Guacamole Market

Global Market Study on Guacamole: Unflavored Guacamole to Witness Higher Demand Compared to Flavored Variants

Market Snapshot

As per global guacamole industry analysis, the market is projected to race ahead at around 7% CAGR through 2031 and top a valuation of US$ 2.3 Bn. Though demand for organic guacamole is increasing across the world, conventional guacamole will still hold over 90% market share over the next ten years.

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Companies

  • Westfalia Fruit Group
  • Calavo Growers INC.
  • Conagra Brands
  • Frutas Montosa
  • Hope Foods LLC
  • Garlic Festival Foods
  • MPK Foods
  • Chosen Foods LLC
  • Good Foods Group

Key Points Covered in Guacamole Market Survey:

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, country-wise, and region-wise analysis
  • Competition mapping and benchmarking
  • Brand share and market share analysis
  • Key product innovations and regulatory climate
  • COVID-19 Impact on guacamole and how to navigate
  • Recommendation on key winning strategies

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Sales Analysis of Guacamole from 2016 to 2020 Compared to Future Market Outlook for 2021 to 2031

As per guacamole industry research, from 2016-2020, the market expanded at the rate of 5%. Sales for use in household accounted for more than 45% by the end of 2020, with optimistic growth trends in near future. This converges to growing popularity of avocados as a wholesome fruit and the health benefits that it offers to consumers.

Further, increased technological advancements related to enhancing the seasonality of guacamole have also helped in propelling its consumption Moreover, rising trend of plant-based diets in developing countries such as India, China, Indonesia, and Thailand are anticipated to propel demand for guacamole from the retail sector, with value expected to reach close to US$ 264.8 Mn by the end of 2031.

Overall, the market is expected to expand at a value CAGR of around 7% through 2031.

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Why is Guacamole Convenient for the Retail/Household Sector?

The need for convenient meals is increasing due to rising urbanization and a dominating work-centric population. These factors call upon the need for meals that require minimal cooking time and energy. Guacamole is ideal for this purpose.

Another factor is the high shelf life, and in this respect, manufacturers have invented in latest cold-press technology such as high-pressure processing for retaining the taste and seasonality of guacamole. Some of the key manufacturers are also investing heavily in ensuring the freshness of the raw material, i.e., avocado, to prepare high-quality guacamole.

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Why is Utilization of Guacamole High at Sporting Events?

Insights into the guacamole market reveal that, demand for guacamole is the highest on sports days such as the Super Bowl, which is also estimated to be the highest single-consumption-day of the year. It is the most widely consumed food product during sports events, significantly in contemporary American culture, even though the event does not take place during the typical growing season of avocados.

Growing popularity is due to multiple uses and easy digestion that guacamole offers, as mostly, there is no physical activity of the body involved during such gaming events. Many manufacturers are using this as an opportunity and are drawing plans on how to use it to enhance their sales. This not only comes out to be a good marketing strategy but also a good sales opportunity for manufacturers.

Will Increasing Demand for Plant-based Foods Favor Guacamole Manufacturers?

Growing demand for plant-based foods has forced major manufacturers to look for alternatives to conventional ingredients, so as to make their products suitable to the new shift and gain high profitability. This has also increased focus on maintaining the quality of crops and intensifying production on current croplands.

Plant-based diets improve gut health, which enables better absorption of nutrients, and hence, improves the immune system. Guacamole is a direct derivative of the avocado fruit, and also contains simpler ingredients that are plant-based in its preparation. This is allowing manufacturers to sell their products at competitive pricing.

  • Landec Corporation is working on developing more products to keep pace with the demand for plant-based products, for people who are not necessarily vegetarian and vegan, but prefer a majority of their meals to be plant-based.

How is Increasing Consumption of Avocado Benefitting Guacamole Manufacturers?

In the North American region, which is a major consumer and producer of guacamole, per capita consumption of avocado tripled from 2001 to 2018. Even though there has been a decline in domestic production of the fruit, still, high demand has forced major manufactures to import from nearby countries such as Mexico, and process the fruit to produce guacamole.

Surge in demand for avocado and avocado-based products all converges to the health benefits and the versatile nature of this fruit. It has successfully served as a healthier and tastier alternative to conventional food choices.

For a product that is a direct derivative of avocado, its growing popularity and increasing demand is creating new lucrative business opportunities for guacamole manufacturers.

What are the Factors Restraining Growth of Guacamole Suppliers?

