Avocado oil is a plant-based oil made by cold pressing the fat-rich pulp of the avocado fruit. It has a variety of health benefits due to its rich nutritional profile containing monounsaturated fats and vitamins. Avocado oil contains phytosterols which aid in reducing bad cholesterol. It is emerging as a healthier alternative to conventional oils high in saturated fat as trend of healthy eating increases. Avocado oil has a high smoke point making it suitable for a variety of cooking purposes.
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 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
Rising health and wellness trends are driving demand for nutritional oils like avocado oil. Owing to increased awareness regarding benefits, avocado oil is finding wider application in cosmetics and personal care products. Its fatty acid content makes it a good emollient for skin and hair care. Increasing acceptance of superfood ingredients in beauty items is fueling adoption of avocado oil. Avocado oil manufacturers can leverage this opportunity by marketing their products as a nutritional solution for both cooking and cosmetic needs to tap into growing wellness-focused demographics.
Porter's Analysis
Threat of new entrants: New entrants face high capital requirements to build processing facilities and establish distribution channels. Regulations around safety and quality further increase barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to presence of many suppliers. However, demand for avocado oil is steadily rising benefitting suppliers.
Bargaining power of suppliers: Suppliers have moderate-high bargaining power as avocado production is concentrated in few countries like Mexico and Peru. Fluctuations in supply affect prices.
Threat of new substitutes: Substitutes like olive oil pose threat but avocado oil is gaining popularity for its distinct taste and nutritional profile.
Competitive rivalry: Intense due to increasing number of producers globally and price competition. Companies compete on quality, taste, supply continuity and new product innovations.
SWOT Analysis
Strength: High nutritional value with vitamins A, D, E and K. Growing popularity among health conscious consumers.
Weakness: Susceptible to climate change impacting supplies and prices. Requirement of large tracts of land for commercial cultivation.
Opportunity: Increasing usage in cosmetics, personal care and pharmacy industries apart from food applications. New product launches catering to on-the-go consumers.
Threats: Price volatility owing to concentrated production regions vulnerable to weather events. Competition from olive oil and other substitutes.
Key Takeaways
The Global Avocado Oil Market Share is expected to witness high growth over the forecast period supported by rising health consciousness. is estimated to be valued at US$ 1660.15 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030.
The Asia Pacific region is projected to be the fastest growing market for avocado oil owing to population growth, rising incomes and westernization of diets in countries like China and India.
Regional analysis comprises Latin America, particularly Mexico, dominates global avocado oil production accounting for over 70% share currently. Peru is another major producer and exporter. Growth in the Asia Pacific region is anticipated to be driven by countries like China, India and ASEAN nations.
Key players operating in the avocado oil market are 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, and Storino's Quality Products. Key players are focused on capacity expansions and new product launches with innovative packaging catering to on-the-go consumption.
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https://www.newswirestats.com/avocado-oil-market-size-share-growth-outlook-2023/
