Avocado Oil Market Analysis North America,APAC,Europe,South America,Middle East and Africa - US,Canada,China,Japan,UK,Germany - Size and Forecast 2023-2027

Avocado Oil Market Forecast 2023-2027

The avocado oil market size is forecast to increase by USD 516.45 million, at a CAGR of 12.95% between 2022 and 2027. The market is propelled 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.

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

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Market Segmentation 

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.

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. 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. A holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.   

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 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. 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.

Customer Landscape

Our market forecasting analysis of the lifecycle of the market research and growth 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 market growth and forecasting strategies from 2022 to 2027.

Customer Landscape

Who are the Major Companies?                                     

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

A G Industries - 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 companies, including:

• 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
• Westfalia Fruit Pty Ltd.

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.

What is the Fastest-Growing Segment in the Market?

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.

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 303.39 million in 2017 and will continue to grow by 2021. 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.

Which are the Key Regions for the Market?

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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 market trends and drivers that shape the market during 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 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. 

Segment Overview

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.

• 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

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 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

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 growth 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 market 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 and its contribution to the parent market.
• Accurate predictions about  upcoming trends and changes in consumer behaviour
• Growth of the industry across North America, APAC, Europe, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive details of factors that will challenge the growth of market vendors

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