GVR Report cover Fresh Avocado Market Size, Share & Trends Report

Fresh Avocado Market Size, Share & Trends Analysis Report By Form (Raw, Processed), By Distribution Channel (Retail Store, Online, Specialty Store), By Region, And Segment Forecasts, 2022 - 2028

  • Published Date: May 2022
  • Report ID: GVR-4-68039-929-5
  • Number of Pages: 75
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2020

Report Overview

The global fresh avocado market size was valued at USD 14.2 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 9.1% from 2022 to 2028. Increasing focus on a healthy lifestyle and growing number of buyers for healthy food products are impelling the market growth. Moreover, increasing awareness about nutritional values, a growing middle-class population, and rising import demand is expected to boost industry growth. Advanced markets for processed avocado are also estimated to drive the industry growth. With this, the demand for fresh avocado is seen rising. Also, age group and income levels play an important role in determining the purchase of the product. The COVID-19 pandemic has adversely affected the market in various regions.

U.S. fresh avocado market size, by form, 2019 - 2028 (USD Billion)

As lockdown was imposed in many regions, the supply chain was disturbed. Furthermore, as avocado production and trade are characterized by labor-intensive nature, physical distancing measures have had a direct adverse effect on the supply chain. Various business and retail shops were closed down, which adversely affected the turnover of the avocado market. The pandemic has also impacted logistics suppliers and farmworkers; however, wholesalers and exporters are following a new path to enhance productivity with safety protocols. With the rise in health consciousness, the product demand is also increasing. Avocados help maintain cholesterol levels and improve heart & eye health.

The high-fiber content in avocados helps improve digestion, prevents constipation, maintains a healthy digestive tract, and minimizes the risk of colon cancer. The consumption of avocados is also known to reduce the risk of depression. In addition, avocados are rich in vitamin K, which improves bone health by increasing calcium absorption and reducing the amount of calcium excreted in the urine. Rising consumer awareness about these health benefits will drive the demand for avocados, thereby propelling the market growth over the forecast period. Furthermore, improvement in living standards, an increase in health expenditure, a surge in disposable income, and large-scale promotion of processed avocados will boost the market growth.

Also, due to the increasing working population, there is rising demand for quality and nutritional food, which, in turn, will drive the market growth. Moreover, the easy availability of ready-to-eat avocados also drives the market. The growing awareness about following a healthy lifestyle is increasing the consumption of avocado. Also, increasing the consumption of healthy foods, juices, and smoothies boosts the product demand. Hence, the business is estimated to witness significant growth over the assessment period. According to a document published by FAOSTAT, avocado production was more than 7 million metric tons in 2019, which reached around 8.1 million metric tons in 2020, a rise of almost 10%.

Due to its wide range of nutritional, medical, culinary, and cosmetic benefits, there has been a rise in product consumption among millennials. In addition, the proliferation of online distribution channels has ensured the shortcomings of brick-and-mortar channels. Moreover, increasing advertisement and promotional campaign initiatives in the U.S., EU, and other regions to encourage consumers have boosted the demand. These initiatives are critical in managing the highly dynamic supply chain and price of the fruit and ensuring a sustainable supply of high-quality products throughout the year. Importers and consumers can take advantage of burgeoning production in different parts of the world, while producers and exporters can take advantage of booming demand and lucrative markets.

Form Insights

The raw form segment accounted for the highest revenue share of more than 72.5% in 2021. Due to the increasing demand for raw fruit, manufacturers are implementing new technologies in production globally. The availability of raw avocados in various options is making them popular among customers, which is a key factor driving the segment growth. The consumption of fresh avocados in Europe and the United States has hit record highs after a temporary drop in demand at the start of the COVID-19 crisis. The pandemic has boosted the global demand for the most popular variety, Hass avocados. The growing awareness about the benefits of consumption of fresh foods and easy product availability has largely influenced the market growth.

