Avocado oil is a popular culinary oil extracted from the pulp of avocados. It has a mild taste and contains essential vitamins, minerals and fatty acids that provide several health benefits. Avocado oil helps reduce inflammation, lower bad cholesterol and support skin and hair health. Due to its high smoke point, it is widely used in cooking and dressing salads. Advantages over other oils include higher nutrient value, long shelf-life when packaged and versatility in cooking applications. The growing awareness about health advantages of natural oils has increased consumer interest in avocado oil as a substitute for butter and vegetable oils.
The global avocado oil market is estimated to be valued at US$ 1660.15 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the avocado oil market is the rising demand for cold-pressed avocado oil. Unlike refined oil, cold-pressed avocado oil is processed at lower temperatures without using any chemical solvents, which helps retain maximum nutrients. It is believed to offer even more health benefits compared to refined avocado oil varieties. Manufacturers are focusing on producing high-quality cold-pressed avocado oil to cater to consumer demand. Another significant trend is the increasing incorporation of avocado oil in beauty and personal care products for its hydrating and anti-aging properties. Cosmetic brands are introducing innovative avocado oil infused formulas for hair, skin and body care to leverage the growing popularity.
Threat of new entrants: The threat of new entrants is moderate. While the avocado oil market growth prospects are attractive, there are significant costs associated with establishing processing facilities and distribution networks.
Bargaining power of buyers: The bargaining power of buyers is moderate to high. Buyers have several options to choose from and look for high quality and competitive prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While a few large suppliers exist, there are also many small orchards and farms supplying avocados.
Threat of new substitutes: The threat of substitutes is moderate. Olive oil and other vegetable oils can substitute avocado oil to some extent based on application and price.
Competitive rivalry: Competition in the market is high as the major players compete on the basis of product quality, price and innovation.
The Global Avocado Oil Market Demand is expected to witness high growth over the forecast period. The global avocado oil market is estimated to be valued at US$ 1660.15 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030.
North America dominates the market currently due to high consumption. Mexico and Chile are the largest producers globally. Europe and Asia Pacific are expected fastest growing regions due to increasing health awareness and rise in use for cooking and cosmetics purposes. Latin America is also a major producer and consumer region.
Key players: Key players operating in the avocado oil market are Cargill Incorporated, Archer Daniels Midland Company (ADM), Bunge Limited, Ingredion Incorporated, Tate & Lyle PLC, Didion Milling, Semo Milling, Agrana Beteiligungs-AG, The Andersons, Inc., LifeLine Foods. The companies compete on the criteria of quality, supply chain, and innovation to serve the increasing demand.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it