Steadily Growing Demand For Value-Added Food Products Has Augured Well For Sales Of Avocado Oil Extract

Tier 3 Players Show Stronger Foothold in Avocado Extract Market
Tier 3 players in the avocado extract market have a significant penetration in domestic markets.

Avocado extract products manufactured by these players are preferred across multiple applications, owing to end-user sentiment to buy locally produced avocado extract products such as oil, powder and puree.

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Olivado Ltd., Indigo Herbs, Markon and other players are categorized as Tier 3 companies whose focus remains differentiated food offerings.

For Instance, Olivado Ltd. is a leading provider of extra virgin cold pressed avocado oil whereas Indigo Herbs delivers organic avocado powder.

With their unique approach of market sustenance, Tier 3 players hold over half the volume share in the avocado extract market.

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Notable Highlights

In September 2018, Australia’s biggest avocado farm owner, Simpson Farms announced the sale of its farm business. The company annual revenues were to the tune of nearly US$ 75 million through the sale of over 1.5 million avocados. The farm that produces these avocados is expected to be sold for between US$ 250 to 300 million.
In February 2018, Costa Group announced the acquisition of Coastal Avocados farms in New South Wales. The acquisition was made in partnership with Macquarie Agricultural Funds Management who will own the forms and Costa will operate them. The acquisition is aimed at Costa’s goal to achieve 1,000 hectares and 52-week supply annually.
In October 2018, Mexico avocado growers went on 16 days strike in protest of low field prices and other issues. Due to the strike, weekly shipments plummeted significantly from 40 million in the week of 28 October to 4.8 million two weeks later. While 78% of the Hass avocados were shipped in the U.S. from Mexico in 2017, the effect of the shortage reached U.S. restaurants forcing owners to remove avocados and guacamole from menus.
In the second quarter of 2018, avocado prices witnessed a dramatic fall in Europe. The prices of avocado dropped to one third within a year span, according to the Ministry of Agriculture, Fisheries and Food (MAPAMA) in Spain. Despite the increased annual consumption capacity, increased production in Peru and South Africa, prominent avocado importers in Europe has led to market saturation and downfall in avocado prices.
In Australia, despite the increased production capacity, higher prices of avocados continue amid exponentially rising demand. The year 2018 remained a high priced avocado year for the avocado industry – the scenario has led the Avocado Australia and Hort Innovation to work towards enhancing domestic production as well as expand domestic and international markets.

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Supply Chain Challenges Impede Avocado Stockpiling
Avocado production is concentrated in Mexico which accounts for 35-45% of the global avocado supply. Other prominent producers include the Dominican Republic, Peru, Colombia, and Indonesia.

Demand for avocado has skyrocketed in the past half a decade which has created volatility in the avocado market, particularly lower field prices.

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Avocado Extract Market – Segmentation
The avocado extract market analysis included in the report is based on the thorough understanding of the avocado industry landscape.

Based on a thorough analysis, the avocado extract market is segmented based on extract type, source and application.

Based on extract type, the avocado extract market is segmented in oil, powder and puree. Based on source, the avocado extract market is segmented in hass, Fuertes and other sources.

Among different applications of the avocado extract, the market study covers food & beverage, cosmetics, dietary supplements and pharmaceuticals.

Avocado Extract Market – Research Methodology
A robust research methodology followed during the course of the avocado extract market study is discussed in this section. Different approaches used to carry out the research of avocado extract market is covered in this section.

The primary and secondary research approaches used to perform avocado extract market analysis is explained thoroughly in this section.

Primary research of the avocado extract market includes interviews with industry savants and domain-specific analysts.

Secondary research of the avocado extract market includes an in-depth study of published data, company press releases and other industry validated information.

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