Although processed avocados are gaining popularity, avocados are mainly eaten in their fresh form. The processed form segment is estimated to register the fastest growth rate over the forecast period due to the increasing demand. Rising disposable income levels and changing lifestyles are also among the major factors driving the growth of this segment. Avocados can be processed into guacamole blend, pulp, salsa, and drinks. The consumption of avocados is on the rise globally with the increasing trend of westernization of food patterns and acceptance of different cuisines. In addition, the rising disposable income levels and changing lifestyles are also among the major factors driving the growth of this segment.

Distribution Channel Insights

The retail store segment contributed the highest share of more than 67.5% of the global revenue in 2021 owing to the increased consumer demand for fresh avocados through these channels. Due to changing food preferences, consumers are willing to pay higher prices for a variety of items that are fresh, high-quality, as well as safe, and convenient. Retail stores have a strong influence on how fruits and vegetables are displayed and are diversifying their assortment of ready-to-eat fruits and fresh-cut products. Whereas eliminating offline stores makes the supply chain more efficient.

Global fresh avocado market share, by distribution channel, 2021 (%)

As quality and freshness are key elements for consumers, online channels ensure that the products meet these expectations. The online channel segment is estimated to register the fastest CAGR from 2022 to 2028. The product can be purchased at an economical price as compared to the other offline channels. Such channels can provide various add-on benefits, such as doorstep delivery, coupon benefits, and other offers. In addition, the growing demand for delivery services and the rising number of app-based sellers are driving the segment over the forecast period.

Regional Insights

North America dominated the global market in 2021 and accounted for the largest share of more than 45.00% of the total revenue due to the high product demand in the U.S. and Canada. In addition, the increasing purchasing power of the consumers in this region drives the market growth. As the region presents attractive opportunities for the consumer goods sector, the market is projected to show lucrative growth. Also, increasing per capita consumption of avocados and rising import demand are boosting the market growth. The U.S. and Europe are expected to remain the largest product importers.

Despite growing trade with other regions, such as China and the Middle East, these regions will account for around 40% and 31% of global imports by 2030, according to the Organization for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO). It is important to focus on specific regions where demand can grow, but also diversify their markets as the industry is expected to become less concentrated. According to the “Agricultural Outlook 2021-2030 report” by the OECD and FAO, avocados are expected to be one of the most traded tropical fruit by 2030, after bananas.

It will overtake exports of pineapples and mangoes. The growing global demand and significant investments in production will support the expansion. Asia Pacific is expected to witness the fastest CAGR from 2022 to 2028. The growth is attributed to the increasing demand for fresh avocados across this region. An increase in disposable income in countries like China and India is driving the regional market growth. In addition, the presence of the target population drives the product demand.

Key Companies & Market Share Insights

Companies focus mainly on innovating new forms to meet the increasing demand. New players are entering the business owing to low market entry barriers and higher growth potential. The increasing product demand offers an opportunity for product development in the regions of high demand. For instance, Smart Ripe is a new smart packaging technology developed by ILIP Srl that uses RFID tags to detect and transmit real-time information about the ripeness of avocados. In addition, Naturcover is an edible coating developed by DECCO IBÉRICA POST COSECHA SAU for use on fruits, such as avocados, to minimize losses due to dehydration and maintain their firmness. Major companies operating in the global fresh avocado market are as follows:

  • Calavo Growers, Inc.

  • Del Rey Avocado Company, Inc.

  • West Pak Avocado, Inc.

  • Westfaliafruit

  • Avehass

  • Mission Produce Inc.

  • JBR Avocados

  • Propal

Fresh Avocado Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 15.4 billion

Revenue forecast in 2028

USD 26.2 billion

Growth rate

CAGR of 9.1% from 2022 to 2028

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Form, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Brazil; Germany; U.K.; France; China; Japan; South Africa

Key companies profiled

Calavo Growers, Inc.; Del Rey Avocado Company, Inc.; West Pak Avocado Inc.; Westfaliafruit; Avehass; Mission Produce Inc.; JBR Avocados; Propal

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global fresh avocado market report on the basis of form, distribution channel, and region:

  • Form Outlook (Revenue, USD Million, 2017 - 2028)

    • Raw

    • Processed

  • Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)

    • Retail Store

    • Online

    • Specialty Store

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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