The avocado oil market was valued at US$ 669.5Million in 2018 and is projected to reach US$ 1,452.2Millionby2027; it is expected to grow at a CAGR of 9.1% from 2019 to 2027.
Avocado oil is edible product used in various food recipes, salad dressings, bakery items, and sweet and savory snacks. It is also used in personal care and cosmetics products owing to its moisturizing and regenerative properties. The oil has high monounsaturated fat and low saturated fat content, and it is free of cholesterol. Avocado oil is highly preferred by people with diabetes as regular consumption of this oil helps lower low-density lipid (LDL), i.e., bad cholesterol, levels. Avocado oil is high in vitamin E and potassium, which keep the blood vessels healthy by eliminating free radicals. The consumption of food prepared using avocado oil also alters the levels of essential fatty oils in kidneys. The oil also exhibits anti-inflammatory properties that help to prevent damage to arterial walls, reducing the risk of heart disease caused by plaque build-up. Avocado oil contains chlorophyll that helps naturally remove heavy metals such as lead and mercury from the kidneys, liver, brain, and other organs.
The avocado oil market, based on type, is segmented into extra virgin oil, virgin, refined and blends. In 2018, the extra virgin segment dominated the avocado oil Market. Extra virgin avocado oil is extensively used in the cosmetics and food & beverages industries. Upsurge in demand for trendy cosmetics such as nutricosmetics containing extra virgin avocado oil as an ingredient provides remarkable growth opportunities for the market players. The consumption of extra virgin avocado oil is considerably high in developed countries such as the US, Canada, and Germany, while the demand is projected to surge in emerging countries such as China, Brazil, and India during the forecast period.
Impact Assessment of COVID-19
The COVID-19 outbreak has been affecting economies and industries in various countries, including the US, India, Brazil, Russia, Italy, the UK, Iran, Spain, and China. Food and beverages is one the world’s major industries suffering serious disruptions in the form of supply chain breaks, events cancellations, and office shutdowns as a result of the lockdowns imposed in various countries to contain the disease spread. China is the global manufacturing hub and is the largest raw material supplier for various industries; it is also one of the worst-affected countries by the COVID-19 pandemic. The lockdown of various plants and factories in China is affecting the global supply chains and adversely impacting the manufacturing and sales of various chemical and materials. These factors are likely to restrain the growth of various markets related to the chemicals and materials industry in the next few financial quarters.
The avocado oil market is broadly segmented into North America, Europe, Asia Pacific (APAC), South America (SAM), and the Middle East and Africa (MEA). In 2018, North America held the largest share of the market, followed by Asia Pacific. The largest share of the North America region is attributed to the highly evolved retail structure and increased adoption of avocado oil due to the rise in prevalence of obesity and heart diseases. Additionally, upsurge in the expenditure of consumers on dietary food and cosmetics add to the popularity of avocado oil in this region. The North America Avocado Oil Market is characterized by the presence of many small and large scale players in the market, such as Avocado Health Limited, LA Tourangelle, Inc., and Madana Inc., among others.
Aconcagua Oil & Extract S.A.; Avocado Health Limited; BELLA VADO, INC.; CROFTS LTD; La Tourangelle, Inc.; Madana Inc.; Mevi Avocados, Inc.; Olivado USA; Sesajal S.A. de C.V.; and Spectrum Organics Products, LLC (Hain Celestial Group, Inc.) are among the players operating in the global avocado oil market.
The avocado oil market size has been derived in accordance with to both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants typically involved in this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the avocado oil market.