Avocado Market Analysis - North America, South America, APAC, Middle East and Africa, Europe - Mexico, US, Indonesia, Chile, Colombia - Size and Forecast 2023-2027

Avocado Market Forecast 2023-2027

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.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

Avocados have gained significant market attention due to their numerous health benefits and unique taste. The avocado market is thriving, with various producers and suppliers catering to the growing demand. Markets in North America and Europe are major consumers, with Mexico being the largest producer. Avocado production processing involves harvesting, transporting, and distributing the fruits to various markets. Producers use modern techniques such as proper irrigation, pest control, and post-harvest handling to ensure high-quality avocados. Markets are segmented based on types, such as Hass and Fuerte, and distribution channels, including supermarkets, restaurants, and online sales. The avocado market is projected to grow further due to increasing consumer awareness and the versatility of avocados in various dishes. Producers and marketers must focus on sustainable farming practices and efficient supply chain management to meet the growing demand.

By Distribution Channel

The offline distribution channel generated higher revenues than the online channel in 2022. The conventional segment was valued at USD 10.59 billion in 2017 and continued to grow until 2021. 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 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 growth.

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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.

Market Segmentation by Product

The market is projected to expand due to rising consumer awareness regarding the nutritional benefits of avocados. Rich in protein and calcium, avocados are an ideal snack for urban populations following modern trends. The fruit's high digestive value, aiding constipation and gastrointestinal health, makes it a popular choice. Avocados are used in various food products, including vegetarian salads, guacamole, and processed avocado oil. Tetra Pak packaging ensures the preservation of freshness and cold chain distribution, increasing consumption. Changing lifestyles and urbanization have led to the growth of modern retail channels, providing easy access to raw avocados and processed avocado products. The launch of new avocado-based products, such as Westfalia Fruit's extra-virgin avocado oil, further boosts market growth.

Key Regions for the Market

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.

The avocado market in North America is experiencing growth due to the rising awareness of healthy lifestyles and the demand for healthy food products. The US, as the largest market, sources most avocados from California, where over 3,000 growers cultivate them on 50,000 acres. This increased production contributes to the market's growth in terms of both revenue and volume. The middle-class population's preference for nutritious snacks, especially among millennials and non-millennials, fuels import demand in advanced markets. 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.

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Market Dynamics 

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.

Key Market Drivers

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. 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. 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. This trend is expected to drive market expansion, emphasizing sustainability, export markets, and consumer preferences in farming practices, distribution channels, and packaging innovations.

Significant Market Trends

The market growth is fueled by the rising focus on strengthening distribution networks, offering superfood manufacturers ample opportunities to expand sales volumes. 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. 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.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.

Major Market Challenges

Avocado oil faces a significant hurdle as many remain oblivious to its existence despite the popularity of avocado products worldwide. The 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. 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.

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.

Market Companies Overview

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.

Market Analyst Overview

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.

 

In the avocado 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 avocado market appears promising

Segment Overview

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.

• Product Outlook 
  • Conventional
  • Organic
• Distribution Channel Outlook 
  • Offline
  • Online
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil 

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	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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, South America, APAC, Middle East and Africa, and Europe
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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