South America Avocado and Avocado Derivatives Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Type (Whole, Oil, Puree, and Others), Category (Organic and Conventional), and Application (Food & Beverages, Pharmaceuticals & Nutraceuticals

South America Avocado and Avocado Derivatives Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Type (Whole, Oil, Puree, and Others), Category (Organic and Conventional), and Application (Food & Beverages, Pharmaceuticals & Nutraceuticals, Personal Care, and Others)

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.

Organic and natural products are gaining significant popularity owing to their perceived health benefits. People in South American countries are highly concerned about their health and wellness and pay more attention to ingredients used in processed products. They are willing to pay high prices for products that are free of synthetic ingredients. Thus, industries such as personal care, food & beverages, and pharmaceutical are incorporating plant-based ingredients such as avocado-based oil, powder, and extract into their products.

With a focus on holistic and conscious food consumption, consumers prefer products made with natural and ethically sourced ingredients. According to a study commenced by Symrise in August 2020, ~43–49% of the surveyed consumers from Mexico, Argentina, Brazil, and Colombia were willing to pay more for products with natural ingredients. Avocado is a natural ingredient that has high nutritional value. It is enriched with vitamins (B, K, C, and E), potassium, carotenoids, and phytosterols. Moreover, using natural substances for cosmetics manufacturing, which have no adverse effects on the skin, is a common approach of manufacturers to attract more customers. Thus, increasing demand for natural ingredients among various end-use industries further creates a lucrative growth opportunity for the avocado and avocado derivates market.

The COVID-19 pandemic had a mixed impact on the South America avocado and avocado derivatives market. Before the onset of the COVID-19 pandemic, the rising demand for food and beverages, pharmaceuticals and nutraceuticals, and personal care products made with 100% natural ingredients has been a prime contributor to the avocado and avocado derivates market growth in South America. The rising awareness of the health benefits of avocado consumption is also contributing to the market growth. However, after the COVID-19 outbreak, South American countries experienced severe disruption in supply chains in early 2020 due to lockdowns and trade restrictions, which created food insecurity and hampered the activities of avocado-based product manufacturers. The lockdown and border restrictions imposed by governments of South American countries during the COVID-19 pandemic adversely affected the agri-food supply chains in Brazil, Chile, Argentina, and Colombia. Avocado growers and suppliers suffered significant economic losses during the first wave of the pandemic due to trade restrictions and processing unit shutdowns.

Moreover, 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.

Westfalia Fruit Pty Ltd, Salud Foodgroup Europe BV, Exportadora Propal SA, Berje Inc, Lemonconcentrate SLU, Avocado Brasil Comercio de Alimentos Ltd, 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 players are adopting product innovation strategies to acquire a large number of consumers in the region.

The overall South America avocado and avocado derivatives market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights into the topic. The participants of this process include VPs, business development managers, market intelligence managers, national sales managers, and external consultants—such as valuation experts, research analysts, and key opinion leaders—specializing in the South America avocado and avocado derivatives market.

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