Avocado oil is obtained from the fleshy fruit of Persea Americana plant through various extraction processes such as cold pressing, extraction, and others. Avocado oil contains beneficial monounsaturated fats like oleic acid that are considered heart-healthy. It also contains antioxidants, minerals, and vitamins A, D, E, and K that are important for a healthy body. The growing popularity of avocado oil is attributed to the various health benefits and nutritional value associated with its consumption.
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 Opportunity:
The health benefits associated with avocado oil consumption has led to a growing market opportunity. Avocado oil helps improve heart health due to presence of healthy fats that reduces bad cholesterol and inflammation. It also provides skin and hair benefits due to hydrating properties. Further, avocado oil aids in weight loss efforts due to presence of nutrients and fats that keeps one full for long. The increasing consumer preference for healthy edible oils and awareness about avocado oil's versatility and nutritional value has boosted its demand globally. Consumers are willing to pay premium prices for cold-pressed avocado oil due to their focus on wellness, nutrition and weight management which is driving market growth.
Porter's Analysis
Threat of new entrants: Medium threat as avocado oil processing requires large capital investment and the industry is dominated by few global players. However, new small brands can enter regional markets.
Bargaining power of buyers: Moderate bargaining power as avocado oil is substitutable with olive oil. Buyers can switch to alternative oils based on price.
Bargaining power of suppliers: Low bargaining power for suppliers as raw materials are commodities and top producers like Mexico control large avocado supply.
Threat of new substitutes: High threat from substitutes like olive oil. Avocado oil needs to compete on health benefits over substitutes.
Competitive rivalry: Strong competition as top players focus on new product launches, branding and expanding globally. Maintaining quality and price competitiveness is crucial.
SWOT Analysis
Strength: High monounsaturated fat content and nutritional profile promotes it as a healthy superfood oil.
Weaknesses: Seasonal supply of avocados leads to price volatility. Limited industrial use compared to other oils.
Opportunities: Growing health and wellness trends boost demand. New application developments in personal care and cosmetics expand market.
Threats: Climate change impact on avocado production. Competition from other trending oils limits market share expansion.
Key Takeaways
The Global Avocado Oil Market Demand is expected to witness high growth over the forecast period driven by increased health awareness.
The U.S. dominates currently due to large domestic production in counties like California. Mexico is also a major supplier globally.
Key players operating in the avocado oil market are Cargill Incorporpo, Olivado Group, Sesajal SA de CV, Chosen Foods LLC, Grupo Industrial Batellero SA de CV, The Village Press, Bella Vado, Tron Hermanos SA de CV, and Bio Planete. They focus on expanding production capacities and distribution networks globally to tap the growing demand.
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