Avocado Oil Market 2023 – 2030 by Application (Food and Beverages, Pharmaceuticals and Medicinal Formulations, Personal Care and Cosmetics, and Others), Type (Extra Virgin Oil, Virgin Oil, Pure/Refined Oil, and Blend) - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : FMCG | Pages : 179 Pages | Published On : Jul 2023
In 2020, the global avocado oil market reached a size of USD 533.53 million. It is projected to grow from USD 553.27 million in 2023 to USD 822.29 million in 2030, with a Compound Annual Growth Rate (CAGR) of 8% during the period from 2023 to 2030. The COVID-19 pandemic has had a significant impact globally, leading to a positive demand shock for avocado oil across all regions. Based on our analysis, the market experienced a growth of 3.90% in 2020 compared to the average year-on-year growth during 2017-2019. The increase in CAGR can be attributed to the recovery of market demand and growth to pre-pandemic levels once the pandemic subsides.
The primary driver for the increased usage of avocado fruit oil in various industries is the rapid growth in income levels in developed countries, coupled with the acceleration of urbanization and the expansion of the upper-middle class. Additionally, the fact that avocado oil is the highest-priced oil used in cosmetics and the food industry has proven advantageous for manufacturers, as it adds a mark of quality to their products. Therefore, major companies are increasingly incorporating this specialty ingredient into their products. Avocado oil is one of the fastest-growing food ingredients due to its health benefits, versatility of use, and nutritional value.
Despite the challenges faced in 2020, such as the impact of COVID-19, the sales of avocado oil have remained robust. For instance, the CEO of the Kenya-based brand Origen Group reported that the demand for avocado fruit oil had not been affected by the pandemic. On the contrary, the company witnessed a growth of approximately 10% in 2020. However, companies have experienced a significant increase in the cost of avocado fruit oil due to factors like scarcity of raw materials, transportation delays, and the temporary closure of processing and packaging plants.
The demand for healthy products has been increasing as people recognize the benefits of leading a healthy life, especially during the COVID-19 pandemic. As border closures are lifted and the global situation gradually normalizes, the market is expected to recover with the easing of lockdown measures and increased public mobility. However, the rise in fuel prices has led to increased transportation costs, impacting oil and other commodity prices.
One of the latest trends in the market is the growing preference for recyclable packaging of oil to promote environmental sustainability. Plastic packaging has drawn attention from consumers due to concerns about plastic waste pollution and the environmental impact of plastic production. By reducing the use of plastic in oil packaging, recyclability is improved, and greenhouse gas emissions are reduced. Bag-in-box packaging offers environmentally friendly solutions that ensure the safety and freshness of oil from filling to end-use. According to the International Life Sciences Institute of India (ILSI), bag-in-box packaging is a cost-effective and high-performance option for edible oil packaging, particularly for institutional users. It features a recyclable monomer P.E. structure for bags, glands, and lids.
The increasing focus on organic oil production is driving market growth. Consumers' growing preference for healthy food and their pursuit of good health and wellness have led to a significant increase in the incorporation of organic food products in their diets. With easy access to information through the internet, consumers are becoming increasingly aware of the need for healthier food options, resulting in a higher demand for organic products.
Organic avocado oil, with its lower saturated fat content and higher good fat content, is considered one of the best oils with various benefits for consumers. As a result, the use of organic oil in the processed food industry is on the rise. Many consumers are willing to pay a premium for high-quality products, which motivates processed food manufacturers to include such ingredients. Companies operating in the market are continuously improving their products by incorporating certified organic oils, further promoting the growth of the avocado oil market. For example, in April 2020, Nutiva, a U.S.-based brand of plant-based organic foods, introduced organic avocado fruit oil in three different variants.
Technological Advancement in Product Manufacturing to Drive Market Growth
The pharmaceutical, food, and personal care industries continue to show interest in the product, and it is gaining attention in emerging areas like nanotechnology and environmental care. In recent times, supplementary technologies have been employed to enhance the yield and quality of the extracted product while reducing pollution. These technologies include supercritical fluid extraction, ultrasound-assisted oil extraction, and pressurized fluids. The significant focus on research and development of improved technologies for maximizing yield is expected to support the steady growth of the global market.
