Avocado oil market is estimated to be valued at USD 665.9 Mn in 2024, growing at a CAGR of 5.7% over the forecast period (2024-2031). Furthermore, the market is witnessing steady rise in demand attributed to expanding applications in the cosmetics and personal care industries along with increasing consumer awareness regarding health benefits of avocado consumption.
Growing health awareness
Avocado oil is gaining widespread popularity owing to abundant health benefits associated with its regular consumption such as improved heart health, weight management, and anti-aging properties. The rising prevalence of lifestyle diseases has prompted consumers to adopt healthier eating habits and ingredients in their diet. This growing focus on preventive healthcare is propelling the demand for avocado oil globally.
Expanding applications in cosmetics industry
Avocado oil contains various essential vitamins and fatty acids that makes it an ideal ingredient for use in natural skin and hair care products. Its high smoke point makes it suitable for cosmetic formulation. Cosmetic manufacturers are increasingly utilizing avocado oil in products such as moisturizers, lotions, and hair masks due to its hydrating and nourishing properties. This widespread applications is boosting the market growth.
Growing Health Awareness among Consumers is Driving the Demand for Avocado Oil
Consumers are increasingly becoming health conscious and focusing on adding super foods like avocados to their diet. Avocado oil is considered very healthy as it contains monounsaturated fatty acids which are good for heart health. It also contains antioxidants and vitamins E, K, and B6. The health benefits of avocado oil such as supporting weight loss, improving skin, and hair health are driving more people to include it in their daily diet. Food products with avocado oil are seeing higher demand from those looking for healthier cooking oil options. The marketing of avocado oil as a premium super food oil by producers is effectively communicating its health advantages to consumers.
Increasing Applications in Cosmetics and Personal Care Products is Boosting the Avocado Oil Consumption
Avocado oil's moisturizing and nourishing properties makes it suitable for use in cosmetics and personal care products. It is used as an ingredient in skin creams, lotions, hair masks, and other beauty products. Manufacturers are launching new products focused on skin and hair care that contain avocado oil due to its ability to hydrate and reduce signs of aging. The growth in premium natural cosmetic brands using avocado oil extracts is propelling more demand. Increasing consumer preference for natural cosmetics without harsh chemicals is driving the use of avocado oil in this lucrative market. The multi-purpose nature of avocado oil for both food and cosmetic applications gives it an advantage over other edible oils.
Climate Change Impacting Avocado Production
Any disruption in avocado cultivation and supplies due to adverse weather conditions poses a restraint on the avocado oil market's growth. Most major avocado producing regions are vulnerable to climate change effects like rising temperatures, erratic rainfall, and droughts which negatively impact avocado yields. This leads to higher production costs and supply constraints of avocado fruit used to extract the oil. Extreme weather events destroy avocado crops, creating an unstable supply situation. Dependence on just a few regions for the majority of global avocado production also makes the market risky in case of local natural calamities. Fluctuating avocado prices and supplies due to climate risks undermine consistent market expansion.
High Cost of Avocado Oil Limits Widespread Adoption
The cost of avocado oil remains significantly higher compared to other popular edible oils such as olive, soybean, and sunflower oils used widely in food applications. This price difference acts as a restraint for many consumers and larger industrial buyers wanting to switch to avocado oil. Premium quality organic and cold-pressed avocado oil varieties are even more expensive, limiting their volume growth potential. High production costs involved in avocado cultivation and extraction of high-quality oil keep prices elevated. For avocado oil demand to increase at a faster rate, bringing down manufacturing costs through economies of scale and technology is crucial to make the product more affordable.
Growing Foodservice Demand from Restaurants Present an Opportunity
Several fancy restaurants and hotel chefs are incorporating high-end avocado oil in their menus to attract health-conscious diners. The unique flavor profile of avocado oil allows experimentation in gourmet salads, dips, and cooking diverse cuisines. The growing popularity of avocado toast and other avocado-based dishes in cafes, fast casual chains, and fine dining establishments is fueling the foodservice sector demand. Producers can tap this opportunity by marketing premium avocado oil varieties directly to foodservice buyers and food brands. Providing business solutions for industrial usage can help expand market presence beyond retail. Partnerships with leading restaurants open new revenue streams.
Rise of Online Retailing Widens Avocado Oil Distribution
The rapid e-commerce growth, especially post-COVID-19 era, enhanced avocado oil accessibility. Online platforms enable producers to sell direct-to-consumer nationwide and overseas markets. This removed limitations of needing physical retail shelf space. Shopping convenience of doorstep deliveries draws more users who may not earlier find avocado oil offline. Availability on leading e-shops like Amazon provides global visibility and easy purchase options. Innovative startup brands can reach customers cost-effectively. Live cooking tutorials and social selling extends digital outreach. E-retail expansion leverages technology to open untapped geographical consumer bases for avocado oil companies and promotes variety through curated collections.
In conclusion, the global avocado oil market is driven by rising health awareness and cosmetic applications while facing challenges from climate change impacts and high costs. However, opportunities from growing foodservice and online retailing sectors can help sustain its long term growth trajectory.
*Link: https://www.coherentmarketinsights.com/market-insight/avocado-oil-market-1058
Key Developments
- In March 2023, Westfalia Avocado new season launched in India
- In August 2023, Avocado Oil Producer Chosen Foods Launches the “First-Ever” Pumpkin Spice Avocado Oil Caviar
- In October 2021, a U.S.-based brand, Jackson’s Honest, expanded its snack portfolio of potato chips with new packaging. In addition to company’s original Sea Salt with Coconut Oil chips, the line-up contains three new flavors made with avocado oil: Spicy Tomatillo, Sea Salt, and Carolina BBQ.
- In August 2021, Vital Farms, situated in Austin, Texas, launched pasture-raised butter with avocado oil and sea salt. This creamy and flavorful tub of butter is made from 100% pure avocado oil and sea salt.
Key Players
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, Chosen Foods LLC, Storino's Quality Products., Aromex Industry, AOS Products Pvt. Ltd., Gustav Heess, Spectrum Organics Products, LLC, La Tourangelle, Inc., Proteco Gold Pty Ltd., Grove Avocado Oil, Cibaria International, Plenty Foods, Avocado Oil New Zealand Ltd, and AG Organica
