New Trends of Avocado Oil Market with Worldwide Industry Analysis to 2027Avocado oil is a monounsaturated oil that is extracted from the pulp of the avocado fruit. It differs from most other cooking oils in the fact that it is directly taken from the fruit rather than the seed. Avocado fruit consists of about 30% oil and is majorly composed of oleic acid, an omega 9 fatty acid. Avocado oil boasts of a wide range of benefits that go beyond its role as a cooking oil to include skin and hair care solutions. Much of these benefits are centered on the fact that avocado oil has the highest concentration of vitamins (A, D and E), potassium and monounsaturated fats.
Market Dynamics of Avocado Oil Market:
Avocado oil market is influenced by its nutrient- rich composition and the positive perception among both consumers and health experts. Certain of avocado oils properties such as good fatty acid profile, an optimum level of antioxidants and a high smoke point also contribute to its growth. The nutrient rich composition is particularly useful with regard to the ever-increasing demand for natural and healthy foods. Some of the health benefits attributed to avocado include cholesterol control wherein an avocado-enriched diet has shown to reduce the bad or LDL cholesterol levels, control of Osteoarthritis and psoriasis. These uses make avocado oil particularly useful for people suffering from high blood pressure and other heart ailments. The fruit also has a low glycemic index, a metric of how quickly a food raises the blood sugar level, making it an attractive product for diabetics.
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The other major advantage of avocados is their year-round availability. Due to the growing trade relations among nations, particularly with the Latin American countries, avocados are available in almost all seasons. This fact presents major competitive advantage and helps in sustaining the demand.
A constraining factor in the avocado oil market is its price. The relative price of food products is an important variable in determining whether a food product will be purchased or not. Avocado oil is slightly on the costlier side and this presents problems particularly in the emerging markets.
Market Segmentation of Avocado Oil Market:
The avocado oil is segmented on the basis of varieties, type, application, distribution channel and region.
Avocado oil can be extracted from a wide variety of sources due to the presence of numerous varieties of avocados. The most used and cultivated avocados include Hass, Fuerte, Zutano, Bacon, Lamb Hass, Gwen, Pinkerton, and Reed. Fuerte, Zutano, and Bacon are often referred to as Mexican varieties owing to the region's export of these varieties. Hass remains the most popular type and occupies major market share in the US and global markets.
On the basis of type, avocado oil is of four types. These include extra- virgin oil, virgin, pure (refined) and blends. Extra virgin avocado oil is the highest quality product and is extracted from superior quality fruits at low temperatures. Extra-virgin implies that the oils are extracted at the first cold press and no chemical additives are used in the extraction process. The quality of fruit is not stressed upon in the pure and blend avocado oils. Pure or refined oils may contain added natural herbs and fruit extracts.
On the basis of application, the market is segmented into various segments including cooking, personal care products, medicinal products and others. Due to its high smoke point, avocado is an ideal oil for frying. A high smoke point indicates that the oil doesn’t let out smoke until boiled at very high temperatures. Avocado oils are also reported to help in the growth of hair and as such are used in various hair care products. Its positive impact on skin makes it an important ingredient in skin care products.
On the basis of distribution, hypermarkets/supermarkets remain the dominant segments. This is due to the fact that the major uses of avocado are centered on cooking. Beauty stores also offer significant product sales owing to the products use in various cosmetic and personal care products. Given the fact that many small-scale producers are entering the market, online sales represent a growing channel with low entry barriers.
Regional Outlook of Avocado Oil Market:
The demand for avocado oil is high in the developed regions, areas where price and awareness are not much of a concern. The market has witnessed a rebound in the US owing to increasing promotion of avocado health benefits. The EU represents an important market for avocado oil, with Germany occupying the dominant share. Certain Asian countries such as Malaysia, Japan, and South Korea are also major demand centers.
On the production side, Latin America dominates the avocado oil market. Mexico, Peru, Chile, Dominican Republic, Colombia, and Brazil are major avocado producing regions in the world. In the Asia region, Indonesia is a major producer. Apart from these regions, the US is also a major producer of avocados and avocado oil. In the US, avocado production is mainly concentrated in the state of California.
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Key Market Players in Avocado Oil Market:
Some of the key players in the avocado oil market include Olivado, Sesajal, Yasin, Grupo Industrial Batellero, The Village Press, Tron Hermanos, etc.
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