Advancements in extraction technology have positively impacted avocado fruit oil. These technological improvements not only enhance the oil's health profile but also raise the performance standards, including extended shelf life. Energy-efficient processes and technologies that result in higher yields have been gradually introduced over the years. The increasing emphasis on the nutritional quality of the oil and the sustainability of the refining process pose new challenges for oil processors. To meet these new objectives, the development and implementation of ""next-generation"" refining process technology are crucial.
The availability of alternatives and their lower cost, such as sunflower oil and olive oil, are expected to hinder market growth for avocado fruit oil. Additionally, the prevalence of counterfeit products being sold on supermarket shelves is anticipated to have a negative impact on the market. For example, researchers from the University of California (UC), Davis found that a significant portion of avocado oil sold in the U.S. is of low quality, mislabeled, or adulterated with other oils.
By Type Analysis
Demand for Extra Virgin Oil is Likely to Showcase Significant Growth Due to High Quality of Oil
The market is categorized into different types of avocado fruit oil, including extra virgin oil, virgin oil, pure/refined oil, and blend. In 2020, the pure/refined oil segment held a significant share of the market. This segment is highly valued by the cosmetics and personal care industry due to its high vitamin E content, affordability (compared to extra virgin and virgin oil), and its emollient properties. Additionally, the current trend of directly applying natural oils to the skin is expected to have a positive impact on the sales of extra virgin oil. The demand for extra virgin oil is notably increasing in the food sector, as it provides assurance of high quality. The abundance of information available on the nutritional benefits of extra virgin avocado fruit oil is expected to drive the growth of this segment.
By Application Analysis
Food and Beverages Segment to Grow at Fastest Pace Owing to Rising Popularity of Gourmet and Specialty Food Products
The food and beverage sector is projected to experience the highest compound annual growth rate (CAGR) in the coming years. This growth is driven by the increasing consumer preference for specialty products and the efforts of key players to incorporate such ingredients into their processed food offerings. For example, General Mills, a keto-friendly brand, introduced yogurt with high fat content, low carbs and sugar, and a significant protein content per serving by using avocado fruit oil to boost the fat content.
In terms of revenue, the cosmetics and personal care products segment is expected to lead the industry. Despite its green color and low odor, avocado fruit oil is highly regarded as it penetrates the skin well, contains high levels of vitamin E, and has excellent preservation qualities. When used in skin lotions and creams, it creates finer emulsions. Cosmetics companies are therefore inclined to use this ingredient to enhance the quality of their products.
Avocado oil has gained popularity in North America, where consumption is increasing. The North American market reached a value of $272.21 million in 2020 and is expected to dominate the global market throughout the forecast period. This dominance is driven by consumer interest in the nutritional and technological characteristics of avocado fruit oil. Avocado oil used in cooking has proven benefits due to its vitamin E content and high oleic fatty acid content. The region's steady market growth is supported by increasing concerns for better health and a growing interest in diverse dietary components, particularly fats that have been linked to various diseases such as obesity and diabetes. In North America, key players in the avocado market, such as Spectrum Organics Products, La Tourangelle, Inc., and Olivado USA, are focused on expanding their product offerings.
Asia Pacific is expected to experience the highest CAGR in the foreseeable future, primarily driven by the growing popularity of avocado fruit oil in China, Japan, and other countries in the region. China, in particular, has initiated large-scale planting of avocados in provinces such as Guangdong, Yunnan, and Fujian. The Chinese government has plans to increase avocado fruit oil production capacity in the coming years due to the easy availability of raw materials. Furthermore, the demand for avocado oil from other Asian countries like Japan and Malaysia, along with its wide availability through online and offline distribution channels, is expected to drive the regional market.
Europe and South America are expected to experience significant growth in the market due to increasing demand from the food, cosmetics, and personal care industries. Technological advancements, product innovation, and growing consumer awareness about the benefits of the product are anticipated to have a positive impact on the regional market growth. In contrast, the Middle East & Africa region is expected to witness slower market growth. Limited product awareness and marketing efforts are likely to restrict the growth of the regional market to some extent, despite its strong potential consumer base.