The foremost factor is the high price of guacamole due to the raw material, which is avocado. The fruit itself is expensive due to high requirements of irrigation and high demand in the global market.

High demand and seasonality of the fruit have led to an increase in its price to 19 cents per pound in 2017. Increasing consumption of the fruit owing to its health-related benefits is also resulting in increased prices for guacamole.

Ripening and spoilage of the fruit is also a major concern. The fruit, if left untouched for long, may get oxidized and develop a brown layer, which leads to fast ripening and spoilage.

The growing, distributing, and preparing of guacamole comes at a high cost. Hence, people in the foodservice industry prefer low-cost alternatives such as sweet potato hummus or avocado-less guacamole, which is affecting its consumption.

Furthermore, the population allergic to the fruit is also resulting in negligible utilization of guacamole and affecting its marketplace. Also, people who prefer low-calorie diets are showing less interest in the fruit.

guacamole-market

Country-wise Insights

Why Does Mexico Account for the Largest Market Share for Guacamole in Latin America?

Mexico is the largest producer and exporter of avocado in the world, and accounts for more than 50% of the guacamole market in Latin America. Also, guacamole is a Mexican preparation, and major manufacturers are providing it under their Mexican-dedicated product ranges.

The popularity of Mexican foods in other regions across the globe is also aiding the market expansion of guacamole. Moreover, major market players are all concentrated in the North American region, where domestic production of the raw material is declining and trade relations between the two regions have made Mexico a hotspot for guacamole manufacturers to either acquire raw material or set up processing plants.

Many manufacturers have set up processing plants in the Mexican region due to cheap technological availability, surplus raw material, and considerable processing capabilities.

What Makes China a Lucrative Market for Guacamole Manufacturers?

The market for guacamole in China is surging ahead at a CAGR close to 9%, and the country accounts for around 70% of the market share in East Asia.

A dip in Chinese cuisine is a common condiment for several foods, and guacamole is utilized as flavor and texture additives for bread, dumplings, seafood, vegetables & fruits, potato chips, tortilla chips, meat, and cheese. The country has historical importance for sauces and dips in its daily cuisine.

Furthermore, evolving lifestyle choices and new trends have enabled people to explore new food types with increasing average expenditure on the same. Guacamole has anticipated potential to have a market expansion in the country. With improving living standards, a food that is regarded as aspirational has a good chance for utilization in Asian countries such as China.

Category-wise Insights

How is the Organic Trend Benefitting the Market for Guacamole?

Through 2031, organic guacamole sales are anticipated to expand at over 7% CAGR, registering significant growth when compared with conventional guacamole.

However, the present market share of organic guacamole is less as compared to conventional guacamole. Increasing awareness about the environment among modern consumers and new food & safety regulations are shaping the future of organic guacamole.

Increase in demand for organic-labeled foods have forced major manufacturers to invest in research & development and also comply with the latest regulations so as to ensure wide acceptability and high profitability from their product.

These trends indicate optimistic market growth for guacamole, especially organic guacamole, globally, due to organic practices in fruit cultivation and processing.

How is Increasing Availability of Flavored Guacamole Shaping Market Growth?

As per guacamole sales forecasts, flavored guacamole is anticipated to register a global value of US$ 683 Mn and expand at a CAGR of over 6.3% through 2031.

There is a gradual shift and evolving trend to have a versatile product range to choose from. Demand for flavors offering the freedom of choice to consumers according to their taste preferences has forced major guacamole manufacturers to invest in research & development and come up with new flavors. Regional flavors are also set to attract more consumers in regional marketplaces.

  • Salaud Foodgroup Europe B.V. is providing around 8 flavors of guacamole in its product portfolio, including supreme, extra-supreme, western, pulp, deli extreme supreme, HPP natural, HPP western, and especial guacamole.

What is the Impact of COVID-19 on the Guacamole Industry?

The pandemic resulted in a low impact on the manufacturing of guacamole, owing to norms by governments that allowed the production of essential pharmaceuticals and nutraceutical products. Disturbed supply chain and trade flows created difficulty in sourcing raw materials for manufacturers of guacamole, and hence, they are expected to face a low to medium impact.

At the international level, wholesalers and distributors faced the aftermath of the pandemic owing to border closures. This made it impossible to export any product, resulting in high volumes of guacamole available for local sales and distribution purposes.

Competition Landscape

Manufacturers are expected to witness growth for use in the retail/household sector, owing to growing popularity of avocado and avocado-based products.

