Avocado Market Size, Share, Growth, and Industry Analysis, By Type (Hass Avocado and Others), By Application (Personal Consumer, Food Service, Food Processing Manufacturer and Others) and Regional Insights and Forecast to 2032

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AVOCADO MARKET REPORT OVERVIEW

The Avocado Market size valued at USD 14.39 billion in 2024 and is expected to reach USD 23.16 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2032.

Avocado is a stone fruit, rich in nutrients that is originally from the south-central part of Mexico. It has a mousse-like consistency and tastes ‘nutty,’ and slightly buttery; it is eaten raw, and goes very well in salads, sandwiches, and dips like avocados. Technically, it is a berry though it is planted on the tree scientifically known as Persea americana of the Lauraceae clan.

COVID-19 IMPACT

Avocado Industry Had a Negative Effect Due to Disruptions in Supply Chain during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The pandemic resulted in disruptions of the supply chain all over the world and hence the transportation of avocados. Concessions put in place to banish trade with foreign countries and borders’ restrictions as well as scarce transportation influenced the timeliness of fresh produce delivery, including avocados. This led to choke points especially for the producers and suppliers in the value chain of avocado like Mexico, Peru and Chile.

LATEST TRENDS

Plant-Based and Vegan Movement to Propel Market Growth

Recent trends such as the use of vegan and plant-based products have increased greatly and this has called for the purchase of avocados. The rich texture and nutritional quality of avocados make them suitable for use in plant based meals including vegan avocado toast, avocado based smoothies and plant based burgers. Avocados are being blended in vegan recipes as substitutes for dairy products like in making cakes, butter and dairy cheeses, and as substitutes for meat, are rich in healthy fats and has a filling texture.

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AVOCADO MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Hass Avocado and Others.

Hass Avocado- Hass avocados are mainly medium to small or smaller in size, and, at maturity, possess a very dark green to almost black pebbled rind. It is green, and has a smooth skin that turns purple-black, when it is ripe for harvesting.

By Application

Based on application the global market can be categorized into Personal Consumer, Food Service, Food Processing Manufacturer and Others.

• Personal Consumer- Healthy or ripe avocados are the most consumed by the consumers where it is eaten in its natural state. Most often they are cut into pieces, mashed, or applied as a topping for salads, sandwiches or wraps. Manufacturing is perhaps the most famous example in the consumer plane is the avocado toast.

• Food Service- Avocado is extensively used in many restaurant preparations and is a popular menu item in cafes, fast food and fancy restaurants. It is added in appetizers, salads, burgers, tacos, as well as in the main dish. Guacamole is still served in many Mexican restaurants along with an increasing number of fast-food chains.

• Food Processing Manufacturer- Per Readymade Food they have Ready-to-eat Guacamole or any avocado based dips that are produced and packed for consumer use that are available in refrigerated or shelf-stable forms. Avocado puree is a very important product for the food processors because it can be used in soups, sauces, baby foods, juices, smoothies and many processed foods.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Health and Nutritional Benefits to Drive Market Advancement

One of the key driving factors in the Avocado market growth is the Health and Nutritional Benefits. Avocados can rightly be called superfoods because they are enriched with nutrients. The foods are loaded with monounsaturated fats, fiber, vitamins E, K, C, B6, potassium, and antioxidants, which make them quite attractive to the health conscious market. Potential benefits that include enhancing the health of the heart, promoting better digestion, and easing inflammation make them popular in the present generation diets. Avocados are added to plant-based diets and keto diets because of their high quantity of healthy fats. Because of this, as more people adopt those types of diets, producers have seen an increased consumption of avocados.

Rising Popularity of Vegan and Plant-Based Diets to Expand the Market

As plant-based eating becomes a regular thing around the world, avocados are popular products for veganism and vegetarianism. They are currently and increasingly applied as dairy, meat, and even fat sources in cooking (e.g., avo toast, dairy-free avocado ice-cream). The increased consumption of plant-based foods is believed to persist in the coming years, due to increased application of the same, hence the continued increased demand for avocado. It is worth noting that customers are now aspiring more for clean label foods, natural and with no additives or preservatives. Avocados fill this gap because they are a nutritious, clean-label whole food containing natural ingredients and additives.

