Avocado Market

Avocado Market Outlook (2024 to 2034)

Worldwide revenue from the avocado market is estimated at US$ 19.27 billion in 2024 and is forecast to increase at a CAGR of 5.9% to reach US$ 34.18 billion by the end of 2034. Avocados are increasingly becoming a favored food option due to their wide range of health benefits. More people are consuming it due to its anti-inflammatory properties, helping in weight loss, regulating blood pressure, improving digestion, and working effectively in reducing depression.

• According to a new study conducted by the University of Guelph, avocatin B in avocados is effective in the treatment of leukemia. With this research, avocados are becoming more popular among people suffering from leukemia.

The market for avocados is estimated to rise at a steady rate over the forecast period. Avocados require a warm and humid climate with temperatures ranging between 20 °C and 28 °C. They also require well-drained soil that is rich in organic matter. Avocado suppliers are in search of such regions with appropriate climatic conditions to maximize avocado growth and double their profits in the market. Avocados are a rich source of vitamins C, E, K, and B6, which makes them a vital component in the diet of health-conscious people.

Key Market Growth Drivers

• Oil extracted from the pulp of avocados helps reduce bad cholesterol levels. This is why doctors recommend avocado oil for people with cholesterol issues.
• Avocados, also referred to as alligator pear or butter fruit, are also filled with monosaturated fatty acids and have approximately 18% vitamin K, which is essential for bone health and helps in preventing osteoporosis.
• During pregnancy, mothers are often advised to consume avocados. Adequate intake reduces the risk of miscarriage and neural tube abnormalities. The consumption of avocados during pregnancy also benefits the fetus and provides the required nutrients for proper development.
• Fibers in the fruit help regulate bowel movement, which is crucial for the excretion of toxins through the bile and stool.
• Avocados include compounds like saponins, which alleviate knee and hip osteoarthritis symptoms. With the increasing prevalence of arthritis, more people are adding avocados to their meals.
• Apart from the fruit, avocado leaves also happen to be full of health benefits, as they promote heart health by enhancing blood circulation, lowering blood pressure, and reducing hypertension. Demand for avocado leaves is gaining traction for this reason.

Report Attribute	Detail
Avocado Market Size (2024E)	US$ 19.27 Billion
Forecasted Market Value (2034F)	US$ 34.18 Billion
Global Market Growth Rate (2024 to 2034)	5.9% CAGR
Canada Market Growth Rate (2024 to 2034)	6.4% CAGR
China Market Value (2034F)	US$ 3.75 Billion
North America Market Share (2024E)	23.9%
East Asia Market Share (2034F)	23.1%
Key Companies Profiled	Calavo Growers; West Pak Avocados; Mission Produce; Aguacates Seleccionados JBR; Camposol; Westfalia Fruit; McDaniel Fruit Co.; Henry Avocado Corporation; The Horton Fruit Company; Fresh Del Monte Produce Inc.; Superior Foods Companies; AMS Enterprise; Hormel Foods Corporations; Costa Group Holdings Limited; Brooks Tropicals Holding Inc.

Which Key Avocado Market Trends are Attracting the Attention of Producers?

“Shift toward Healthier Eating Habits and Rising Awareness of Benefits of Avocados”

Growing consumer desire for a healthy lifestyle has resulted in increased consumption of healthy food products. A shift toward healthier eating habits and preferences among the fast-growing middle-income segment of consumers, particularly in developing countries, is driving avocado market growth.

• According to the World Health Organization, fatalities among people who are overweight or obese are higher than those among underweight individuals.

There is a growing understanding of the benefits of eating various fruits and vegetables, particularly avocados, berries, and grapes, which aid in decreasing cholesterol and triglyceride levels and losing weight. As a result, the health advantages of avocados contribute to their global demand.

“Growing Preference for Snacks Offering Nutritional Benefits”

Consumers are eating more frequent, smaller meals throughout the day, looking for healthier alternatives. The demand for healthier snacks is projected to increase at a significant pace during the forecast period.

• According to the American Wholesale Marketers Association (AWMA), fresh snacks, such as fruits and avocados, are popular among customers.

What is Becoming a Potential Threat to Avocado Market Growth?

“Environmental Concerns Associated with Avocado Production”

There has been an increase in demand for avocados over the past few years. This has led to an increase in avocado pricing, making them more commercially valuable than other tropical fruits. As a result, extensive cultivation of avocados results in deforestation, which is now becoming a significant environmental problem in Mexico, the country that produces the most avocados globally.

“Increased Turnaround Time for Avocado Processing and High Product Prices”

Large proportion of avocado growing and processing companies in the market lack an approach to expanding their business operations into different stages of the production and supply chain. This leads to an inflation of avocados and associated product prices, as manufacturers are forced to spend additional costs on transportation and processing, which results in an increased turnaround time for the processing of avocados. This is projected to stifle avocado market expansion over the forecast period, owing to a lack of potential customers ready to pay the high expenditures of lengthy processes and operations.

