Avocado and Avocado Derivatives Market Research Report and Outlook by 2028

The avocado and its derivatives market is anticipated to grow significantly, reaching a value of approximately US$ 9,963.37 million by 2028, up from US$ 7,368.65 million in 2022. This growth represents a compound annual growth rate (CAGR) of 5.2% from 2022 to 2028.

The increasing seasonal demand and heightened awareness of the health benefits associated with avocados are driving the market for avocados and their derivatives. As consumers become more health-conscious, the recognition of avocados as a superfood, rich in omega fatty acids and various essential nutrients, has contributed to the global expansion of the avocado and avocado derivatives market. Avocados are among the most nutrient-rich foods available, containing fiber, folate, potassium, vitamin E, and magnesium. Additionally, the growth of the food retail sector and the introduction of avocado-based products, such as dips, by major fast-food chains have further increased the demand for avocados in various culinary applications.

The market for avocados and their derivatives is categorized by application into food & beverages, pharmaceuticals & nutraceuticals, personal care, and other sectors. In 2020, the food & beverages segment held the largest market share. However, the personal care segment is projected to experience the highest CAGR during the forecast period.

A report from the European Fresh Produce Association (EFPA) published in May 2020 indicated that approximately 35 million tons of fresh fruits and vegetables are distributed annually in Europe through wholesalers, with around 25 million tons directed towards the high-value foodservice sector. This sector includes numerous small and medium enterprises (SMEs) as well as larger corporations, all of which are situated in wholesale markets to supply local customers, including grocery stores, street vendors, and restaurants. The COVID-19 pandemic caused significant disruptions in these businesses, leading to a decline in wholesale activities, including those related to avocados. Nevertheless, the sector has adapted to the new operating conditions, and there has been a notable shift in consumer behavior during the pandemic. The demand for innovative food and beverage products with specific nutritional profiles, as well as organic, gluten-free, and non-GMO options, has surged. The reopening of markets and retail channels has boosted the sales of avocados and their derivatives, further supported by the rise in online sales.

Regionally, the avocado and avocado derivatives market is divided into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. In 2022, Europe dominated the market share, while the Asia Pacific region is expected to exhibit the fastest CAGR during the forecast period. The European cosmetics industry is increasingly seeking natural ingredients, creating opportunities for exporters of avocado oil from developing nations. Avocado oil is recognized for its functional and active properties, being a heart-healthy oil high in oleic acid, which enhances its use in various formulations. Consequently, the demand for avocado oil in Europe is projected to continue its upward trend in the coming years.

Moreover, avocado oil is rich in vitamins A, E, and D, making it a popular ingredient in cosmetics and personal care products due to its beneficial fatty acid content. It provides moisture, protects the skin from harmful UV rays, and promotes collagen metabolism. This growing application of avocados in skincare and haircare is significantly contributing to the expansion of the avocado and avocado derivatives market in Europe.

In North America, avocados are recognized as a healthy dietary option and a rich source of beneficial monounsaturated fats. A medium-sized avocado contains about 15% of the FDA's recommended daily intake of saturated fat and boasts 60% more potassium than bananas. They are also abundant in vitamins B, E, K, and folate, making them a suitable choice for diabetic diets. With the rising incidence of diabetes in the United States, avocados present a nutritious option for those managing their blood sugar levels.

According to a report from the Ag Marketing Resource Center in August 2021, avocado consumption in the U.S. has shown a generally increasing trend since 1970, with per capita consumption rising from 2.21 pounds in 2000 to 7.81 pounds in 2019. The value of U.S. avocado production reached US$ 426 million in 2020, with a total production of 206,610 tons and approximately 52,720 acres dedicated to avocado cultivation.

Avocados can be consumed whole or used in various culinary applications, including salads, ice cream flavoring, and as sandwich fillings or quick dessert ingredients. In North America, they are often blended into milkshakes and occasionally incorporated into ice cream. Additionally, avocados are commonly served with white rice. The fruit is also processed for avocado oil, and various parts of the avocado plant have medicinal uses. For instance, boiled avocado leaves are believed to alleviate diarrhea, while crushed seeds can serve as a remedy for toothaches. These factors are expected to further propel the growth of the avocado and avocado derivatives market in the region.

Key players in the avocado and avocado derivatives market include Westfalia Fruit Pty. Ltd., Salud Foodgroup Europe BV, Exportadora Propal S.A., Berje Inc., Lemonconcentrate SLU, Avocado Brasil Comercio de Alimentos Ltda., ConnOils, LLC, Mission Produce, Inc., Calao Growers, Inc., and Meridian Fruits SPR de RL de CV. These companies are actively engaged in launching new products and expanding their geographical reach to satisfy the increasing global consumer demand.

The overall size of the avocado and avocado derivatives market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and gain deeper analytical insights. Participants included industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants specializing in the avocado and avocado derivatives market.