The growth in avocado oil production is directly linked to the global expansion of avocado consumption as a fresh fruit. According to data from the Food and Agriculture Organization of the United Nations (FAO), global avocado production has more than tripled since the beginning of the 2000s, driven primarily by Latin America and Africa. This increase has strengthened the availability of raw materials for industrial uses, including avocado oil.

However, the FAO also shows that the primary destination for avocados remains fresh consumption, while processing represents a smaller fraction of the supply chain. Unlike traditional oilseed crops, avocados are not produced primarily for oil extraction, which limits the available volume and continuity of supply.

From an industry perspective, this reality is clearly visible. Sergio Perez-Borbujo, managing director of Avoil World, points out that “the avocado oil market is evolving very strongly, with a marked demand driven by the avocado's perceived health benefits .” Added to this is the context of olive oil, whose price fluctuations have created new opportunities: “The price volatility of olive oil has led markets like China, which historically did not consider avocado oil, to now begin investing in it . ”

Prices, retail and its position compared to olive and coconut

Analysis of the vegetable oil market reveals significant differences in scale. According to the International Olive Council (IOC), olive oil represents approximately 1% of total vegetable fats consumed worldwide, despite having a highly structured industry and millions of hectares dedicated exclusively to olive groves, especially in Spain.

In contrast, avocado oil is several orders of magnitude smaller in volume. This structural difference limits its ability to compete directly with olive oil in terms of global supply and price stability. Perez-Borbujo summarizes it this way: “Although olive oil is already small within the global fats market, avocado oil is even smaller; it doesn't compete in volume or structure . ”

In the retail channel, this tension is even more pronounced. While raw materials have become more expensive, the final price of avocado oil doesn't always reflect that increase. "The raw materials are very expensive, and yet the finished product is found at lower prices ," explains the executive. This discrepancy has led to a proliferation of blends with other vegetable oils, a practice that, while legal under certain regulations, creates a very heterogeneous offering for the consumer.

Coconut oil, on the other hand, follows a different logic. According to data from the World Bank Commodity Markets Outlook (Pink Sheet), coconut oil behaves like a commodity, with prices highly influenced by global supply and applications that extend beyond food consumption, including industrial and cosmetic uses. Its fatty acid profile and market positioning place it in a different segment than avocado and olive oil.

A growing market, but with its own rules.

The rise of avocado oil confirms that the vegetable oil market is far from static. The combination of demand that values the health benefits of avocados and price adjustments in traditional oils has opened up real opportunities for its development, even in markets where it was not considered until a few years ago.

However, official data and industry insights agree on one key point: avocado oil doesn't operate under the same logic as the world's major oils. Its availability depends on the fresh fruit market, its scale is limited, and its role within the supply chain remains complementary. Rather than competing in volume with olive or coconut oil, its challenge lies in consolidating a clear positioning, with quality standards, transparency regarding its ingredients, and a value proposition consistent with its origin.

In that balance —between growing demand, production constraints and retail demands— the future of avocado oil is defined: not as a mass substitute, but as an oil that finds its place when the market understands its limits and also its potential.