Demand for healthy oils has fueled the growth of avocado oil in the United States and Europe. Although Mexico, Kenya, and South Africa lead production, the sector still faces challenges in terms of scale and price to compete with giants like olive and coconut oil.

Avocado oil has gone from being a niche product to a rapidly expanding category within the premium oil market. Its growth is directly linked to the global avocado boom. According to the Food and Agriculture Organization of the United Nations (FAO), global avocado production exceeded 8.1 million tons in 2020, with Mexico contributing approximately 30% of the total. This leading position allows the country to also establish itself as one of the main producers and exporters of avocado oil.

The processed oil market is not limited to Mexico either. A sector study published by COLEAD in 2024 identifies Kenya and South Africa as key players in the production of oil for both food and cosmetics. Furthermore, countries like Peru, Chile, and Colombia have become key suppliers for the European industry, where demand for natural oils is booming, according to reports from the European Union's Centre for the Promotion of Imports (CBI).

The United States is currently one of the most dynamic consumer markets. A 2022 Agriculture and Agri-Food Canada report shows that online sales of cooking oils increased from 3.2% in 2017 to 10% in 2022, boosting emerging categories such as avocado oil. In Europe, media outlets like The Guardian report that premium foods—mayonnaise, sauces, and dressings—are incorporating avocado oil to differentiate themselves in the gourmet segment.

The product's price confirms its positioning. Figures from the IMARC Group report indicate that, towards the end of 2024, the export price of avocado oil in Mexico was around US$14,220 per ton, while the retail price in the United States reached between US$12 and US$15 per 500 ml, according to the consulting firm Intel Market Research, representing a premium of up to 400% compared to other conventional oils.

Can it compete with olive oil and coconut oil?

From a nutritional standpoint, yes. Avocado oil is rich in oleic acid, the same acid found in olive oil, making it a heart-healthy alternative. Studies cited by the PMC biomedical database describe a ratio of unsaturated to saturated fats close to 7:1. For olive oil, the United States Department of Agriculture (USDA) estimates around 73 grams of monounsaturated fats per 100 grams, very similar figures. The same cannot be said for coconut oil: the University of Florida (UF/IFAS) indicates that approximately 86% of the fats in a tablespoon of coconut oil are saturated, placing it in a different nutritional profile.

But outside the health sector, the competition is more complex. Olive and coconut oils have well-established production chains, with decades of industrial development and much lower costs per ton. The Philippine government’s “Coconut Industry Roadmap 2021–2040” details how the coconut industry enjoys high competitiveness due to its enormous scale. In contrast, as COLEAD points out, only a small fraction of global avocado production is used for oil, as the fresh market remains more profitable. This limits supply and keeps costs high.

The result is clear: avocado oil does compete , but only in niche markets . In cooking, it stands out for its high smoke point, healthy profile, and neutral flavor. In natural cosmetics, it competes directly with olive, argan, and coconut oils, driven by European consumers' preference for natural ingredients, as the CBI has indicated. However, its price and availability limit its widespread adoption.

Avocado oil is establishing itself as a new player in the premium oil market. Its growth in the United States and Europe, coupled with interest from producers in Latin America and Africa, demonstrates its potential for expansion. However, its competition with olive and coconut oil will, at least for now, be more a battle for high-value niches than for volume dominance. Future success will depend on the ability to increase production efficiency, expand supply, and maintain its appeal as a healthy and versatile oil.