Extra Virgin Avocado Oil Market Expected to Reach $527.1 Million by 2026

According to a new report published by Allied Market Research, titled, "Extra Virgin Avocado Oil Market by Application and Distribution Channel: Opportunity Analysis and Industry Forecast, 2019–2026," the extra virgin avocado oil market size was valued at $373.0 million in 2018, and is estimated to reach $527.1 million by 2026, registering a CAGR of 4.40% from 2019 to 2026. In 2018, the food & beverage segment accounted for more than half of the share and is expected to grow at a CAGR of 4.40% throughout the forecast period. North America is one of the prominent regions in the market that accounted for a sizeable share of the total market in 2018.  

Extra virgin avocado oil is extracted from pressing avocados and then filtering it, which has strong avocado aroma, with a green color. The extra virgin avocado oil is widely used in the cosmetics and food & beverage industries. The extra virgin avocado oil is extracted from two types of avocado oil, which includes Hass and Fuerte. This extra virgin oil retains the flavor and color characteristics of the fruit flesh after extraction. This oil is extracted from the fruit that contains a high amount of fiber, potassium, healthy fats, and good guacamole making it a healthier option as compare with regular oils. Moreover, it is rich in vitamin A, D, E, C, omega 3 fatty acid, and oleic acid. This oil is used in hair & skin care solutions and cooking oil due to its proven health benefits.

One of the major factors that are responsible to drive the growth of the extra virgin avocado oil market are changes in lifestyle across the globe coupled with increase in awareness about health. People are searching for healthy alternatives to combat health issues such as heart disease and obesity. This oil has gained popularity among these people because of its health benefits. Thus, driving the growth of the market. Furthermore, the high smoke point of the oil makes it ideal for cooking, which increases the demand for extra virgin avocado oil and is also responsible to drive the growth of the market. However, the cost of extra virgin avocado oil is high especially in the developing countries such as China and India, which is responsible to restrict its adoption. Moreover, there are many edible oils available in the market, which are a combination of regular and flavored avocado oils along with the same characteristics such as health benefits and smoking point which in turn is anticipated to restrain the growth of the global avocado oil market. There are many competitive products of extra virgin avocado oil available at low cost in the market. These include extra virgin hemp oil, olive oil, chia seed oil, and others. This limits the growth of the global extra virgin avocado oil market. The rise in awareness for extra virgin avocado oil in untapped region and growth in trading relations, especially with Latin American countries, act as an opportunity for the growth of the global extra virgin avocado oil market.

The global extra virgin avocado oil market is segmented into application, distribution channel, and region. By application, the market is bifurcated into food & beverage and cosmetics. By distribution channel, the market is fragmented into supermarkets/hypermarkets, beauty stores, and online store. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

According to the extra virgin avocado oil market analysis in 2018, the food & beverage segment generated the highest revenue and is expected to remain dominant throughout the forecast period. This is attributed to increase in adoption of extra virgin avocado oil in the food & beverage industry due to its high smoking point and health benefits. However, the cosmetics segment is expected to grow at the highest CAGR throughout the forecast period, due to increase in adoption of avocado oil as ingredient in the cosmetic industries.

In 2018, supermarket/hypermarket segment was the most prominent segment, accounting for maximum share in the global market, owing to the availability of cooking oil and cosmetics at the same place. However, the online segment is expected to witness the highest growth, due to increase in the penetration of internet in the developed as well as the emerging countries.

By on region, North America accounted for the maximum share in the global market in 2018 and is expected to continue this trend during the forecast period. This is attributed due to higher expenditure of consumers on healthy cooking oil and inclination toward cosmetics with natural ingredients. However, Mexico is expected to grow with the highest CAGR throughout the forecast period, owing to the technological development in avocado harvesting, and awareness among consumer regarding benefits associated with the virgin oil products.

Key Findings of the Study:

• The extra virgin avocado oil market was valued at $373.0 million in 2018 and is estimated to reach $527.1 million by 2026, growing at a CAGR of 4.40% throughout the forecast period.
• By application, the food & beverage segment is expected to witness fastest growth, registering a CAGR of 4.40% during the forecast period.
• In 2018, depending on distribution channel, the supermarkets/hypermarkets segment held the highest share, accounting for more than half of the global market share.
• U.S. was the most prominent market in the North America region in 2018 and is expected to grow at a significant CAGR throughout the forecast period.
• North America was the dominant region in 2018, accounting for more the one-third of the global extra virgin avocado oil market share.

The key players profiled in this report include Aceitera Mevi México SA de CV, Aconcagua Oil & Extract SA, Avocado Oil New Zealand Ltd. (Grove Avocado Oil), Bella Vado, Inc., CalPure Foods, Inc., Crofts Ltd., Mt. Kenya Fresh Avocados, Nobel Foods, Olivado Ltd., and Westfalia Fruit (Pty) Ltd.