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The avocado market size is forecast to increase by USD 5.67 billion between 2022 and 2027, accelerating at a CAGR of 6.58%. The surging interest in plant-based diets acts as a significant driver propelling market growth. Consumers increasingly opt for plant-based eating, driven by health benefits and environmental concerns. Avocado varieties, renowned for their nutritional richness and versatility, align perfectly with this trend. They offer numerous health benefits, including healthy fats, fiber, and essential vitamins, satisfying the demand for nutrient-rich alternatives. With their creamy texture and mild flavor, avocados cater to various culinary applications.
Market growth is fueled by a heightened focus on strengthening distribution networks, offering superfood manufacturers ample opportunities to expand sales volumes. Global vendors prioritize enhancing partnerships with retailers and e-commerce platforms to meet the escalating demand for superfoods. However, avocado oil faces a notable challenge due to consumer unawareness, despite the fruit's widespread fame globally. Compared to popular oils like olive, coconut, soybean, and canola, avocado oil struggles due to limited awareness and higher prices, impacting consumer preference.
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The offline distribution channel generated higher revenues than the online channel in 2022. 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. This can lead to higher sales and popularity of agro products such as avocados in offline channels. Offline retail outlets provide consumers with a convenient and easy way of buying fruits and vegetables. More people rely on convenient and useful food options, such as organic avocados available at local markets, due to the continuing growth of urbanization around the world. All this will spur the demand for avocados through offline channels, which, in turn, will boost the growth of the global market during the forecast period.
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Online shopping offers consumers the convenience of browsing and purchasing raw fruits and vegetables from the comfort of their homes. It is especially beneficial to people who are working and may be restricted in their mobility. Online sales channels may offer eco-friendly packaging options and promote sustainable practices, appealing to environmentally conscious consumers. Consumers are better informed in their purchasing decisions when it comes to transparency. As the urban population across the world grows, consumers in such areas may find it more convenient to shop online, especially for agricultural products that may not be readily available in densely populated urban areas.
The market share growth by the conventional segment will be significant during the forecast period. The demand for conventional avocados is expected to increase during the forecast period, owing to awareness among people about the health benefits of avocados, as they are rich in essential vitamins and minerals. During the forecast period, the application of avocados to manufacture a number of food products is expected to increase demand for traditional avocados.
The conventional segment was valued at USD 10.59 billion in 2017 and continued to grow until 2021. Avocados are used to produce avocado oil, guacamole, and salads. The launch of new products based on avocados will help in the growth of the segment during the forecast period. They are liked by Budget-conscious consumers, as conventional Avocados do not cost much more than Organic Avocados.
Organic avocados are produced without synthetic pesticides, herbicides, and genetically modified organisms (GMOs). Organic options may appeal to consumers with concerns about the residues of chemicals in their food. The high price of organic avocados, when compared with conventional avocados, can hamper the growth of the segment during the forecast period. On average, organic avocados are priced about 40% more than conventional avocados. Different rules are set out by the regulatory authorities in some countries. Thus, the high price of organic avocados and stringent regulations pertaining to organic food products will affect the growth of the segment.
North America is estimated to contribute 34% to the market research and growth of the global market during the forecast period. 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. In 2022, the US dominated the market, with California as its largest producer. California's extensive avocado cultivation positively influences volume and cost efficiency.
Consumer awareness of avocados' nutritional value and the demand for avocado-infused products are key growth drivers. companies are responding with innovative offerings. Heightened production across North America also contributes to trade. In 2021, Mexico and the Dominican Republic were major producers, with Michoacan leading Mexico's production.
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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 adaptability, 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.
The burgeoning interest in plant-based diets is a significant catalyst propelling the market forward. Increasingly, consumers are turning to plant-based eating, spurred by health benefits and environmental concerns. Avocado varieties, known for their nutritional richness and adaptability, are well-positioned within this trend. They offer a plethora of health benefits, including healthy fats, fiber, and essential vitamins, meeting the demand for nutrient-rich alternatives. With their creamy texture and mild taste, they cater to diverse culinary uses.
Furthermore, their ability to emulate animal product textures and flavors complements the shift toward plant-based eating. This trend is expected to drive market expansion, emphasizing sustainability, export markets, and consumer preferences in farming practices, distribution channels, and packaging innovations.
The market growth is fueled by the rising focus on strengthening distribution networks, offering superfood manufacturers ample opportunities to expand sales volumes. Global vendors prioritize enhancing partnerships with retailers and e-commerce platforms to meet the escalating demand for superfoods.
Major players like Del Monte Pacific Limited and Archer Daniels Midland Company extend their retail presence to convenience stores and food service outlets, alongside existing collaborations with supermarkets and hypermarkets. With the increasing preference for online grocery shopping globally, manufacturers like Navitas Organics and Sunfood capitalize on direct sales through proprietary websites to reduce operating costs. This trend, coupled with market forecasting, drives growth prospects, particularly in advanced markets witnessing rapid online grocery sales growth.
Avocado oil faces a significant hurdle as many remain oblivious to its existence despite the popularity of avocado products worldwide. Unlike well-known oils like olive, coconut, soybean, and canola, avocado oil struggles to garner attention, primarily due to its limited promotion and comparatively higher price.
In regions like New Zealand and Australia, avocado oil's average selling price per 250 ml bottle stands at USD5, whereas olive oil ranges from USD2 to USD10. Despite its rich calcium content and potential benefits, avocado oil suffers from inadequate marketing efforts, leading to consumer unawareness. This deficiency, coupled with limited advertisements and modern retail strategies, may hinder market growth and forecasting for avocado oil.
The market is fragmented in nature. Some significant players include Brooks Tropicals LLC, Calavo Growers Inc., Costa Group Holdings Ltd., Del Monte Foods Inc., Del Rey Avocado-Co. Inc.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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 avocado 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.
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 avocado market appears promising
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 - 2021.
Avocado Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.58% |
Market growth 2023-2027 |
USD 5.67 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.98 |
Regional analysis |
North America, South America, APAC, Middle East and Africa, and Europe |
Performing market contribution |
North America at 34% |
Key countries |
Mexico, US, Indonesia, Chile, 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 AvocadoCo. Inc., Fresca Group Ltd., Greenyard NV, Henry AvocadoCorp., Index Fresh Inc., JBRAvocados, 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 growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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