South America Avocado and Avocado Derivatives Market to Grow at a CAGR of 5.0% to reach US$ 1,392.88 million from 2022 to 2028

The South America avocado and avocado derivatives market was valued at US$ 1,039.72 million in 2022 and is projected to reach US$ 1,392.88 million by 2028; it is expected to grow at a CAGR of 5.0% from 2022 to 2028.

Avocados are majorly produced in tropical & subtropical South American countries such as Peru, Chile, and Columbia. Avocados contain antiaging, disease-fighting antioxidants and nearly 20 different vitamins and minerals which is driving their popularity among South American consumers. The avocado and avocado derivatives market is expected to witness significant growth in South America owing to the rising trend of healthy indulgence, the growing inclination toward avocado-enriched personal care products, and the increasing demand for organic products due to the rising health consciousness. 

Leading avocado growers and product manufacturers in South America are expanding their businesses to other regions. In September 2021, Green SuperFood (GSF)—a producer–exporter of premium and sustainable fresh fruits, and a Hass avocado grower in Colombia and Brazil—officially announced the creation of its new European marketing and distribution arm “Farmers Home Europe” at Fruit Attraction 2021. The Farmers Home Europe has a transparent business model, directly exporting Hass avocados to importers and retailers across Europe, the UK, and Russia all year round. Similarly, the subsidiary of Westfalia Fruit operating in France announced the construction of its new facility in Graveson, in the Provence region in southeastern France, in October 2022. This facility will include avocado storage, ripening rooms, and packing facilities to support Westfalia's pan-European operations.

Impact of COVID-19 Pandemic on South America Avocado and Avocado Derivatives Market

The COVID-19 crisis triggered several health concerns among consumers, which influenced their buying behavior. According to a study conducted by the California Avocado Commission in 2020, 20% of the surveyed consumers admitted buying more avocados during the pandemic for reasons such as health and comfort. Thus, the demand for avocados increased massively in late 2020 and 2021 as consumers preferred food supporting health and immunity. This created a massive demand for avocados and avocado-based products across South America. Nevertheless, the decline in production caused by disruptions in supply chains and a shortage of skilled laborers created a demand and supply gap in the region.

With the relaxation of government restrictions and the rise in vaccination rates, in 2021, the South American marketplaces started recovering from losses incurred in 2020. Moreover, businesses regained traction due to a slowdown in the spread of COVID-19, the completion of vaccination, and the removal of government restrictions in various South American countries. Avocado cultivators and avocado-based product manufacturers are operating at full capacity, which has helped them overcome the demand and supply gap.

The COVID-19 pandemic has significantly altered the buying behaviors of consumers. They are seeking healthy food that helps them boost immunity and prevent infections and diseases. This factor is expected to open lucrative opportunities for avocado growers and avocado-derivative manufacturers in South America.

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South America Avocado and Avocado Derivatives Market: Strategic Insights

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Market Insights

Rising Demand from Personal Care Industry in South America to Boosts Market Growth

Avocado extracts have been studied for their skin-healing properties as they are enriched with lecithin and phytosterols. It is comparable with lanolin due to its good skin penetration ability, high vitamin content, low odor, and excellent shelf life. Avocado extracts produce finer emulsions in products such as skin creams and lotions. Moreover, avocado oil is one of the most penetrating oils, and its skin tissue penetration ability is rated similar to lanolin. It, thus, serves as a "carrier" for other substances that lack penetrating ability. Due to this property, avocado oil is used in nourishing creams, massage creams, all-purpose creams, massage oils (muscle oils), and other preparations, facilitating penetration and lubrication. The rising disposable income across South American countries also favors the proliferation of the cosmetics & personal care industries in this region. Thus, the flourishing cosmetics and personal care industries bolster the avocado and avocado derivates market in South America.

