Avocado Oil Industry Disrupts Global Market with Rapid Growth and New Competition

The global avocado market is undergoing significant changes as the rapid growth of the avocado oil industry has transformed it into a new structural buyer of raw material, capable of competing directly for fruit and influencing prices.

For years, the sector's pace was determined by fresh production, while frozen fruit, guacamole, and oil absorbed fruit that couldn't be sold fresh. However, this balance is shifting as the avocado oil industry seeks its own supply, buying directly in the field and paying cash for fruit with commercial characteristics that the fresh market and frozen industry would not accept.

This shift has led to increased competition for raw materials, driving up prices even though demand for oil is beginning to exceed supply. The high margins of recent years have motivated the setting up of many new factories, but this rapid growth is also generating significant imbalances in the sector.

Enrique García, president of the Avocado Oil Manufacturers Association (AOMA), believes that the future of avocados will be decided by how the fresh, frozen, and oil industries interact. He warns that companies can no longer make strategic decisions without understanding what's happening in this sector and suggests that they need to stop thinking of oil as a by-product industry.

García also highlights the importance of addressing the weaknesses in the sector, including quality, authenticity, processes, standards, and poor practices. To address these issues, the first International Avocado Oil Congress will take place in Seville from October 29 to 31, 2026, bringing the entire supply chain together to share knowledge and lay the foundations for a stronger, more transparent global sector.