The global avocado market is expected to grow at a CAGR of 5.72% over the forecast period to reach a total market size of US$17.905 billion by 2025, increasing from US$12.824 billion in 2019. These bright green fruits are often called alligator pears or the butter fruit and in recent years are extensively used as ready to go ingredients in all sorts of dishes. With high nutritional value in terms of low sugar content and high fiber content avocados are embraced by the majority of the population in the developed economies. Today, a major component of a healthy lifestyle includes the intake of nutritious foods which can help to prevent diseases. The vitamins, healthy fats, and minerals in avocados helps to prevent diseases such as cancer, arthritis, inflammation, and even depression.
Latin America and the Caribbean are the leading avocados producing regions
The advantage of tropical weather conditions along with its proximity to the United States (one of the largest markets for avocados) has resulted in the formation of the export-oriented market in the region. The production and trade of avocados are expected to increase on account of rising disposable income and growing consumer awareness in different parts of the world. However, changing climatic conditions is restraining the region's production potential as small island states are experiencing destructive effects of growing frequent tropical storms. Besides, avocado production in the region is heavily impacted by the weather conditions and hence, shows yearly variations.
Growing popularity among millennial population
Avocado is considered an ideal food for teenagers on account of its rich food content and composition as a healthy snack and with the growing health awareness among the young population its popularity is expected to further grow among the millennial population in the coming years. The growing working population in various parts of the world is expected to drive the growth of the market during the forecast period. For instance, according to the World Bank analysis, the population ages fifteen to sixty-five as the percent of the total population in Mexico and Brazil has increased from 63.23% and 67.35% in 2007 to 66.39% and 69.73% in 2019, respectively.
In addition, expanding food retail business coupled with the growing product launches of avocado-based products such as dips is fast food retailing giants is further anticipated to boost the demand for avocados over the forecast period. For instance, according to the United States Department of Agriculture (USDA), the consumer foodservice industry in Mexico is experiencing growth over the last five years and with the growing fast pace lifestyle in the major biggest cities the HRI sector is expected to advance at the significant rate creating ample opportunities for avocado producers in the country.
Environmental factors are expected to restrain the growth of the market during the forecast period.
Due to the growing popularity of avocado, there is an increasing demand over the past few years resulting in the rise in avocado prices making it more economically valuable than other tropical fruits. As a result, the commercial business of avocados is gaining popularity consequently leading to deforestation which is now becoming a major environmental issue in the world's largest avocado producing country Mexico. Avocado orchards are also affecting the wildlife in many tropical regions as they require twice as much water as the fairly large forest requires and with the growing deforestation avocado business are now under scrutiny. Furthermore, the extensive avocado farming in Mexico is causing water shortages, biodiversity, and even earthquakes causing environmental havoc.
Expanding e-retail business
In recent years, the e-retail business has witnessed an exponential increase in sales, and with the development and growth of online shopping along with the rapid speed of urbanization in various developing economies around the globe is projected to propel the market growth opportunities over the forecast period. Besides, with the growing number of smartphone users, time spent on the internet also increases that drives the growth of e-commerce platforms which is also opening the scope of distribution of avocado-based products which further directly boosts the demand for avocados. Furthermore, the diversity of features including value-added services, such as discounted prices, cash-on-delivery, and cashback offers, offered by e-retailers are expected to promote the growth of online channel over the forecast period. Furthermore, according to the World Bank, individual using internet as the percent of the total population in China, India, and Indonesia has increased from 34.3%, 7.5%, and 10.92% in 2010 to 56.12%, 40.13%, and 39.05% in 2018.
By geography, the global avocado market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The North American region is expected to hold a significant share in the market owing to the presence of major players coupled with the growing number of product launches in the region. In addition, growing awareness regarding the health benefit of avocado is further anticipated to boost the growth of the market in the region. However, most of the avocado are produced domestically in California but with the changing weather conditions, the production also changes leading to higher dependence on Mexico for import. The European region is home to Hass avocado consuming population and with the increasing product launches the market is expected to witness significant growth in the coming years.
Market value/supply chain
The market dynamic section of the report also analyses the cost economies and supply chain management of the avocado market. By production, the market is concentrated as the top nine countries hold more than seventy percent of the global production. Mexico is the leading avocado producing country with nearly 33% share followed by Indonesia, Brazil, and the United States. While Chile is one of the major exporters in the world and the United Kingdom, France, and the United States the leading importer in the world. Small farm holders in the major developing producing countries have been traditionally locked due to challenges such as poor quality, inconsistent supply, and small volume which have fueled their endless cycle of poverty. Since most of the farmers hold few trees, therefore, the whole army of collectors are employed to collect, harvest, and sell them to the district wholesalers collection centers who hold significant importance in the whole value chain process. Furthermore, from the wholesalers and other traders' unions avocado are directly sold to the final distribution channel including supermarkets, shops, hawkers, and food catering businesses.
January 2020, Harvard Management Company (HMC) acquired a small stake in Westfalia Fruit International (WFI), which is a leading supplier of fresh fruit and related value-added products in the international markets.
March 2020, US-based producer of coconut-based products NACO, released a new Vegan Coconut Avocado Mayo aiming to create a healthy and tasty alternative to mayonnaise.
May 2020, SAN FRANCISCO based company The Naked Market introduces AvoCrazy, a new plant-based avocado puff snack that is gluten-free, vegan, and non-GMO.
February 2020, McCormick & Co launched Avocado-flavored mayonnaise and buffalo ranch barbecue sauce to cater to the growing demand.
June 2020, the Viavi Avo brand of the Cream of the Crop launched a partnership with Afrupro to strengthen the supply chain of the business.
February 2020, at Natural Products Expo West in Anaheim, CA the newly launched plant-based snack brand, BranchOut debuted in the first avocado chip which is made from real, dried avocado slices.
August 2019, Black & Green introduces India’s first extra virgin Avocado oil to meet the demand for healthy oil by the customer in the country.
May 2017, Sunfresh Marketing Co-Operative announced the launch of its new processing facility and new 100% natural avocado pulp products. The new product launched by the company is made from 100% natural avocado with no chemicals or preservatives added. Also, it does not brown easily and has a long shelf life, utilizing a unique process that is a world first, enabling broad distribution in Australia and worldwide.
Prominent/major key market players in the global avocado market include Calavo Growers, Inc., Del Rey Avocado Company, Inc., WestPak, Westfaliafruit, Mission Produce Inc, and Avehass among others. The number of players in the avocado market is restricted and is growing with the opportunity to generate significant revenues because of growing demand in various parts of the world. The players in the global avocado market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have beencovered along with their relative competitive position and strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the global avocado market.