Extra Virgin Avocado Oil Market

Market Overview

The global extra virgin avocado oil market was valued at USD 578.34 million in 2022. It is estimated to reach USD 962.33 billion by 2031, growing at a CAGR of 5.82% during the forecast period (2023–2031). A high smoking point is the benefit of extra virgin avocado oil, which enhances consumers' adoption, and the rise in adoption of extra virgin avocado oil in the cosmetic industry spurs market growth.

The pulp of an avocado is used to obtain avocado oil, a natural oil. Oleic acid, an omega-9 monounsaturated fatty acid, is present in avocado oil in amounts of about 70%, making it good for the heart. Avocado has nice Flavors, a rich texture, and a lot of fiber and potassium. Due to its health advantages, many avocado oil's consumer bases are health-conscious, particularly those dealing with obesity and cardiac issues. Avocado oil is widely used in medicinal and cosmetic products and the food and beverage industries. It maintains the skin's radiance and assists in minimizing blemishes, dry skin, wrinkles, and acne via hydrating, antioxidant, emollient, and toning effects.

Currently, the avocado oil market is expanding at a healthy rate. The market has been primarily stimulated by increasing knowledge of avocado oil's nutritional and health advantages. In addition, it is anticipated that the demand for healthy oils like avocado oil will rise due to the rising prevalence of various lifestyle conditions, including diabetes, obesity, cardiovascular disorders, etc., caused by increased high-fat butter and oils. Additionally, the expanding demand for avocado oil from the healthcare sector will positively affect the market's expansion.

Market Dynamics

Global Extra Virgin Avocado Oil Market Drivers:

High Smoke Point of Extra Virgin Avocado Oil

The temperature at which oil begins to produce smoke is referred to as the oil's smoking point. Once the oil has reached its smoking point, it will burn its nutrients, changing the food item's flavor. Using oils with a low smoke point for deep frying destroys the food's nutrients and its Flavors, contributing to cardiovascular illnesses. The extra virgin avocado oil that is obtained by pressing avocados and then filtering the resulting liquid has a strong aroma of avocados and a high smoke point (about 250 degrees Celsius), both of which make it an excellent oil for frying and enable it to preserve the nutritious value of the food that is being fried. Therefore, a high smoking point is a benefit of extra virgin avocado oil, which enhances consumers' adoption.

Rise in Adoption of Extra Virgin Avocado Oil in the Cosmetic Industry

Avocado oil that is extra virgin has a variety of fatty acids, including palmitic acid, linoleic acid, oleic acid, and linolenic acid, in addition to other components that are excellent for the skin and hair. These compounds include minerals and vitamins A, C, D, and E. Additionally, avocado oil that is extra virgin contains antibacterial, antioxidant, and anti-inflammatory characteristics that are used in skin care moisturizers. These properties stimulate collagen production and effectively treat skin disorders such as skin redness, wrinkles, and psoriasis.

The demand for extra virgin avocados has surged among cosmetic makers due to the growing popularity of natural ingredients in cosmetic products. Two examples of this trend are the KANAI Avocado Oil Face Moisturizer and the Victoria Beauty Anti-Wrinkle Cream Avocado Oil Hyaluronic Acid Day/Night. Both of these products contain avocado oil.

Global Extra Virgin Avocado Oil Market Restraint:

High Cost of Extra Virgin Avocado Oil

The avocado fruit is only grown commercially in a handful of countries, including the United States of America, Mexico, New Zealand, and South Africa. The demand for avocado fruit is significantly higher than the supply of avocado fruit, significantly impacting the price of avocado fruits and products such as oil. Mexico is responsible for the vast bulk of the world's avocado production. During September through November, the harvesting season for avocados, there is a high chance of hurricanes, which has a detrimental impact on the overall production of avocados. The danger involved in harvesting avocados ultimately affects the production of avocado oil, which drives up the price of avocado oil relative to that of other oils and slows the market expansion.

Global Extra Virgin Avocado Oil Market Opportunities:

Rise In Adoption of Avocado Oil in Developing Economy

Consumers in emerging nations such as India, China, and Brazil are aware of the beneficial impacts that eating extra virgin avocado oil can have on their health due to this understanding. At an alarmingly rapid pace, the culture of the West is exerting a greater and greater impact on these nations. The key cause driving the trend toward utilizing extra virgin avocado oil as a cooking oil in these countries is the rise in the amount of money available for spending. This money may be spent on a variety of goods and services. Because of this, there is a potential for the market to expand as more avocado oil is used in the beauty industry and food and beverage industries in economies that are still rising.

Regional Analysis

North America Dominates the Global Market

Based on region, the global extra virgin avocado oil market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant global extra virgin avocado oil market shareholder and is estimated to exhibit a CAGR of 4.50% over the forecast period. As a result of people in North America adopting healthier eating practices, there has been an uptick in the quantity of avocado fruit and avocado oil that people in the region consume. People are more concerned about their health as a direct result of the rise in the number of people who are obese as well as other chronic diseases that are caused by unhealthy eating habits. They have begun adhering to specialized meal regimens that are centered on the concept of keeping a healthy body weight and composition.

