Avocado Oil Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Canada, Japan, UK, Germany - Size and Forecast 2024-2028

Avocado Oil Market Size 2024-2028

The avocado oil market size is projected to increase by USD 778.7 million with growth at a CAGR of 16.24% between between 2023 and 2028. The market is driven by several factors, notably the health benefits associated with its consumption, including its high content of monounsaturated fats and various vitamins. Another key driver is its higher smoke point, making it suitable for various cooking methods compared to others. Additionally, avocado oil's versatile applications in both culinary and cosmetic industries contribute to its growing demand. These factors, collectively fuel the market's growth trajectory, attracting health-conscious consumers and culinary enthusiasts alike to embrace the benefits in their daily lives.

Market Overview

The market shows an Accelerated CAGR during the forecast period.

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Market Dynamics and Customer Landscape

The market is driven by increasing consumer preference for natural and organic products, particularly among vegans and vegetarians. It is known for its health benefits and versatility, and finds applications in the beauty and personal care industry, especially in hair care products. Rising awareness about the benefits of plant-based diets further propels market growth, with supermarkets and hypermarkets witnessing increased demand. However, challenges such as competition from other organic, technological advancements in extraction methods, and shelf life concerns pose obstacles to market expansion amidst the trend toward environmental care. 

Key Market Driver

The health benefits of avocado oil are notably driving the 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, and wound healing, eliminates microbial infections, and reduces inflammation. The high amount of oleic acid enables it to remain fresh for a long time, making it ideal for high-temperature cooking without losing its properties and benefits. It is also a good source of vitamins, including vitamin E, K, C, B5, B6, and more, which improve memory, eyesight, skin, boosts the immune system, and increase the overall efficiency of the digestive system.

The monounsaturated fats, minerals, and vitamins are present in improving the overall functioning and efficiency of the digestive system and helping to reduce weight while providing the body with more energy. It 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 bad cholesterol, improves hair, gums, and skin by reducing skin damage and wrinkles, moisturizing the skin, and nourishing the hair. In addition, it helps to reduce joint pains, improves eye conditions, neutralizes free radicals, enhances wound healing, and more. Regular consumption and usage of can significantly improve health conditions.

Significant Market Trends

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. It 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 oil blends, such as avocado and olive oil blends, can be used for cooking and for massaging dry, sensitive, and mature skin. It 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 are available in the market. These factors will influence the market growth during the forecast period. 

Major Market Challenge

Stringent regulations may impede market growth. Companies 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.

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 market during the forecast period.

Market Segmentation

The market is witnessing significant segmentation driven by a surge in health-conscious consumer trends. As antioxidants gain prominence in health circles, avocado oil emerges as a favored choice due to its rich antioxidant content. Moreover, the market is buoyed by the growing demand for vegan and vegetarian products, with avocado oil being a popular option in natural and organic segments. Its versatility spans across various applications in the beauty and personal care industry, particularly in hair care products. Food and beverages applications dominate, with avocado oil being stocked in major supermarkets and hypermarkets, catering mainly to consumers in developed countries. This growth is further propelled by the increasing urbanization and the rising preference among the upper-middle class for organic food products. Technological advancements in extraction technology ensure the retention of essential nutrients, enhancing shelf life and promoting environmental care by offering sustainable alternatives to traditional oils like sunflower oil.

By Product

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, and others (butter, blends, and sprays). Extra virgin has a very high smoke point. It is manufactured using the cold-pressed extraction process. Since it is produced at a low temperature, it has high nutritional content, aroma, and strong flavour. 

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The refined avocado oil segment showed a gradual increase in market share with USD 342.9 million in 2018. Other forms 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. Moreover, the cost of crude oil is comparatively lower than that of processed oil, and several vendors in the 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 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.

By Region

North America is estimated to contribute 42% to the growth of the global market during the forecast period

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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.  The US, Canada, and Mexico are the leading consumers in the region. Growing awareness about a healthy lifestyle is one of the factors that is driving the demand for 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, such as the presence of essential vitamins and minerals, fiber, and ant-oxidants, is also increasing the demand in North America. The consumers in the region prefer purchasing healthy oils over other oils. Hence, the demand for oils, such as olive oil, canola oil, rice bran oil, and other similar oils, is increasing in the region. 

Key Companies & Market Insights

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 forecasting growth and analysis.

• A G Industries - The company offers avocado oil, such as cold-pressed avocado oil.

The  market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:

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.

The market analysis and report of qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Product Outlook 
  • Refined avocado oil
  • Crude avocado oil 
• 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
    • Argentina
    • Brazil
    • Chile

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Market Analyst Overview 

The market is thriving with diverse applications across the food and beverages industry, catering to health-conscious consumers in the food sector. With growing concerns about the saturated fat content in traditional oils, avocado oil stands out for its good fat content and is increasingly preferred in the processed food industry. Recognized for its certified organic status, its benefit from technological advancements like supercritical fluid extraction and ultrasound-assisted oil extraction, ensuring purity and quality. It finds applications not only in the culinary world but also in the pharmaceutical industry due to its nutritional benefits and vitamin E content. Avocado oil's emollient properties make it a sought-after ingredient in the cosmetics and personal care industry, offering natural solutions for skincare. As the demand for plant-based products surges, emerges as a staple, providing essential protein, fibers, vitamins, and minerals, reflecting consumers' growing health consciousness.

Additionally, the market thrives across various sectors, with notable applications in food and beverages due to its versatility and health benefits. Consumers seek certified organic oils for their purity, while technological advancements like nanotechnology ensure product quality and safety, combating counterfeit products. Avocado oil comes in different variants, including extra virgin, virgin, and pure/refined oil, catering to diverse preferences in the food and beverage application segment. It extends beyond culinary use, finding its way into cosmetics and personal care products, where its properties rival those of lanolin. Rich in soluble and insoluble fibers, along with essential vitamins. Avocado oil, known for its nutrition benefits and versatility in skincare products, food and beverages applications, and specialty products, is available in various types, such as extra virgin oil and organic oil.

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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 2024 and 2028
• 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
• Market growth analysis across North America, APAC, Europe, South America, and Middle East and Africa
• 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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