Type-Based Insights

Based on type, the South America avocado and avocado derivatives market is segmented into whole, oil, puree, and others. The whole segment held the largest share of the market in 2021. Whole avocados are usually consumed directly by consumers, or they are processed into avocado oil, puree/pulp, and powder. Moreover, whole avocados are sliced/diced and packed into packages that are suitable for bulk and retail sales. Avocados are enriched with nutrients such as fatty acids, vitamins, minerals, protein, lecithin, and beta-carotene. Owing to their essential nutrient content, the demand for whole avocados is growing in industries such as food & beverages, personal care, and pharmaceuticals.

Category-Based Insights

Based on category, the South America avocado and avocado derivatives market is bifurcated into organic and conventional. The conventional segment accounted for a larger share of the market in 2021. Conventional farming involves planting these crops in full, direct sunlight, which leads to rapid crop growth and allows the growth of more plants in the given area. Conventionally grown avocados are cheaper than organic ones.

Application-Based Insights

Based on application, the South America avocado and avocado derivatives market is segmented into food & beverages, pharmaceuticals & nutraceuticals, personal care, and others. The food & beverages segment accounted for the largest share of the market in 2021. However, the personal care segment is anticipated to register the highest CAGR during the forecast period. In South America, the demand for avocados is increasing in food and beverage manufacturing with the growing popularity of high-nutrient food. According to a survey conducted by Tetra Pak in February 2021, consumers prefer avocado-based snacks with attributes, including healthy (56%), nutritious (51%), high in protein (40.8%), and calcium content (41.2%). The rising consumer inclination toward specialty products is encouraging companies in the food & beverages sector to incorporate such exotic ingredients into their processed food products.

Westfalia Fruit Pty Ltd, Salud Foodgroup Europe BV, Exportadora Propal SA, Berje Inc, Lemonconcentrate SLU, Avocado Brasil Comercio de Alimentos Ltda, ConnOils LLC, Mission Produce Inc, Calavo Growers Inc, and MERIDIAN FRUITS SPR de RL de CV are among the key players operating in the South America avocado and avocado derivatives market. These companies present wide product portfolios and are highly focused on developing high-quality and innovative products to meet the customers' requirements.

Report Spotlights

• Progressive industry trends in the South America avocado and avocado derivatives market to help players develop effective long-term strategies
• Business growth strategies adopted by developed and developing markets
• Quantitative analysis of the South America avocado and avocado derivatives market from 2020 to 2028
• Estimation of regional demand for avocado and avocado derivatives
• PEST analysis to illustrate the efficacy of buyers and suppliers operating in the avocado and avocado derivatives industry
• Recent developments to understand the competitive market scenario
• Market trends and outlook, as well as factors driving and restraining the growth of the avocado and avocado derivatives market
• Assistance in the decision-making process by highlighting market strategies that underpin commercial interest, leading to the market growth
• Size of the South America avocado and avocado derivatives market at various nodes
• Detailed overview and segmentation of the market, and the avocado and avocado derivatives industry dynamics
• Size of the South America avocado and avocado derivatives market in various regions with promising growth opportunities

Company Profiles

• Westfalia Fruit Pty Ltd
• Salud Foodgroup Europe BV
• Exportadora Propal SA
• Berje Inc
• Lemonconcentrate SLU
• Avocado Brasil Comercio de Alimentos Ltda
• ConnOils LLC
• Mission Produce Inc
• Calavo Growers Inc
• MERIDIAN FRUITS SPR de RL de CV

Report Scope

South America Avocado and Avocado Derivatives Market Regional Insights

The regional trends and factors influencing the South America Avocado and Avocado Derivatives Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses South America Avocado and Avocado Derivatives Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

South America Avocado and Avocado Derivatives Market Report Scope

South America Avocado and Avocado Derivatives Market Players Density: Understanding Its Impact on Business Dynamics

The South America Avocado and Avocado Derivatives Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the South America Avocado and Avocado Derivatives Market are:

1. Westfalia Fruit Pty Ltd
2. Salud Foodgroup Europe BV
3. Exportadora Propal SA
4. Berje Inc
5. Lemonconcentrate SLU

Disclaimer: The companies listed above are not ranked in any particular order.