Avocado Oil Market Size, Share & Industry Analysis, By Type (Extra Virgin Oil, Virgin Oil, Pure/Refined Oil, and Blend), Application (Food and Beverages, Pharmaceuticals and Medicinal Formulations, Personal Care and Cosmetics, and Others), and Regional Forecast, 2024-2032

The global avocado oil market size was USD 604.76 million in 2023 and is projected to grow from USD 637.42 million in 2024 to USD 1,134.81 million by 2032 at a CAGR of 7.48% over the 2024-2032 period. North America dominated the avocado oil market with a market share of 50.88% in 2023. Moreover, the avocado oil market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 293.27 million by 2032, driven by growing popularity of the product among U.S. consumers due to its nutritional and technological characteristics.

The major factor behind the increasing use of avocado fruit oil in several industries is the high-income growth rate in developed countries, accompanied by the acceleration of urbanization and the expansion of the upper-middle class. Moreover, the fact that it is the highest-priced oil used in cosmetics and the food industry has proved beneficial to manufacturers who use the product, as it marks their products as quality items. Therefore, major companies are inclined toward incorporating such specialty ingredients in their products. It is one of the fastest-growing food ingredients for health benefits, versatility of use, and nutrition.

Even if 2020 has been challenging in many aspects, the sales of avocado oil have been going rather well. For instance, the CEO of Kenya-based brand Origen Group reported that COVID-19 had not impacted the demand for avocado fruit oil. On the contrary, the company had seen it increase by around 10% in 2020. However, companies have witnessed a steep rise in avocado fruit oil costs due to various factors such as raw material scarcity, transportation delays, and firm closure of processing and packaging plants.

Currently, people are recognizing the benefits of living a healthy lifestyle, and this has resulted in the rising demand for the product during COVID-19. The global situation is gradually normalizing as border closures are being lifted. The easing up of the lockdown, which has allowed public mobility, is expected to help recover the market in the following years. However, rising fuel prices have increased transportation costs, thereby impacting oil and other commodity prices.

Avocado Oil Market Trends

Advertising a Green Brand Image to Drive the Product Demand in the Upcoming Years

The increasing inclination toward recyclable packaging of oil to maintain environmental sustainability is one of the latest trends in the market. Plastic packaging has attracted attention from many consumers due to plastic waste pollution and the impact of plastic production on the environment. Using less plastic in the packing used for oil helps in recyclability and the reduction of greenhouse gases. The bag-in-box packaging provides environment-friendly solutions to ensure oil remains safe and fresh from filling to end-use. According to the International Life Sciences Institute of India (ILSI), bag-in-box is a cost-effective, high-performance form of edible oil packaging designed to meet the needs of institutional users. It can also be combined with distribution options to meet customer needs. It has a recyclable monomer P.E. structure for bags, glands, and lids.

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Avocado Oil Market Growth Factors

Rising Focus on Organic Oil Production to Aid Growth

The consumers growing inclination toward healthy food as a pursuit toward good health and wellness has significantly increased the incorporation of organic food products in their daily diets. The easier access to infinite information with the help of the internet has made consumers increasingly aware of their healthier need for food, leading to the increase in demand for organic products.

Organic avocado oil is among the best oils with lower saturated fat content and higher good fat content, and it provides various benefits to people. Therefore, the incorporation of organic oil is increasing in the processed food industry. Moreover, most consumers are ready to pay a little extra for supreme quality products, which encourages processed food manufacturers to incorporate such ingredients. The companies operating in the market continue to enhance their products with certified organic oils, which is predicted to promote the avocado oil market growth. For instance, in March 2021, Laboratoires Expanscience, a France-based pharmaceutical company, launched its new organic avocado oil by cold-pressing dehydrated whole avocados sourced from Peru. This new organic virgin avocado oil has been certified as 100% organic by Ecocert Greenlife according to COSMOS standards.

Technological Advancement in Product Manufacturing to Drive Market Growth

The product continues to be of interest to the pharmaceutical, food, and personal care industries and is also generating better attention in other areas such as nanotechnology and environmental care. Recently, new supplementary technologies have been applied to improve the extracted product's yield and quality and decrease pollution. These technologies include supercritical fluid extraction, ultrasound-assisted oil extraction, and pressurized fluids. The extensive focus on research and development of better technologies to produce the maximum yield is anticipated to support the steady growth of the global market.

Avocado fruit oil benefits from continued advancements in extraction technology. Improvement in technology impacts the oil when it comes to their health profile and also sets the performance bar higher with high extended shelf life. Over the years, more energy-efficient processes and technologies, leading to higher yields, have been gradually introduced. The growing importance of the (nutritional) quality of the oil and the sustainability aspect of the refining process are new challenges for oil processors. To achieve these new goals, “next-generation” refining process technology must be developed and implemented

RESTRAINING FACTORS

Presence of Alternatives is Expected to Hinder Market Growth

The easy availability and lower price of avocado fruit oil substitutes, such as sunflower oil and olive oil, are expected to restrain the market growth. Moreover, the increasing presence of counterfeit products on supermarket shelves is anticipated to negatively impact the market. For instance, according to the data published by researchers from the University of California (UC), Davis, majority of the product sold in the U.S. is either of low quality, mislabeled, or adulterated with other oils.

Avocado Oil Market Segmentation Analysis

By Type Analysis

Demand for Extra Virgin Oil is Likely to Showcase Significant Growth Due to High Quality of Oil

BY type. the market is classified into extra virgin oil, virgin oil, pure/refined oil, and blend. The pure/refined oil segment held a considerable share of the market in 2023. The cosmetics and personal care industry particularly appreciates the pure/refined oil due to its high vitamin E content, affordability (as it is less expensive than the extra virgin and virgin oil), and emollient properties. Moreover, the current vogue of applying natural oils directly to the skin is likely to positively impact extra virgin oil sales. The demand for extra virgin oil is prominently increasing from the food sector due to the surety of quality. The extensive information available regarding extra virgin avocado fruit oil nutrition benefits is anticipated to drive the segment growth.

