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    Breaking News

    Embrace of Natural Ingredients Leads to Soaring Sales of Avocado Extract

    Study estimates nearly 35% of the avocado extract application in 2019 will be in the food and beverage industry.

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    01.07.19
    Consumption of avocado extracts is estimated to surpass 211 thousand tons in 2019, according to a new Fact.MR study. Besides avocado’s popularity as a fruit, demand for avocado has skyrocketed in past decades owing to its increasing utilization in multiple applications.

    The study finds that demand for avocado powder is rising rapidly wherein volume consumption grew at nearly 8% in 2018. Avocado powder has made its way through the food industry as a super-food which allows the use of avocado fruit along with its nutritious qualities in food production.

    “Avocado extract market closely follows avocado supply chain. Low farm prices as well as logistics and operational challenges associated with avocado continue to add volatility in the market. However, efforts to increase production capacities have strengthened the supply chain which is meeting the surging demand for avocado. Amid this scenario, the avocado market generated worth $1.3 billion revenues in 2018,” said Fact.MR Senior Research Analyst Sneha Varghese.

    The study opines that among different avocado extract products, avocado oil is highly consumed. Along with the health benefits, growing demand for edible oils and application in food & beverage and cosmetics industries are few of the important fillips responsible for the rising consumption of avocado oil. 

    In addition, rising consumption of packaged and processed foods also contributes to the rising demand for avocado oil which is one of the most widely used ingredients in processed food & beverage products.

    Growing appetite for avocado has increased the number of avocado recipes in restaurant menus. In particular, demand for guacamole has surged considerably which, in turn, has increased utilization of avocado puree in commercial and home-based applications.

    Application of avocado extracts remains heavily consolidated in the food and beverage industry. The study estimates that nearly 35% of the avocado extract application in 2019 will be in the food and beverage industry. Rising consumer preference for natural ingredients in food products and clean label trend are fueling the utilization of avocado extracts in the food industry.

    According to the study, consumption of avocado extracts in the pharmaceutical industry is growing at a healthy rate. Avocado extract consumption in pharmaceutical industry is estimated to grow at 7.1% y-o-y in 2019. Dissemination of knowledge regarding healthfulness of avocado and beneficial results in disease management present growing potential for avocado application in the pharmaceutical industry.

    Cosmetics and dietary supplements are other lucrative avenues for avocado extracts market as demand is estimated to rise steadily in the coming years. Avocado oil application in the cosmetics industry is traditional, however, consumer preference for avocado ingredients in natural beauty products is rising.

    Avocado extracts produced from hass avocado variety are highly consumed across the globe. A favorable price point of hass avocado variety and predominant production of hass variety of avocado explains its significant volume share as compared to other avocado sources. The study finds that over 55% of the global avocado extract consumed are of hass avocado origin. However, increasing demand for locally produced avocado extract products is likely to witness growing demand for other sources of avocado extracts over traditional sources.

    The study opines that Latin America will continue to hold its pole position in the avocado extract market. While hosting the largest avocado producing countries including Mexico, Peru, Columbia, the Dominical Republic, Argentina, Chile and Brazil, Latin America, one third of the global consumption was held by Latin America in 2018. North America follows Latin America in avocado extract consumption wherein market remains import-oriented with significant import from Mexico.

    According to the study, the avocado extract market is projected to grow at 5.7% CAGR during the forecast period of 2018-2027. 

     
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