Key players such as MegaMex Foods LLC, Westfalia Fruit Group, and others are all targeting regional marketplaces by providing regionally dedicated guacamole to choose from or collaborating with major retailers and distributors to enhance market growth.

Furthermore, most manufacturers have integrated the cold press high pressure technology to improve shelf-life and retain taste. Manufacturers are also involved in continuous technical upgrades to improve their production volumes and efficiency.

  • In February 2020, MegaMex Foods LLC launched a new logo and purpose statement. This was done so as to mark the target for the next 10 years for the company to work on its product range and promote Mexican food in regions across the world.
  • In January 2021, Westfalia Fruit’s acquired majority shares in Hausladen Fruchthandel, aiming to capitalise on the German retail market and also expand its international presence as a pioneer in the global avocado business.
  • In March 2021, UTZ Brands Inc. announced an investment to expand its Florida DSD capabilities. The company is planning to purchase certain distribution rights in Florida from an existing third-party direct store delivery distributor, National Food Corp. This includes the acquisition of 21 DSD routes, which will generate robust growth in the company’s share of the salty snacks category across Central Florida, including Orlando, Tampa, and Sarasota.

Report Scope

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Mn for Value & Tons Units for Volume

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • The Middle East & Africa

Key Countries Covered

  • US
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Vietnam
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa

Key Market Segments Covered

  • Nature
  • Flavor
  • End Use
  • Distribution Channel
  • Region

Key Companies Profiled

  • MegaMex Foods LLC
  • Westfalia Fruit Group
  • Verfruco Foods INC.
  • Landec Corporation
  • UTZ Brands INC.
  • Conagra Brands
  • McCormick & Company INC.
  • The Bloch & Guggenheimer Foods INC.
  • General Mills INC.
  • Calavo Growers INC.
  • Sabra Dipping Co. LLC
  • Frutas Montosa
  • Salud Foodgroup Europe B.V.
  • Hope Foods LLC
  • Garlic Festival Foods
  • MPK Foods
  • Good Foods Group
  • Avomix
  • CG Produce
  • Chosen Foods LLC

Customization & Pricing

Available upon Request

Key Market Segments

Nature

  • Organic Guacamole
  • Conventional Guacamole

Flavor

  • Unflavored/Plain Guacamole
  • Flavored Guacamole

End Use

  • Guacamole for Food Processing Industry
  • Guacamole for Food Service Industry
  • Guacamole for Retail/Household

Distribution Channel

  • Business to Business
  • Business to Consumers
    • Hypermarkets/Supermarkets
    • Convenience Stores
    • Specialty Stores
    • Online Retail

FAQs Answered in Market Study

  • What is the overall market size for guacamole?

    The global guacamole market is set to be valued at close to US$ 1.2 Bn in 2021.

  • What is the sales forecast for guacamole over the next ten years?

    The global market for guacamole is projected to expand 2X over the decade to top a valuation of US$ 2.3 Bn in 2031.

  • At what CAGR has the market expanded in the past 5 years?

    From 2016 to 2020, the guacamole industry increased at a CAGR of 5.2%.

  • What are the key trends shaping the market for guacamole?

    Key market trends include increasing customer demand for ready-to-eat food, customer preference for plant-based products, and increasing demand for versatile foods, factors that benefit guacamole suppliers.

  • What is the market share of the top 5 players supplying guacamole?

    Top 5 players supplying guacamole include MegaMex Foods LLC, Sabra Dipping Co. LLC, The Bloch & Guggenheimer Foods Inc., Conagra Brands, and Hope Foods LLC, who together hold a market share of 20-30%.

  • What are the forecasts for the North American market?

    The North American market for guacamole is estimated to reach US$ 565 Mn by 2031-end, registering a CAGR of more than 6% over the said period.

  • Which are the top 5 countries driving demand for guacamole?

    Most of the global demand for guacamole comes from the U.S., Mexico, Brazil, Canada, and Spain.

  • Which countries are excelling in the European market?

    In 2021, Spain held the largest market share of 14.5% in Europe, while the market in Poland is expanding at the highest CAGR of more than 9%.

  • Which countries are key producers of guacamole?

    Key guacamole producing countries in the world are the U.S., Brazil, and Mexico.

  • Who are the main exporters of guacamole?

    Major guacamole exporting countries are the U.S. and Mexico.

  • What are the key market statistics for guacamole in Korea and Japan?

    Japan has a market value of US$ 17.5 Mn and is expanding at a CAGR of 9%, whereas, South Korea holds a market value of US$ 6.2 Mn, which is progressing at a CAGR of 9.7%.

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