By Application Analysis

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Food and Beverages Segment to Grow at Fastest Pace Owing to Rising Popularity of Gourmet and Specialty Food Products

The food and beverage application of the product is anticipated to grow at the fastest CAGR in the coming years. The rising consumer inclination toward specialty products and increasing focus of the key players on incorporating such ingredients in their processed food items are predicted to support the steady growth of the segment. For instance, General Mills keto-friendly brand launched yogurt, which is high in fat, low in carbs and sugar, and has 12-15 gm of protein per serving. Their yogurts use avocado fruit oil to increase the fat content.

The cosmetics and personal care products segment is expected to lead the industry in terms of revenue. Even though the product has green color and low odor, it is compared very favorably with lanolin as it had good skin penetration, high vitamin E content, and exceptional keeping qualities. It also produces finer emulsions when used in skin lotions and creams. Therefore, cosmetics companies are inclined toward this ingredient to enhance their product quality. For instance, in September 2023, Blendily introduced its Actually Avocado soap in bar and liquid version. The newly launched Actually Avocado soaps are manufactured by saponified avocado oil, which helps to purify the skin.

REGIONAL INSIGHTS

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Avocado oil is well-known, with increasing consumption in North America and rising popularity in the rest of the world. The North America market stood at USD 307.71 million in 2023, and it is predicted to dominate the global market during the forecast period. The region’s dominance is attributed to growing interest among consumers about the product and its uses due to the product’s nutritional and technological characteristics. Avocado fruit oil used in cooking has some proven benefits due to its vitamin E content and high oleic fatty acid content. Henceforth, the increasing concerns for better health and rising interest in diverse dietary components, with particular attention to fat that has been correlated to various diseases, such as obesity and diabetes, are anticipated to support the steady growth of the regional market. In North America, Spectrum Organics Products, La Tourangelle, Inc., and Olivado USA are some of the crucial players operating in the avocado market and constantly focusing on expanding their product offerings. Furthermore, increasing avocado production in the country is likely to propel the industry expansion over the upcoming years. According to the United States Department of Agriculture, the U.S. produced approximately 149,600 tons of avocado in 2021.

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Asia Pacific is expected to grow at the highest CAGR in the foreseeable years, mainly due to the rising popularity of the product in China, Japan, and others. In recent years, China has started large-scale planting of avocado in Guangdong, Yunnan, and Fujian provinces. According to the government of China, in the next few years, China will increase its production capacity of avocado fruit oil due to the easy availability of raw materials. Furthermore, the rising demand for the product from other Asian countries, such as Japan and Malaysia, and the wide availability of the product in online and offline distribution channels are expected to drive the regional market.

Europe and South America are anticipated to grow at a significant pace due to the growing demand for the product from the food, cosmetics, and personal care industries. Technological advancement, product innovation, and rising awareness among customers regarding the benefits of the product are anticipated to impact the regional market growth positively. On the other hand, the Middle East & Africa is expected to witness slow growth in the market. Comparatively, limited product awareness and marketing are anticipated to restrict the regional market growth up to a certain extent regardless of the strong potential consumer base in this region.

List of Key Companies in Avocado Oil Market

Rigorous Innovations and Novel Product Launch to Aid Dominant Position in Market

Spectrum Organics Products, La Tourangelle, Inc., Olivado USA, and Grove Avocado Oil are some of the most active companies with an extensive range of premium products. These companies have spent significantly on market research, product innovation, packaging, and improving quality in terms of the product's functionality. For instance, in May 2021, Grove Avocado Oil introduced a new everyday oil. This new avocado oil’s smoke point is very high, which is a plus point for consumers as it can be used for high-heat cooking and is also great for stir-fry. Similarly, other companies have embraced a strategic partnership with relevant stakeholders to surge their consumer base and 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 January 2024, Chosen Foods, one of the leading American avocado oil brand, introduced its new 100% avocado sensual massage oil during the Valentine's Day period. This new product would available on the company’s website for a limited time period. 


• In October 2021, U.S.-based brand, Jackson's Honest, expanded its snack portfolio of sweet potato chips with new packaging. In addition to the company's original Sea Salt with Coconut Oil chips, the lineup contains three new flavors made with avocado oil: Spicy Tomatillo, Sea Salt, and Carolina BBQ.


• In August 2021, Austin, Texas-based Vital Farms introduced its newest product, 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, perfect for any cooking occasion.


• In April 2021, U.S.–based company Catania Oils launched a 750 ml Marconi Avocado fruit Oil that is available for private label. The product is a smaller size than a previously launched version of the product.


• In March 2021, New York-based brand Glow Recipe announced the launch of Avocado Ceramide Recovery Serum. This product can help to soothe the complexion and overhaul its moisture barrier. The two ingredients worth mentioning are avocado fruit oil and ceramides, both of which offer relief and TLC. The product is available for purchase through the brand's website and Sephora.com.

REPORT COVERAGE

An Infographic Representation of Avocado Oil Market

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The global avocado oil market report includes quantitative and qualitative insights into the global market. It also offers a complete analysis of the demand, market size, and growth rates for all possible market segments. Numerous key insights presented in the report are an overview of the parent market, competitive landscape, market opportunity, and recent industry developments such as base expansion, regulatory scenario in critical countries, and key industry trends.

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