KEY INDUSTRY PLAYERS
Leading Companies Focus on Rigorous Innovation and New Product Launches to Maintain Dominant Position
Spectrum Organics Products, La Tourangelle, Inc., Olivado USA, and Grove Avocado Oil are among the most active companies in the market, offering a wide range of premium products. These companies have made significant investments in market research, product innovation, packaging, and enhancing product quality and functionality. For example, in May 2023, Grove Avocado Oil introduced a new everyday oil with a high smoke point, making it suitable for high-heat cooking and stir-frying. Similarly, other companies have formed strategic partnerships with relevant stakeholders to expand their consumer base and strengthen their geographic presence.
LIST OF KEY COMPANIES PROFILED:
- Spectrum Organics Products, LLC (Oregon, U.S.)
- Bella Vado Inc. (California, U.S.)
- The Village Press (New York, New York)
- La Tourangelle, Inc. (California, U.S.)
- Proteco Gold Pty Ltd. (Queensland, Australia)
- Sesajal S.A de C.V. (JALISCO, Mexico)
- Grupo Industrial Batellero (Lerma de Villada, Mexico)
- Grove Avocado Oil (Bay of Plenty Region, New Zealand)
- Cibaria International (California, U.S.)
- Olivado USA (Florida, U.S.)
KEY INDUSTRY DEVELOPMENTS:
- In October 2023, Jackson's Honest, a U.S.-based brand, expanded its snack portfolio by introducing new packaging for its sweet potato chips. Alongside the original Sea Salt with Coconut Oil chips, the lineup now includes three new flavors made with avocado oil: Spicy Tomatillo, Sea Salt, and Carolina BBQ.
- Vital Farms, based in Austin, Texas, launched a new product in August 2023: pasture-raised butter with sea salt and avocado oil. This combination of butter, 100% pure avocado oil, and sea salt creates a flavorful and creamy tub butter, ideal for various cooking occasions.
- Catania Oils, a U.S.-based company, released a 750 ml version of Marconi Avocado Fruit Oil for private labeling in April 2023. This new size is smaller than a previously launched version of the product.
- In March 2023, French brand Laboratoires Expanscience introduced a new organic avocado fruit oil obtained through the cold pressing of dehydrated whole avocados. This oil is known for its emollient and nourishing properties.
- Glow Recipe, a New York-based brand, announced the launch of Avocado Ceramide Recovery Serum in March 2023. This serum, available for purchase through the brand's website and Sephora.com, contains avocado fruit oil and ceramides, which help soothe the complexion and improve its moisture barrier.
The global avocado oil market report provides both quantitative and qualitative insights into the market. It offers a comprehensive analysis of the demand, market size, and growth rates for all potential market segments. The report includes various key insights, such as an overview of the parent market, competitive landscape, market opportunities, and recent industry developments such as expansion strategies, regulatory scenarios in critical countries, and key industry trends.
REPORT SCOPE & SEGMENTATION
- Extra Virgin Oil
- Virgin Oil
- Pure/Refined Oil
- Food and Beverages
- Pharmaceuticals and Medicinal Formulations
- Personal Care and Cosmetics
North America (By Type, Application, and Country)
- U.S. (By Application)
- Canada (By Application)
- Mexico (By Application)
Europe (By Type, Application, and Country)
- U.K. (By Application)
- France (By Application)
- Germany (By Application)
- Italy (By Application)
- Spain (By Application)
- Rest of Europe (By Application)
Asia Pacific (By Type, Application, and Country)
- China (By Application)
- India (By Application)
- Japan (By Application)
- Australia (By Application)
- Rest of Asia Pacific (By Application)
South America (By Type, Application, and Country)
- Brazil (By Application)
- Chile (By Application)
- Rest of South America (By Application)
Middle East and Africa (By Type, Application, and Country)
- South Africa (By Application)
- UAE (By Application)
- Rest of ME&A (By Application)
Table and Figures
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