Restraining Factor

Environmental Impact and Sustainability Concerns to potentially impede Market Growth

A prime example for this is avocados which need a lot of water to grow. This is a problem in areas that are short of water. Avocado farming, for instance, has been blamed for being raspy on water, which is a scarce commodity in places such as California and Mexico where water rationing is always a heart catching issue. Some countries cut down trees to plant avocados to feed the growing global population that craves avocado food products. This leads to environmental pollution and loss of Species, which is a major issue to sustainable living for those customers seeking environmentally friendly products. Avocados that travel long distances from countries such as Mexico, Peru or Chile, or are flown across continents) give the fruit a high carbon footprint, which is not good for those concerned with sustainability.

Opportunity

Rising Consumer Demand for Healthy and Nutritious Foods To Create Opportunity for the Product in the Market

Since consumers’ awareness of their health increases, avocados offer a healthful nutrient, fat, vitamin, and mineral value of a super-food. These trends in the increased consumption of nutrient-rich food products offer the avocado market new opportunities for growth in both, developed and developing countries. Advances in such diets as plant based diets, low carb and ketogenic diets, and gluten free diets also complement intake of avocados. Avocados are healthy; they are eaten raw in salads, as toppings for sandwiches, blended with fruits and vegetables for smoothies and are used in place of fatty foods in recipes.

Challenge

Environmental and Climatic Challenges Could Be a Potential Challenge for Consumers

To grow avocados, a lot of water is needed – around 200 gallons per tree per year. Different parts of world such as, Mexico, California and Chile where avocados are mostly cultivated are facing water shortage problem at present. The high water demand during the production of avocado also leads to resource constraint issues resulting to competition with other crops therefore resulting to evreational stresses. That is why fluctuations in the climate, extreme heat, and cold, or even lack of water at some months and floods at others have become major risks for avocado farming. These changes can lead to poor harvesting which affects the supply of avocados and in effect lead to price changes.

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AVOCADO MARKET REGIONAL INSIGHTS

• North America

North America has emerged as the most dominant region in the Avocado market share due to a convergence of factors that propel its leadership in this dynamic industry. Currently, the United States is among the largest consumers of avocado, and there is indication that the trend is set to grow due to rising importation of healthier foods, more so plant based products that are used in preparation of dishes such as guacamole and salads.

• Europe

Europe has experienced an ever-rising demand for avocados mostly in the UK, Spain, and France because society has embraced healthy diets. However, Europe’s avocado consumption is not as great as that of North America even if the consumption is increasing.

• Asia

The Asia-Pacific is projected to be a strong contender for avocados, but they are not nearly as consuming as North America and Europe. Nowadays there is increasing demand for avocados in such nations as Japan, South Korea, and China; however, the market is still emergent. Some regional sensitivities and lack of awareness about the fruit in many regions of Asia result in slower take up than NA counterparts.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Avocado Market Through Innovation and Market Expansion

Key enterprise players are shaping the Avocado marketplace through strategic innovation and marketplace growth. Currently, major players in the avocado industry, such as Avocados From Mexico and Mission Produce, are looking for sources in multiple countries (Mexico, Peru, Chile, and the Dominican Republic) to ensure that avocado is available all year round. This diversification of fruitful regions that tomatoes can be cultivated also partly offsets climate risks and disruptions to produce consistent supplies.

List of Top Avocado Companies

• Conitex Sonoco(India)
• Sonoco(U.S.)
• Erdie Industries(U.S.)
• Smurfit Kappa(Ireland)
• Corrugated Pallets(U.S.)

KEY INDUSTRY DEVELOPMENTS

April 2024:  The target constituency for this campaign was the consumer to increase the awareness of good Michigan stories and local sustainable values of California avocados .

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.