France Avocado Market is evaluated to have a market value of US$430.605 million in 2020.
The market growth is attributed to the growing demand for ready-to-eat meals and rising health awareness which is increasing the demand for health and wellness products, including secondary products derived from avocados. Moreover, an increase in household purchasing power and changing lifestyles significantly contribute to overall market growth. Additionally, the growing popularity of organic products across the country is projected to increase the demand for healthy fruits such as avocados. France is the second-largest producer of organic products, with the second-largest population in Europe (Source: USDA).
Being the second-largest populated country in Europe, France is considered the primary target market for fresh produce exporters. It imports millions of tons of fruits every year, which is anticipated to have a positive impact on the overall market growth. The growing consciousness among the consumers regarding the health benefits provided by avocado as it is rich in omega and other multi-nutrient quality is expected to drive the market growth during the forecast period. Ready-to-eat avocados are particularly popular in end markets, with a strong demand for convenience foods.
Growing awareness about the health benefits of AVOCADO
One of the prime reasons supporting the market's growth is the increasing awareness about the health benefits of avocados. Avocados are a nutrient-rich food with many health benefits that include abundant nutrients like (Vitamin C, B5, B6, E, and K), protein, healthy fats, etc. The daily consumption of avocado as a part of a hypocaloric diet helps in weight loss and increases gut bacteria. Moreover, rising interest in plant-based and low-carbohydrate clean eating diets is anticipated to drive the overall market growth during the forecast period. The growing popularity of plant-based protein sources coupled with concern for health and wellness to maintain protein intake is creating more demand for healthy fruits like avocados. Additionally, the high prevalence of chronic diseases has drawn people’s attention to their health and diet supplements. Consumers are willing to spend more on their dietary supplements. They include healthy fruits in their diet to develop strong immunity, which supports their health and is anticipated to drive the overall market growth.
French avocado market is divided into two industries: food and beverages and cosmetics
Avocado is used in sauces and dressings and snacks in the food and beverage industry. They are high in vitamins A, B, C, E, K, and other nutrients. The essential nutrients increase the demand for fruit, which is a major driving force behind the growth of the avocado market in the country. Avocados are in high order due to their health benefits, including improved vision, prevention of heart disease, and aiding indigestion. The market is expected to expand due to the rising demand for healthy, vegan, and vegetarian foods. It is also likely that the avocado market in France is increasing due to the increasing demand for gluten-free foods. According to OEC, in 2020, France imported $493 million in avocados, fresh or dried, making it the world's third-largest importer of avocados. France imports fresh or dried avocados primarily from Spain ($187 million), the Netherlands ($169 million), Israel ($41.1 million), Morocco ($25.8 million), and Mexico ($22.2 million).
COVID-19 scenario
With the outbreak of the COVID-19 virus, France's avocado market witnessed resilient growth, however lower than its expected potential. The robust outbreak of the COVID-19 virus and its exponential spread resulted in a fall in demand for avocados by the HoReCa industry, which led to a contraction in the market. France's household sector increased its demand for avocados, which notably countered the contraction witnessed by the HoReCa industry. However, lower demand growth constrained the market from realizing its potential. Furthermore, notable price volatility coupled with continuous price changes also hampered the market from realizing its potential. Moreover, trade restrictions also restricted the market.
Key Developments
Market segmentation