Country-wise Evaluation

Suppliers are focusing on expanding their presence around the world, targeting countries such as the United States, China, Japan, South Korea, and Mexico. The market in Canada is evaluated to expand at a CAGR of 6.4% from 2024 to 2034. In addition, the country is projected to occupy an avocado market share of 34.5% in the North American region by the end of 2034.

Why are Suppliers Focusing on Expanding Their Customer Base in the United States?

“Increasing Adoption of Veganism and Low-Carb, High-Protein Food Options”

Attribute	United States
Market Value (2024E)	US$ 2.05 Billion
Growth Rate (2024 to 2034)	6.3% CAGR
Projected Value (2034F)	US$ 3.79 Billion

Avocados provide critical nutrients such as vitamins C, B5, B6, E, and K, as well as potassium, folate, protein, and healthy fats. Avocados contain seven grams of carbs per 100-gram serving, the majority of which are fiber, making them a low-carb alternative. More individuals are adopting veganism and vegetarianism in the United States, which is contributing to the expansion of the avocado market size in the nation. Therefore, when individuals reduce their consumption of animal-derived foods, avocados may easily replace comparable textures and tastes in dishes. Avocados added to a low-calorie diet help with weight loss and support the growth of good intestinal flora.

• According to the United States Department of Agriculture (USDA), the demand for avocados in the United States has gradually increased over the previous two decades. In 2021, China bought over 26,000 metric tons of fresh avocados from Peru, representing 64% of the whole imported avocado market. Between January and September 2022, China imported around 25,611 metric tons of Peruvian avocados, up 11% from the previous year.

What is Drawing Avocado Suppliers to South Korea?

“Rising Preference for Hass Avocados Due to Their Low Cost”

Attribute	South Korea
Market Value (2024E)	US$ 958.2 Million
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 1.82 Billion

South Korea is a lucrative market for avocado suppliers. The country accepts important commercial cultivars like Hass and Fuerte. However, it also introduces small commercial green skin variations. Many South Korean avocado customers favor petite Hass avocados due to their reduced cost.

Avocados' selling price is determined by their kind, quality, and size. Even though the Hass avocado with black skin is more expensive, its market share is gradually increasing. Avocados are available in various sizes in South Korea.

Category-wise Evaluation

Based on source, Fuerte avocados are set to reach a market share of 22.8% in 2024.

Which Source of Avocados is Primarily Preferred by End Users in the Market?

“Richer Taste and Creamier Texture of Hass Avocados Boost Sales”

Attribute	Hass
Segment Value (2024E)	US$ 6.51 Billion
Growth Rate (2024 to 2034)	5.9% CAGR
Projected Value (2034F)	US$ 11.52 Billion

Hass avocados are higher in fat compared to other varieties in the market, resulting in a richer taste and a smoother, creamier texture. They typically have green outer skin and buttery flesh. Consumers often prefer greener fruits, believing them to be riper, making Hass avocados more popular than Reed and Fuerte varieties.

How Do Conventional Farming Techniques Contribute to Avocado Supply?

“Traditional Farming Methods Contributing to Faster Avocado Growth”

Attribute	Conventional
Segment Value (2024E)	US$ 10.39 Billion
Growth Rate (2024 to 2034)	5.8% CAGR
Projected Value (2034F)	US$ 18.22 Billion

Traditional farming techniques help faster growth of avocados, leading to more supply. Suppliers can export the excess fruits to other countries and increase their profit margins. Constant supply significantly reduces the prices of avocados and makes it feasible for common people to buy them in large quantities and enjoy their health benefits.

Market Rivalry

Key players in the avocado industry are focusing on expanding their product line, improving their distribution network, and using advanced technology in processing. This strategy differs depending on the size of the firm, with large manufacturers focusing on omnichannel selling while acquiring new companies/small-scale outfits. This helps them expand their presence in unexplored markets by adapting themselves to evolving market trends such as the use of avocado extracts, avocado powder, and avocado oil.

• Horton Fruit Company focuses on enhancing distribution across the United States. The firm also maintains a refrigerated convoy of vehicles and offers next-day delivery to consumers within a 500-mile radius every day of the week. Horton Fruit also owns two 3PL firms to assist with shipping and distributing their fruit to the rest of the United States.

Fact.MR provides detailed information about the price points of key avocado suppliers positioned across the world, sales growth, production capacity, and speculative technological expansion in this new market report.

Key Segments of Avocado Market Research

• By Nature :

  • Organic
  • Conventional

• By Form :

  • Raw
  • Processed
    • Oil
      • Refined Oil
      • Extra Virgin Oil
      • Blends
    • Guacamole
    • Puree
    • Others

• By Source :

  • Hass
  • Reed
  • Fuerte
  • Others

• By Distribution Channel :

  • Direct Sales
  • Indirect Sales
    • Store-Based Retailing
      • Hypermarkets/Supermarkets
      • Convenience Stores
      • Independent Small Groceries
    • Others
    • Online Retailing

• By End Use :

  • Food & Beverages
    • Snacks
    • Dairy Products
    • Sauces & Dressings
    • Bakery Products
    • Others
  • Retail
  • Cosmetics & Personal Care
  • Others

• By Region :

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa