Avocado Extract Market -Supply Chain Challenges Impede Avocado Stockpiling

Published: Mon Aug 26 2019


Avocado production is concentrated in Mexico which accounts for 35-45% of the global avocado supply. Other prominent producers include the Dominican Republic, Peru, Colombia, and Indonesia. Demand for avocado has skyrocketed in the past half a decade which has created volatility in the avocado market, particularly lower field prices.


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Moreover, the duration of avocado ripening depends on the harvesting time and post-harvest environment. Further, the fruit requires end-to-end monitoring during shipping and storage. In addition to the field price challenges, unique harvesting process and requirement of the cold chain while transportation further complicates the supply chain. The delicate supply chain is vulnerable to changes that may affect the stock used in the production of different avocado extract products.


Consumer spending on products with natural ingredients has increased significantly. The trend has fuelled the sales of consumer products with avocado ingredients. Further, the positive consumer sentiment about avocados as a healthy food is rubbing off on its growing adoption by cosmetic manufacturers. Avocado oil is known for its higher penetration in the skin tissue and is a highly used ingredient in nourishing creams, massage oil, massage cream and other lubricating lotions.


Sales of beauty products with anti-aging properties are growing rapidly. Avocado oil is known for its higher content of anti-oxidant chemicals that protect the skin from damage and help reduce skin wrinkles.


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As an essential cooking ingredient, demand for edible oil has witnessed a meteoric rise in past decade, owing to the impact of interconnected macro and microeconomic factors. Despite comparatively higher cost of avocado oil, consumption levels have increased significantly, thanks to a rapidly growing health-conscious consumer base.


In addition to the health benefits of avocado oil, steadily growing demand for value-added food products has augured well for sales of avocado extract including avocado oil, wherein extra virgin avocado oil is witnessing a significant demand.


The popular health and fitness trend is fueling the demand for various avocado extract products. As compared to other fruits, avocados are superfluous with minerals and other contents that have higher health value.


Avocado contains a number of vitamins including vitamin C, E, K and B vitamins such as riboflavin, niacin, folate, pantothenic acid and B6. In addition, they also contain smaller concentrations of magnesium, potassium, copper, iron, zinc and phosphorous. Avocados have high contents of lutein, zeaxanthin and beta-carotene. Further, avocados have omega-3 fatty acids which are helpful in relieving joint pain. High fiber is another beneficial content in avocados that help in weight loss and enhancement of metabolic health.


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