Global Avocado Processing Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Avocado Processing Market Analysis

Avocado is a product used for various purposes such as confectionery (baking of cakes), preparation of fine soup mixes and appetizers, and as an ingredient in cosmetics such as oils, soaps, skin lotions, shampoos, and other similar products. The fruit can be processed into various products like avocado oils, guacamole, avocado sauce, frozen products, and others.

Avocado acts as an antioxidant, which helps enhance skin and wound healing, and neutralises free radicals, further enhancing the growth of the avocado processing market. Expanding food habits to include new and exotic items has led to an increase in industry growth. The introduction of recipes involving the use of the product has provided an impetus to the industry's growth. The industry is further being aided by the growing acceptance of Western food patterns and different cuisines by the growing middle-class population.

Avocado Processing Market Growth

The growth in the avocado processing market is driven by rising disposable income and enhancing living standards, especially in emerging economies. The rising awareness of the benefits of avocado has spurred the demand for avocado-processed products in the food and beverage industry and cosmetics and wellness industry. These benefits include the reduction of cholesterol and improvement of heart conditions, owing to the presence of oleic acid.

The growing trend toward plant-based diets and veganism is boosting the demand for avocados, as they are considered a healthy, plant-based source of fats and proteins. Avocados are widely used in vegan and vegetarian cooking, leading to a greater demand for processed avocado products in food manufacturing and retail sectors.

Key Trends and Developments

Avocado Processing Market Trends

Avocado-based products such as guacamole, avocado oil, avocado paste, and pre-packaged avocado slices are gaining traction in the global avocado processing market. The increasing consumer preference for healthy, nutritious, and convenient food options is driving demand for processed avocado products in both retail and food service sectors.

Avocado oil, known for its health benefits, is becoming increasingly popular in the culinary and personal care sectors. Its use in cooking, cosmetics, and skin care products is rising, leading to a growth in avocado oil processing and a greater share of the market for avocado oil-based products.

Avocado Processing Market Dynamics

As per a study conducted by Nutrition Journal, people who consumed half an avocado with lunch showed around 40% reduction in the desire to eat for hours after that. Avocados also contain monounsaturated fats which can control glucose levels, making them optimal for people suffering from type 2 diabetes.

Ethylene-controlled packaging is boosting avocado processing market opportunities as it can reduce the ripening process in avocados by controlling ethylene gas production. These packaging solutions are extremely beneficial during the transportation and storage of avocados as they ensure their optimal quality. Several market players such as Fresh Inset are offering flexible, ethylene-inhibiting packaging which can slow down the ripening process during shipment, ensuring that the avocados remain fresh for a long duration.

Avocado Processing Market Restraints

Studies have stated that avocados are highly perishable and cannot be stored for more than 2-3 days at room temperature which poses a significant challenge for the processors. Avocado pricing also witnessed a sharp increase in 2023, due to the unsettling weather conditions in Mexico, which is responsible for around 80% of the supply to the United States.

As per the avocado processing industry analysis, the rising demand for avocados has fuelled the requirement for plantation-style cultivation methods in which avocados are cultivated using monoculture that relies on synthetic fertilisers and other farming methods that can be damaging to the soil in the long term. Moreover, avocado farming can require up to 70 gallons of water for its cultivation, making it difficult to grow in drought-prone and water scarcity areas.

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Avocado Processing Industry Segmentation

Avocado Processing Market Share

By Product Type Insights

Currently, guacamole represents the largest avocado processing market share, owing to the rising popularity of pre-packaged and ready-to-eat avocado-based products among health-conscious consumers. Guacamole is also a crucial part of Mexican cuisine and can be used as a dip for tortillas and multigrain chips, among others. Chipotle Mexican Grill, a major provider of guacamole, uses around 4.5 million avocados per day for its restaurants across the world.

Frozen avocados are also expected to gain popularity in the ready-to-eat consumer product segment, owing to their increased shelf life compared to fresh produce as well as rising demand in the urban areas.

By Application Insights

Amongst these, food and beverages account for the largest market share and boost the growth of the avocado processing industry due to the rise of Mexican cuisine in the United States and Europe. Avocado oil has also been gaining prominence in the health and wellness sector as they are rich in healthy fat and vitamins and can be used for salad dressings.  Major retail chains such as Walmart and Whole Foods are offering a wide range of avocado oil products.

Moreover, as per a report published by the USDA, avocados have established themselves as a staple ingredient in American restaurants as well as food chains such as McDonald's and Subway.

By Distribution Channel Insights

Supermarkets and hypermarkets accounted for a substantial market share, specifically in regions such as North America and Europe. Retail chains such as Walmart, Costco, and Tesco are increasing their offering of avocado-based products such as guacamole, avocado oil, and frozen avocados. For instance, Costco is well-known for its organic frozen avocado and fresh guacamole, further aiding the avocado processing industry revenue.

