The avocado oil market is primarily driven by increasing demand from cosmetic and personal care industry. Avocado oil contains natural nutrients like vitamins A, D, E and B6 along with omega fatty acids that provides numerous skin and hair benefits. It is a great moisturizer and skin softener that helps treat dry flaky skin, acne scars and signs of aging. The lightweight texture of avocado oil makes it an ideal ingredient in various cosmetic products like face creams, lotions, hair masks and massage oils. The growing working women population and increasing disposable income have propelled the sales of premium cosmetic products containing avocado oil.
The global avocado oil market is estimated to be valued at USD 665.9 Mn in 2024 and is expected to reach USD 981.7 Mn by 2031, growing at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
Key Takeaways
Key players operating in the avocado oil market are Sesajal S.A. de C.V., Olivado, Grupo Industrial Batellero S.A. de C.V, YASIN, Tron Hermanos SA de CV, The Village Press, Bella Vado. Key players are focusing on new product launches with innovative formulations and packaging to cater to changing consumer preferences.
avocado oil market size is witnessing significant growth owing to rising awareness about health benefits of avocado oil. Consumption of avocado oil has numerous health advantages as it contains heart-healthy monounsaturated fatty acids and antioxidants that may help reduce cholesterol levels, blood pressure, risk of heart disease and stroke.
Advancements in extraction technology have improved product quality and yield of avocado oil. New techniques such as cold pressing and chemical free methods preserve superior nutrition content and flavors in comparison to conventional extraction processes. This has augmented the use of avocado oil across industries.
Market Trends
- Growing popularity of vegan and plant-based diets: Rising vegan population and health consciousness is driving the adoption of avocado oil as cooking medium. Its mild taste and high smoke point make it a suitable replacement for animal-based oils in plant-based foods.
- Innovation in product offerings: Companies are innovating avocado oil products with varied flavours and customization as per end-use. Introduction of functional varieties enriched with other superfoods is an emerging trend in the market.
Market Opportunities
- Untapped regional markets: Latin American countries producing avocados offer immense growth opportunities. Penetration of avocado oil can be increased in Asian and African countries through effective marketing and regional product formulations.
- Scope for new applications: Emerging application areas like clinical research and use in biodiesel production provide lucrative scope for avocado oil market expansion over the forecast period.
Impact of COVID-19 on Avocado Oil Market Growth
The coronavirus pandemic has impacted the avocado oil market in different ways. During the initial phases of lockdown in 2020, the supply chain disruptions hampered the market growth. As retail stores and restaurants were closed, the demand from foodservice declined sharply. However, the demand from retail and e-commerce skyrocketed as people stocked essential items. With work and study from home becoming a norm, the demand for high-quality cooking oils increased. As avocado oil is considered highly nutritious and healthy, it witnessed increased adoption from health-conscious consumers.
Post lockdowns, as economies reopened gradually, the foodservice demand also revived. However, restrictions on international travels continued to impact trade and exports. Avocado producing regions witnessed lower prices initially due to oversupply caused by disruptions. Major producers increased supplies to domestic markets. The industry players adapted to challenges through innovative marketing strategies. Online platforms played a vital role in reaching customers. Companies ensured adequate stocks and continuity of supplies through collaborative efforts.
Going forward, the avocado oil market is expected to grow steadily. While volatility may continue in short term depending on pandemic situation, the focus on healthy oils and convenience cooking is anticipated to boost demand. Producers will need to ensure supply chain resilience and focus on local as well as international markets through effective distribution channels. Digital transformation and sustainability initiatives will be important for gaining consumer confidence in post COVID world.
Avocado Oil Market Growth in Geographical Regions
In terms of value, North America dominated the global avocado oil market holding around 60% share in pre-COVID year of 2019. The USA accounted for the major consumption due to high health awareness, changing lifestyles and presence of major producers. Mexico has been the leading producer and exporter globally.
Europe remained the second largest regional market owing to increasing adoption of plant-based oils in countries such as Spain, Italy and Germany. Central and South America including major producers like Peru, Chile and Colombia have showcased rapid growth rates in recent years supported by favorable climatic conditions and agricultural development.
The Asia Pacific region excluding Japan (APEJ) market demonstrated fastest growth trajectory pre-pandemic driven by robust economic expansion across countries like China, India and South East Asian markets. Rising health consciousness of growing middle class, inculcation of western diets and investments by international companies provided impetus to avocado oil demand across APEJ region making it an attractive market for future.
Learn more insights straight from the source
Avocado Oil Market is experiencing surging demand driven by health benefits
High Growth of Avocado Oil Market Owing to Versatile Health Benefits
Avocado Oil Market is Estimated to Witness High Growth Owing to Expanding Health and Wellness Trends
Avocado Oil Market Poised for High Growth Amid Rising Health Awareness
About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
(LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )