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Research Reports


Growing awareness about health benefits of avocado oil over conventional cooking oils will continue to push the demand in the near future. Moreover, relatively higher smoking point of avocado oil also promises positive prospects in the next few years. In the wake of rapid consumer shift to naturally-sourced and organically derived beauty and personal care products, leading personal care product manufacturers have been focusing on the incorporation of avocado oil as a bioactive component in cosmetic products. This has been spotted as an excellent opportunity for avocado oil manufacturers. By the end of 2026, the global avocado oil market is believed to reach the value in excess of US$ 1. 2 billion. PMR estimates promising expansion of the global sales revenue at the CAGR of 5.2% over 2018-2026.

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Extra Virgin to Remain the Most Favored Avocado Oil Grade; Food Processing to Continue Maximum Consumption of Avocado Oil

The US to Enable North American Avocado Oil Market to Outgrow the Dominating Latin American Region

Latin America is currently the largest revenue shareholder in the global avocado oil market with over 25% share of the total market value – primarily driven by sizable consumption recorded by food processors. However, North American market will possibly take over Latin America’s avocado oil market through 2026 – in terms of growth rate. This growth will be spearheaded by the US, as decent expansion of the Hispanic population has been registered in the US over the past few years, which is considered to be the top ethnic consumer of avocado, avocado oil, and other related products. While extensive launch of avocado product lines will continue to dominate developed regional markets, PMR expects developing economies to witness fostering demand for processed avocado product lines in the next few years.

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Opportunities in Processed Convenience F&B Products to Appeal to Producers and Manufacturers

A slew of growth opportunities are likely to be presented by the convenience products category, specifically targeting on-the-go food patterns. Although market players have been targeting on-the-go food and beverage products by adopting product positioning with health benefits as a differentiating strategy, they are presumed to continue facing a few challenges such as concerns about the nutritional content of final products post incorporation of ingredients such as avocado oil.

Regulated Raw Material Supply Scenario to Remain Paramount for Avocado Oil Market Stakeholders

In an effort to achieve regulated management of final retail pricing, leading producers in the market are focusing on downstream integration of the value chain. To overcome the volatility of the off-season supply and ensure adequate raw material supply in all seasons, manufacturers are expected to invest more efforts and resources in imports. Similarly, to achieve regulated supply, key suppliers and avocado oil producers active in the avocado oil market are prioritizing long-term agreements with leading raw material suppliers.

Moreover, manufacturers are also considering enhancement of the base raw material supply through mutual partnerships with domestic avocado farmers. A number of producers and suppliers are also initiating contract-based avocado production. A large number of leading suppliers are also dedicating avocado ripening houses for processing of mass volumes of avocado oil, with an objective to cater to bolstering demand in the market.

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