Additionally, the food and beverage sector, as well as the cosmetics industry, both make frequent use of extra virgin avocado oil. Both industries have a high consumption rate. The United States and Canada both use a large percentage of avocado oil as their primary source of cooking oil, which is a factor that helps the expansion of the industry. In recent years, there has been a meteoric rise in the popularity of eating a healthy diet across the continent of North America.

Europe is anticipated to exhibit a CAGR of 4.30% over the forecast period. Avocado oil is widely consumed throughout Europe, making it a popular product in this region. These countries, the developed countries in the region, have some of the highest GDPs in the world and are currently leading the European market in building the European economy. The avocado fruit and extra virgin avocado oil are two new items gaining popularity in the international food and beverage business and the cosmetics sector. Due to Europe's mature market, there is a significant demand for cooking oils with a high smoking point. As people have a high amount of extra income, they can spend significantly on things of this kind. The increased use of cosmetics containing natural components is a primary factor behind expanding the extra virgin avocado oil market in the European region. This factor also contributes to the growth of the market.

The Asia-Pacific region uses far less avocado oil in their cooking than Europe and North America. There are a variety of other cooking oils on the market now that share many of the same qualities that avocado oil has, which is one of the reasons why avocado oil is not used as frequently as it once was. Due to a lack of health knowledge in the Asia-Pacific area, avocado oil does not have a strong market presence there. As a result of the low penetration of this oil in this region, market companies have the potential to develop their operations in this region, which may present a growth opportunity for the worldwide extra virgin avocado oil market.

Latin America, the Middle East, and Africa are the regions where extra virgin avocado oil is most widely used in the food and beverage and cosmetics industries, respectively. African countries are embracing the new trend of leading healthy lifestyles. They are changing their cooking practices to use low-calorie oils to prepare meals. Avocado oil is gaining popularity in African countries like Kenya, Uganda, and Tanzania because it is well known to have a low-calorie content and is excellent for cooking. During the forecast period, it is anticipated that the expansion of the avocado oil market in the LAMEA area will be aided by the favorable effects of these regions' growth on other nearby nations.

Segmental Analysis

The global extra virgin avocado oil market is bifurcated into product and distribution channels.

The global extra virgin avocado oil market is bifurcated into food, beverage, and cosmetics based on the product. 

The food and beverage segment owns the highest market share and is predicted to exhibit a CAGR of 4.40% over the forecast period. Almost all high-heat cooking methods, such as baking, stir-frying, deep-frying, searing, grilling, roasting, and sautéing, call for extra virgin avocado oil. As a result of its superior health properties and higher smoking point than other cooking oils, this oil is mostly used in Europe and North America. The nutritional value and other qualities of extra virgin avocado oil are preserved since it is extracted using the cold pressing method, which preserves the oil's taste and smell. Extra virgin avocado oil is superior to other cooking oils because of its high smoking point. Heart problems are brought on by the loss of Flavors and nutrition in deep-fried oils with low smoking points.

Additionally, potassium, which keeps muscles and nerves functioning and aids blood pressure regulation, is present. As it suppresses the body's synthesis of pro-inflammatory chemicals, extra virgin avocado oil aids in avoiding any harm to the synovial cells in the joints. The extra virgin avocado oil's high smoking point contributes to rising demand in developed nations and driving market expansion.

Based on distribution channels, the global extra virgin avocado oil market is divided into hypermarkets/supermarkets, convenience stores, and online stores. 

The supermarket/hypermarket segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 4.20% over the forecast period. A department store, often larger than a supermarket, is part of a larger shopping center called a hypermarket. It is simple for customers to view many cooking oil and cosmetic product varieties, compare attributes, and make purchasing decisions. In contrast, a supermarket is a sizable retail mall where people buy things systematically arranged on the shelves. Products comparable to each other are placed close together to make it easier for customers to compare them and choose which product to purchase.

Customers can easily make purchases at a supermarket or hypermarket. It provides various cooking oil varieties and cosmetics from different manufacturers, each with its specialties. In developing nations, the penetration of the retail sales channel has increased, opening up new opportunities for market expansion. Additionally, increasing the offers and discounts these distribution channels provide clients leads to supermarkets and hypermarkets dominating the extra virgin avocado oil industry globally. Additionally, it is anticipated that supermarkets and hypermarkets will continue to be the most popular distribution channels during the forecast period.

Recent Developments

• August 2022- The French company Laboratoires Expanscience introduced a new organic, emollient, and nutritious avocado fruit oil. It was made by cold pressing entire, previously dried avocados.
• September 2021- New York-based company Glow Recipe announced the release of Avocado Ceramide Recovery Serum. This lotion can improve the skin's moisture barrier and the complexion. Ceramides and avocado fruit oil are worth mentioning since they provide comfort and TLC. Both Sephora.com and the brand's website offer the product for sale.