Avocado Oil – Insights
Avocado oil is extracted from the Persea Americana fruit and is used as a cooking oil, in cosmetics, and for lubrication, due to its moisturizing and regenerative properties. Avocado fruit is also known as butter pea or vegetable butter originated in Central America. Avocado oil consists high concentration of potassium, vitamins such as A, D, and E, and monounsaturated fats. Some of the properties of avocado oil are high smoke point to stop overheating of the oil and high monounsaturated fatty acids, fuels growth of the avocado oil market. Furthermore, increasing demand for healthy and natural foods is anticipated to fuel the market growth. The reduction of cholesterol level, control of psoriasis, and osteoarthritis are some of the benefits associated with avocado oil make it useful for the treatment of coronary heart disease, peripheral artery disease, and carotid artery disease, among others. Avocado is also used for the treatment of diabetes as it has low glycemic index by controlling its blood sugar level.
Among product types, extra virgin avocado oil segment accounted for the largest share in 2016. This is mainly owing to absence of chemical additives during the extraction process. This is the highest quality product extracted from high quality of fruit at low temperature. The extra virgin avocado oil is best used for dressings as no high heating takes place whereas non-extra virgin oil can be used for sautéing, grilling, frying, roasting, and baking dishes. The avocado oil market is classified on the basis of applications such as personal care products, cooking, medicinal products, and others. The personal care products is expected to hold for the largest market revenue over the forecast period (2017 to 2025), owing to its rapid absorption and high skin penetration. The positive impact of this oil for hair growth and cosmetic products such as nourishing creams, massage creams, and body lotions expected to fuel the avocado oil market growth.
North America held a dominant position in the global avocado oil market in 2016, with the region valued at US$ 11.2 million. This is owing to increasing health problems such as heart and chronic diseases, which are caused due to high intake of high fat oils, which in turn increases demand for avocado oil. In U.S., Coronary Artery Disease (CAD) is the most common type of heart disease which may lead to heart attack. According to Centers for Disease Control and Prevention (CDC), around 630,000 people die due to heart diseases every year, which are caused due to high LDL cholesterol, and high blood pressure. Moreover, CDC is involved in public health efforts related to heart disease. The Well-Integrated Screening and Evaluation for Women across the Nation (WISEWOMAN) was the program initiated by CDC in 2017 to help women in reducing their risk for heart diseases by providing services to promote lasting heart healthy lifestyle.
Increasing demand for avocado oil in personal care products owing to its beneficial monounsaturated fatty acids like oleic acid and its hydrating property, is expected to drive the market. According to the India Brand Equity Foundation (IBEF), the personal care products market is expected to reach US$ 10 billion by 2021 at a CAGR of 6%. The consumption of cosmetic products is increasing significantly, owing to increasing awareness and desire to look good. This in turn increases the demand for avocado oil in the region.
The avocado oil market was valued at US$ 62.8 million in 2016 and is expected to expand at a CAGR of 12.27%, in terms of revenue, over the forecast period (2017–2025).
Figure 1. Global Avocado Oil Market Share, by Region, 2016
Source: Coherent Market Insights (2017)
North America accounted to hold a revenue share of 58.12% in the global avocado oil market in 2016. However, presence of other healthier oils such as olive oil and safflower oil, is expected to act as a restraint for the growth of avocado oil market.
Major Players in Global Avocado Oil Market:
Some of the key players operating in the global avocado oil market are Sesajal S.A. de C.V., Olivado, Grupo Industrial Batellero S.A. de C.V, YASIN, Tron Hermanos SA de CV, The Village Press, Bella Vado, Chosen Foods LLC, and Storino's Quality Products.