The global market for fresh avocado was valued at USD 14.58 billion in 2021, and it is anticipated to reach USD 29.78 billion by 2030 at a CAGR of 9.34%. The avocado tree (Persea Americana), sometimes known as alligator pear, is a member of the Lauraceae family, and its fruit can be consumed. Avocados are indigenous to the western half of the hemisphere, from Mexico south to the Andean areas. They are grown extensively in warm conditions. The flesh of avocado fruits can be greenish or yellowish, and it has a consistency similar to butter with a rich and nutty flavour.
They are frequently consumed in salads, and in many regions of the world, people eat them as a form of sweet food. Guacamole, a condiment in the form of a sauce that is distinctive to Mexican cuisine, is typically made with mashed avocado as its primary ingredient. Avocados are a good source of thiamin, riboflavin, and vitamin A. Additionally, the flesh of some species of avocados contains up to 25 per cent unsaturated fat.
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The rising demand for health benefits is expected to drive the fresh avocado market
Over the forecast period, the primary factor that is anticipated to serve as a driving force for the fresh avocado market will be the growing demand in both developed and emerging regions for food that is beneficial to their health. The primary marketing technique for promoting avocado-based products is to focus on the beneficial effects of eating avocado fruit on one's health. Avocados' high fibre content aids digestion, prevents constipation, keeps the gastrointestinal system healthy, and lowers the chance of colon cancer development. It is also recognized that eating avocados can lower a person's likelihood of developing depression. Avocados' high vitamin K content also aids bone health by improving the body's ability to absorb calcium and reducing calcium loss through urination. Consumption of avocados will rise as consumers become more aware of the fruit's health benefits, fueling the market's expansion throughout the projected period. In addition, as living standards rise, health care spending rises, disposable money rises, and processed avocados are widely advertised, the market for these products will grow.
Increasingly popular with the millennial generation
A nutritious snack, avocado is considered the ideal food for teenagers due to its strong nutritional value. Its popularity is anticipated to increase among millennials in the upcoming years due to the increased health consciousness among the youthful population. During the projected period, the market's expansion is anticipated to be driven by the expanding working population in various areas of the world. For example, the number of people between 15 and 65 in Mexico and Brazil has grown from 63.23 per cent and 67.35 per cent in 2007 to 66.39 per cent and 69.73 per cent, respectively, in 2019.
Over the projected period, it is also anticipated that increased product launches of avocado-based goods, such as dips in fast food retailing giants, and the expansion of the retail food industry will increase demand for avocados. According to the US Department of Agriculture, the Mexican consumer food service business has increased during the past five years (USDA). The HRI industry is anticipated to grow significantly over the next several years, providing plenty of prospects for the nation's avocado farmers due to the expanding, fast-paced lifestyle in the largest cities.
Changing lifestyles is creating growth opportunities for the fresh avocado market
It is anticipated that the expansion and development of online shopping, in conjunction with the high pace of urbanization occurring in several developing economies worldwide, will propel market growth potential during the projection period. In addition, as the number of people who own smartphones continues to rise, the amount of time spent online will also continue to rise. It will drive the growth of e-commerce platforms, which will open up new avenues for the distribution of avocado-based products, which will in turn directly boost the demand for avocados.
Environmental issues are anticipated to impede market expansion during the forecast period
Since avocados are becoming more and more well-liked, there has been an increase in demand for them over the past several years. It has increased avocado pricing, making them more commercially valuable than other tropical fruits. As a result, the commercial sale of avocados is growing in popularity, resulting in deforestation, which is now becoming a significant environmental problem in Mexico. This nation produces the most avocados globally. In many tropical areas, wildlife is also being impacted by avocado orchards. Due to the increasing deforestation, the avocado industry is under examination because it demands twice as much water as a reasonably large forest. Additionally, Mexico's vast avocado growing is destroying the biodiversity and water supplies and even producing earthquakes that disastrously impact the ecosystem.
The global market for fresh avocado is divided into five parts based on form, nature, end-use, sales channel and region. Further, based on the form, the market is divided into Raw and Processed. In 2021, the raw form segment had the most significant revenue share—more than 72.5 per cent. Global businesses are using new technologies in production due to the rising demand for raw fruit. Customers like raw avocados because they are readily available in various forms, which is a significant driver in the segment's expansion.
Based on nature, the market is bifurcated into Organic and Conventional.
According to end-use, the market is segmented into Food, cosmetics, and Other Uses.
Based on the distribution channel, the market is divided into Retail Stores, Online and Speciality stores. Due to the rising customer demand for fresh avocados through these channels, the retail store category accounted for the most significant portion of global sales in 2021. Consumers are willing to pay more for a variety of fresh, high-quality, safe, and convenient products due to shifting eating preferences. Retail outlets diversify their selection of ready-to-eat fruits and fresh-cut products and significantly impact how fruits and vegetables are exhibited.
The market is divided into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa. North America dominated the market.
The global fresh avocado market is divided into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa.
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The high demand for the product in the United States and Canada led to North America's global market dominance in 2021. As a result, North America accounted for the most significant share of revenue, more than 45.00 per cent of the total. A further factor contributing to the industry's expansion is the rising purchasing power of customers in this region. It is anticipated that the market will demonstrate profitable expansion shortly due to the region's provision of enticing chances for the consumer products sector. Additionally, rising import demand and consumption of avocados per person contribute to the industry's expansion. It is anticipated that the United States of America and Europe will continue to be the leading importers of products.
Asia-Pacific is predicted to lead the global avocado market in terms of growth. The retail industry in Asia-Pacific, which now has the largest market share of avocados, is mainly responsible for the region's rising avocado consumption. This trend can be traced back to the sector's dominant position in the avocado market. It is anticipated that the retail end-use sector in Asia-Pacific would lead the area and significantly drive the expansion of the avocado market in APAC. The rising demand for avocados in the region's culinary sector is another factor that impacts the avocado market in Asia-Pacific.
Latin America is considered the most lucrative avocado-producing region. It is anticipated that the region will have a high market attractiveness in the coming years.
The fresh avocado market in Latin America is mainly sustained by the significant contributions made by Mexico, the Dominican Republic, and Colombia. Mexico is the primary contributor among these three countries. The Dominican Republic holds the 2nd position.