Propal, Rincon Farms Produce, Salud Foodgroup Europe BV, Tesco Plc, West Pak Avocado Inc., and Westfalia Fruit Pty Ltd.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market continues to thrive amidst changing lifestyles and healthy lifestyle trends. With a surge in awareness about healthy food products and their nutritional values, avocados have gained popularity among both millennials and non-millennials. This rise is particularly notable in regions with a growing middle-class population and increasing import demand.In light of government guidelines and lockdown scenarios, the consumption of avocados has surged as people opt for homemade meals and nutritious snacks over processed foods like instant noodles and pizza. Recognized as one of the superfoods, avocados are rich in mono-saturated fat, potassium, and folate, making them a preferred choice for those prioritizing healthy eating.
Further, in the market, avocado consumption continues to rise globally, with countries like the Dominican Republic playing significant roles in production, evident in FAOSTAT metric tonnes data. Businesses operate through both B2B and B2C channels, supplying avocados to various establishments like convenience stores, specialty shops, hotels, and cafes. Adaptability is key, with software programs aiding in data management, from gathering and cleaning to processing and organizing raw data for business intelligence. Consumers increasingly prioritize healthy lifestyle choices, embracing fresh form avocado for its nutritional values in homemade meals and across the hospitality industry and restaurants.
Moreover, the hospitality industry has embraced avocados in various forms, from vegetarian salads to processed avocados for global packaged salad market offerings. Manufacturers are catering to the snacking trend by introducing innovative avocado-based products like roasted chipotle and sea salt lime variants, conveniently packaged in tetra pak for year-round availability. As import and market growth analysis indicate a positive outlook, both farmers and nurseries are investing in avocado cultivation, ensuring a steady supply and maintaining cold chain integrity to preserve their freshness. With avocados being hailed not just as a protein source but also beneficial for digestion and reducing constipation and colon cancer risk through their impact on the gastrointestinal tract, the future of the market appears promising.
Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.41% |
Market Growth 2024-2028 |
USD 6.89 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.37 |
Regional analysis |
North America, South America, APAC, Middle East and Africa, and Europe |
Performing market contribution |
North America at 34% |
Key countries |
Mexico, Chile, US, Indonesia, and Colombia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Brooks Tropicals LLC, Calavo Growers Inc., Costa Group Holdings Ltd., Del Monte Foods Inc., Del Rey Avocado Co. Inc., Fresca Group Ltd., Greenyard NV, Henry Avocado Corp., Index Fresh Inc., JBR Avocados, McDaniel Fruit Co., Melissas World Variety Produce Inc., MHAIAs, Natures Touch Frozen Foods Inc., Propal, Rincon Farms Produce, Salud Foodgroup Europe BV, Tesco Plc, West Pak Avocado Inc., and Westfalia Fruit Pty Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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