Avocados Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Avocados Market  is segmented By Type (Hass, Fuerte, Ettinger, Others), By Form (Raw, Processed), By Nature (Organic, Conventional), By End User (Food & Beverages Industry, Retail Industry, Cosmetics & Personal Care, Others), By Region (North America, South America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Avocados Market Overview

The global avocados market is estimated to reach at high CAGR  during the forecast period (2024-2031).

Avocado is considered one of the key tropical fruits because, apart from high levels of protein, potassium and unsaturated fatty acids, it contains fat-soluble vitamins that are comparatively less available in other fruits. Avocados contain vitamins A, B, C, E, and K, including 25 essential nutrients. It also contains phytochemicals, like beta-sitosterol and antioxidants, like lycopene and beta-carotene. The essential nutrients are increasing the demand for the fruit, globally, and therefore acts as a major driving force behind the growth of the avocado market. Also, avocado pulp contains variable oil content and is commonly used in the cosmetics industries as well as in the manufacture of olive oil-like commercial oils.

Avocados Market Scope

To Know More Insights - Download Sample

Avocados Market Dynamics

Emerging awareness of health benefits provided by avocados is driving the market

As the world is digitizing, people are getting more acquainted with social media platform, which is serving as a platform for promotions. The rising awareness in people through online platforms, regarding benefits of avocados, which is especially not much known to the countries like India, Pakistan, Sri Lanka has raised the demand of avocados in such countries. Promotions of various avocado skincare products from is especially popular among the millennial. In June 2019, the Hass Avocado Board (HAB) partnered with Livestrong.com to promote the health benefits of eating fresh avocado on a daily basis. Tactics focused around a month-long avocado challenge involving a potential online audience of over 32 million health-focused customers, where thousands of dedicated members of the Livestrong.com Facebook community will be encouraged to enjoy an avocado community. Such initiatives are letting people know more about avocados which is the key driver for the growth of avocados market.

Moreover, the demand for avocados is increasing globally due to their health benefits as it increases vision, prevents heart-related diseases, and helps in improving digestion. The increased demand across the globe has resulted in increased production. According to FAOSTAT, avocado production was 5.7 million metric ton in 2016, which has increased by 12.7% and reached 7.1 million metric ton in 2019. Furthermore, the expanding food retail business coupled with the growing product launches of avocado-based products such as dips in fast food retailing giants and also increase demand for avocado usage in continental cuisines and other cuisines by restaurant chains is further anticipated to boost the demand for avocados over the forecast period.

Avocados Market Segmentation Analysis

Food industry is the primary user of avocados

Based on end user segmentation, the food industry is the proliferating segment of the market. It is because avocado has proven to be a nutritious fruit and is being included in diets widely. Avocado has a balanced lipid structure. It is rich in minerals, vitamin E and phytochemicals that promote health. This is the reason avocado are being included in most food products. Compared to other fruits, avocado stands out at the level of potassium (339mg 100g-1), which controls muscle activity and protects the body from cardiovascular diseases. It is also a source of glutathione, a vital element that acts on potentially carcinogenic compounds. All these health benefits provided by avocado has led to its huge demand in the food industry.

Avocados Market Geographical Share

North America is dominating the avocados market

Avocado is mainly produced in California, Florida, and Hawaii in the United States. California accounts for 95.0% of the production in the United States. The California Hass avocado on average weighs about six ounces (170 grams). Cold-hardy varieties of avocado are grown in the Gainesville region of Florida. These can be grown only in tropical or sub-tropical climates, as avocado trees cannot tolerate freezing temperatures. The avocado production in the United States is heavily impacted by weather conditions and hence, shows yearly variations. Avocado has a large number of varieties, and Hass is the most popular one available in the United States. Few varieties of avocados are also grown during the winter season. Avocado consumption will keep increasing steadily with the rise of the American population in the USA. Mexico is also one of the largest producers of avocados accounting for 25% of the world avocados production while most of them are for domestic purpose which makes it the third largest exporter of avocados. In 2019, exports of Mexican avocado amounted to almost 2.8 billion US dollars. These two countries increased the revenue of North American avocados market and hence making it the largest shareholder of the market. Moreover, in a December 2020 interview with Fresh Plaza, the Managing Director of Camposol International, noted that the per capita consumption of avocados in North America has risen from 1.05 to 3.71 kilos between 2003 and 2020 and yet, only about 50% of North American consume avocados.

On the other hand, avocado market in Asia Pacific is expected to spearhead the growth rate of the global market. Asia-Pacific avocado market recorded growth in sales value, which increased steadily to approximately USD 1.4 billion over the last seven years. This trend is generally in line with the global trend of rising avocado consumption. The growth of the Asian-Pacific market is facilitated by the growing popularity of Western cuisine in major cities in China and other Asian countries. Indonesia (462K tonnes) remains the largest avocado-consuming country in Asia-Pacific, accounting for 52% of total volume. In value terms, Indonesia ($404M), Australia ($345M), and China ($224M) constituted the countries with the highest levels of market value in 2019, together accounting for 69% of the total market.

Avocados Market Companies and Competitive Landscape

The global avocados market is highly fragmented with large number of players providing various avocado products. The market competition is intense owing to increasing number of avocado growers. Most of the leading avocado supplying companies including Del Rey Avocado Company, Inc., Calavo, Growers, Fresh Del Monte Produce Inc., Mission Produce Inc., Avohass, JBR Avocados, Propal, West Pak avocado, Inc, McDaniel Fruit Co., Henry Avocado Corporation have entered in to the avocados market to cater the increasing market demand. Several players in the food market are exploring new products with the punch of avocado to open fresh avenues for business. These aspects are predicted to drive growth in the global avocado market. Further, research has proved benefits of using avocado on skin care products. Players in the cosmetic industry are introducing skin care products with avocado as a key ingredient. Positive results in terms of business hint at stable growth potential in this new arena.

COVID-19 Impact: Pandemic had a negative impact on global avocados market

Amid an extraordinarily rapid decline in global economic activity and international transport, world supply and demand for avocado have experienced COVID-19-related disruptions and contractions through several channels of transmission. On the supply side, the adverse effects of the physical distancing measures have tended to be more immediate for the relatively labor-intensive production and trade of avocado. Given their high perishability, avocados require timely and well-coordinated harvesting and post-harvest handling, as well as uninterrupted cold chains. Delays in supply chains are particularly troublesome for avocados due to the occurrence of shrinkage in transport during the lockdown, which not only affected product quality but also reduced the weight and value of shipments received by importing countries.

Seasonally lower supplies in Mexico, the world's leading avocado exporter, which reported a 1% drop in exports over this time, had a moderating impact on global shipment growth. The imports of avocados from the United States of America, the major global importer, decreased by approximately 3.8 percent to 540,000 tons in 2020 compared to the period January to June 2019. The COVID crisis has had a significant impact on imports to China. In 2020, according to official data from China Customs, avocado imports in the first nine months were over 18K tons, down 23.8% from 2019.