Avocado oil, extracted from the fleshy avocado fruit, is increasingly being used in cosmetics, pharmaceuticals and food applications due to its numerous health benefits. Avocado oil contains vitamins, minerals and essential fatty acids that provide hydration and nourishment to hair and skin. It is a popular ingredient in moisturizers, hair masks and massage oils. In the food industry, avocado oil is used as a healthier cooking oil alternative to vegetable or olive oil. The rising preference for natural and plant-based ingredients is driving the use of avocado oil in snacks, salads and processed foods.
The global Avocado Oil Market is estimated to be valued at Us$ 1660.15 Mn or 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 Dynamics:
Growing health consciousness among consumers is a key driver for the avocado oil market. Avocado oil contains mono- and polyunsaturated fats that are beneficial for heart health. It also contains antioxidants like vitamin E, vitamin K and carotenoids which protect cells from damage. The health benefits of avocado oil such as lowering bad cholesterol and reducing inflammation have raised consumer awareness. The nutritional profile and culinary uses of avocado oil are positioning it as a healthier substitute for other cooking oils. This is fueling the incorporation of avocado oil across various food applications and witnessing its demand grow at a brisk pace. Additionally, the product isavailable in segmented form such as extra-virgin, virgin, pure etc. thus offering varied uses as per requirement which further propels the market growth over the forecast period.
SWOT Analysis
Strength: Avocado oil contains heart-healthy monounsaturated fats that can lower cholesterol levels and reduce risk of heart disease when consumed in moderation. It also contains vitamins and minerals that are beneficial for skin and hair. Avocado oil has a high smoke point of about 520°F, making it suitable for sauteing or baking at high temperatures without burning or losing nutritional value.
Weakness: Avocado oil is more expensive than other cooking oils like canola or vegetable oil. As avocados are grown in limited regions globally, the supply of avocado oil is restricted leading to higher prices. The strong flavor and taste of avocado oil is not preferred by some customers, especially for uses other than cooking.
Opportunity: Increasing health awareness among consumers is driving the demand for healthy plant-based oils with nutritional benefits. Avocado oil meets this demand due to its high monounsaturated fat content and various vitamins/minerals. The millennial population prefers natural products and is willing to pay more for healthy ingredients, representing an opportunity. There is potential to increase avocado oil production and lower costs through scaling orchards in newer regions.
Threats: Changes in climate and rainfall patterns can impact avocado production in key growing regions, threatening the availability of avocado fruit for oil extraction. Pests and diseases may damage avocado crops. Price volatility of raw avocado may increase production costs. Competition from other healthy plant-based oils can limit market share growth of avocado oil.
Key Takeaways
The Global Avocado Oil Market Demand is expected to witness high growth over the forecast period of 2023 to 2030, expanding at a CAGR of 5.7% to reach a value of US$ 1,660.15 million by 2024.
Regional analysis:
North America currently dominates the avocado oil market, accounting for over 35% of global demand in 2022. Mexico is the largest producer as well as consumer of avocados and avocado oil. However, Asia Pacific region is expected to be the fastest growing market through 2030 with countries like India seeing rising urbanization and health awareness.
Key players:
Key players operating in the avocado oil market are Cargill, Incorporated, Avocado Global Pte Ltd., Olivado USA, Spectrum Organics Products LLC, Sesajal S.A de C.V., Bella Vado, Inc., Chosen Foods LLC, and Mevi Avocado, Inc. Cargill captures the largest market share being a global leader in edible oils and fats.
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