Retail chains such as Kroger and Whole Foods are also readily offering organic avocado products to appeal to eco-conscious consumers. Online channels, on the other hand, are also expected to gain significant growth owing to the popularity of online grocery delivery services such as Amazon Fresh and Walmart Online.

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Avocado Processing Market Regional Analysis

North America Avocado Processing Market Trends

North America is the leading market for avocado processing globally. This is attributed to the increasing demand for processed avocado products, such as guacamole, frozen avocado, avocado oil, and avocado sauce within the region. The avocado processing market value is rising owing to several factors, such as its rich oleic acid content, which is a very healthy fat, and its ability to increase the efficiency of the absorption of essential nutrients, decrease cholesterol levels, and enhance heart health.

In 2023, the United States accounted for around 80% of the global avocado imports, due to the growth of healthy plant-based diets. Furthermore, Guacamole has established itself as the largest processed avocado product in North America.

Asia Pacific Avocado Processing Market Drivers

The Asia Pacific region is expected to gain significant growth in the market as the rising consumption of avocados in countries such as China, Japan, and South Korea is boosting the avocado processing market revenue. For instance, avocado imports in China reached more than 43,000 tons in 2022.

The avocado production in Australia was witnessing a growth of 10% in 2022. Additionally, Western Australia is the most prominent region for the growth of fruits in Australia, including avocados, as the state boosted production of around 65,000 tonnes of avocados in 2023-24, which created lucrative opportunities for the avocado processing sector. 

Europe Avocado Processing Market Opportunities

The European region accounts for a major market share owing to the rising production of avocado in Peru as well as its large number of health benefits. The total import of avocado in the region was around 813,000 tonnes in 2022, whereas the total avocado imports, specifically from developing countries, were valued at around €1.8 billion in 2022, which boosted the avocado processing market expansion. France has established itself as a prominent end-market for avocados whereas the Scandinavian countries showcase the highest consumption per capita. Moreover, the Netherlands have established itself as one of the leading trade hubs of avocados as the country is responsible for the import of more than half of avocado imports in the region. 

Latin America Avocado Processing Market Growth

Mexico and Chile are the top two consumers of avocados in the world, which has boosted the demand for avocado processing facilities in the region. Mexico represents around 30% of the global avocado production as its avocados are consumed in 51 countries.  Colombia and Peru have also established themselves in the regional market with Colombia reaching a staggering yield of more than 1 million metric tons and Peru reaching a yield of more than 860,000 tons, contributing to the overall avocado processing market development. 

As per the estimates by the Chilean Avocado Committee, around 200,000 tons of harvest was projected for the year 2024-25 which indicated a significant growth of 33 percent compared to the last time period.  

Middle East and Africa Avocado Processing Market Dynamics

The MEA market is also growing at a steady rate owing to the rising awareness regarding the health benefits of avocados. South Africa is a major producer of avocados in the region and mainly offers avocados for the production of avocado oil and guacamole. Opportunities are also increasing in the Kenyan market with the rise of agribusinesses such as Karakuta, which is known for its Hass avocados. 

As per the avocado processing market dynamics and trends, the rising popularity of plant-based and organic oils in countries such as the United Arab Emirates and Saudi Arabia is boosting the demand for avocado-based oils.

Competitive Landscape

The report gives a detailed analysis of the following key players in the global avocado processing market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds. Major market players are focusing on the expansion of its value-added product line by the introduction of products such as fresh-cut avocados and salsa. They are also enhancing the capacity of their production facilities to meet the rising demand from consumers.

Calavo Growers

The company was founded in 1924 and is based in California, the United States. It is known for its fresh produce of avocados and is heavily involved in its entire avocado supply chain including farming, processing, packaging, and shipment. Its subsidiary, Renaissance Food Group (RFG), is known for its guacamole products.

Olivado Group

Founded in 2000, this company is one of the major producers of premium cold-pressed avocado oil. The company i...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Innovative Avocado Processing Startups

Startups in the global market are focused on sustainable agriculture practices to ensure they reduce food wastage for an efficient supply chain. Several new players are also collaborating with the smallholder farmers to support local communities as well as supply high-end avocados. Moreover, some other startups are investing in the expansion of their distribution facilities to meet the rising demand for fresh and processed avocados.

Avo Pacific

This startup in the avocado processing industry is based in California, the United States, and is known for its wide range of products such as fresh avocados, avocado oil, and guacamole, among others. The company incorporates sustainable farming practices and cold chain logistics to ensure that it offers fresh and high-quality avocado products. It further invests in advanced automation technology in its processing to improve operational efficiency. 

West Pak Avocado Inc.

This is one of the prominent rising players in the market which is known for its wide range of fresh and packaged avocado products. It is focused on sustainability and expansion efforts, specifically in the North and Latin American markets to meet the demand for ready-to-eat guacamole and frozen avocados among consumers in the urban areas.