The Avocado Market is expected to grow from USD 20.188 billion in 2025 to USD 26.710 billion in 2030, at a CAGR of 5.76%.
These bright green fruits are often called alligator pears or butter fruit and, in recent years, have been extensively used as ready-to-go ingredients in all sorts of dishes. With high nutritional value in terms of low sugar content and high fibre content, avocados are embraced by the majority of the population in developed economies. Today, a major component of a healthy lifestyle includes the intake of nutritious foods, which can help prevent diseases. The vitamins, healthy fats, and minerals in avocados help prevent diseases such as cancer, arthritis, inflammation, and even depression.
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 are restraining the region's production potential as small island states are experiencing the 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.
Avocado is considered an ideal food for teenagers on account of its rich food content and composition as a healthy snack. With the growing health awareness among the young population, its popularity is expected to grow among the millennial population further in the coming years. The growing working population in various parts of the world is expected to drive the market's growth during the forecast period. For instance, according to the World Bank analysis, the population aged fifteen to sixty-five as a 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 the retail food business, coupled with the growing product launches of avocado-based products such as dips in 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 food service industry in Mexico has been experiencing growth over the last five years. With the growing, fast-paced lifestyle in the major cities, the HRI sector is expected to advance at a significant rate, creating ample opportunities for avocado producers in the country.
In recent years, the e-retail business has witnessed an exponential increase in sales. The development and growth of online shopping, along with the rapid speed of urbanization in various developing economies around the globe, are projected to propel market growth opportunities over the forecast period. Besides, with the growing number of smartphone users, time spent on the internet also increases, which 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 is expected to promote the growth of online channels over the forecast period. Furthermore, according to the World Bank, individuals using the 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.
Due to the growing popularity of avocados, there has been an increasing demand over the past few years, resulting in a 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. They require twice as much water as the fairly large forest requires, and with the growing deforestation avocado business is now under scrutiny. Furthermore, the extensive avocado farming in Mexico is causing water shortages, biodiversity loss, and even earthquakes, causing environmental havoc.
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 benefits of avocados is further anticipated to boost the growth of the market in the region. However, most avocados are produced domestically in California, but with the changing weather conditions, the production also changes, leading to higher dependence on Mexico for imports. The European region is home to the Hass avocado-consuming population, and with the increasing product launches, the market is expected to witness significant growth in the coming years.
The dynamic market 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 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 globally and the United Kingdom, France, and the United States are the leading importers 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 is employed to collect, harvest, and sell them to the district wholesaler collection centers, which hold significant importance in the whole value chain process. Furthermore, the wholesalers and other traders' union avocados are directly sold to the final distribution channel, including supermarkets, shops, hawkers, and food catering businesses.
Prominent/major key market players in the global avocado market include Calavo Growers, Inc., Del Rey Avocado Company, Inc., Westlake, 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 their competitors in this market.
Major market players have been covered along with their relative competitive position and strategies. 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.
Avocado Market Segmentation: