Guacamole Market

Guacamole Market Outlook (2023-2033)

The historical period assessment of the global guacamole market showed significant sales and a growth rate of 6.2% during (2018-2022). The market value has increased and registered sales of US$ 1,376.4 Mn in 2023.

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Guacamole Consumption Analysis (2018-2022) Vs. Market Estimations (2023-2033)

The global guacamole market has witnessed significant growth in the historical period registering a CAGR of 6.2% in the historical period and was valued at US$ 1,376.4 Mn in 2023. Though demand for organic guacamole is increasing worldwide, conventional guacamole will still hold over more than 90% market share over the next ten years.

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$ 2,576.8 Mn by the end of 2033.

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What are the Key Trends in the Market for Guacamole?

“Increasing Popularity of Sports Events Such as Super Bowl.”

With the best fan base, soccer/football is the most popular game in the world. When a sports event takes place, it is also the highest Target Rating Point (TRP) grocer on television and the most watched on the field as well. It is so popular in the U.S. that demand it is declared a national holiday. Events such as the Super Bowl calls for outrageously high consumption of snacks and the most popular is Guacamole.

It has come out to be the most widely consumed food product significantly in contemporary American culture, even though the event does not take place during the typical growing season of avocados. The growing popularity is due to its multiple edible uses and easy digestion as mostly there is no physical activity of the body involved during such gaming events.

• According to an estimate Super Bowl viewers consumes almost 50,000 MT of guacamole on average and the average avocado import is about 80 MT a day. This makes the Super Bowl event the biggest single consumption day for guacamole.

“Growing 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, 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 contains simpler ingredients that are plant-based in its preparation. This is allowing manufacturers to sell their products at competitive pricing.

• Calavo Growers Inc. collaborated with Apeel for increasing the shelf life of its avocados. Apeel is the creator of the plant-based solution, which enhances the shelf life of avocados and other types of produce.

“Increasing Popularity of Dips to Augment Sales of Guacamole”

Guacamole is among the top 10 most popular dips in the U.S. with an ever-increasing fan base. The dips are usually accompanied by chips and are used on numerous occasions for entertaining guests, leisure snacks, and others. The country even has a national chip and dip day, which is celebrated on March 23 annually. The dominance of Mexican dips in the American marketplace is aiding its growth in the region. The versatility of guacamole is not limit its use to chips but can also be utilized for vegetables and fruits. The recent flavor innovations have made these dips to be roaring ahead of conventional sauces.

• According to the recent estimate by the U.S. Census data and Simmons National Consumer Survey (NHCS) more than 190 Mn Americans used dips for snacks and vegetables in 2020 and the numbers are increasing at a steady pace with the growing popularity and consumption of chips and dips in the country.

“Increased Subsidization of Research and Development to Increase Growth Opportunities for Guacamole Manufacturers”

R&D in food manufacturing and processing is a product and process improvement by utilization of the latest technological developments and food & safety procedures. This not only employs product innovation but also aids in the reduction of processing costs. Apart from plant operation cost reduction, it can also aid in improving logistics and transport cost cutting. Almost all guacamole manufacturers use this to adapt their products to shifting consumer tastes and enhance the distribution channel.

The employment of technology and the latest food safety procedures have slightly reduced the cost. Energy cost cutting, sustainability, and environmental concerns are taken care of by the industry with the funding of R&D. The innovation is also being carried out in bio-friendly packaging.

• According to the data published by the American Chemistry Council (ACC), a growing number of consumers today consider the recyclability of the product along with its quality and price. More than 80% of consumers want manufacturers to provide environmentally stable products.

“High Calorie and Allergic Reactions May Affect Guacamole Consumption”

Green gold has many advantages but also comes with certain disadvantages, which can only affect a minor group of the population. Avocado is a high-calorie fruit containing up to 230 calories and about 50 grams of fat, which may affect guacamole consumption in fitness-centric groups and people who are trying to lose weight. In addition, if consumption is managed in the right proportions, it may not add up to many calories to the body.

Another group of the population includes people who are allergic to latex, tomato, kiwi, and bananas and are advised not to consume this fruit or its derived products as this may increase the serum IgE levels in the body and produce allergic reactions. People who are allergic to fruit restrict the use of guacamole in their diet.

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Country-wise Insights

Which Country in Latin America accounts the Largest Market Share for Guacamole during the Forecast Period?

Mexico is the world's largest exporter and producer of avocado, capturing more than 50% of the Latin American guacamole market. Guacamole is also a Mexican preparation, and major manufacturers offer it in their Mexican-themed product offerings.

The popularity of Mexican foods in other parts of the world is also helping guacamole's market expansion. Furthermore, the key market participants are all located in North America, where local production of the raw material is diminishing, and trade relations between the two regions have made Mexico a hotspot for guacamole makers to either buy raw materials or set up processing facilities.

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

What is demand outlook for Guacamole in China?

China holds a major share of more than 70% in the East Asian market for guacamole and is anticipated to expand at significant rate of about 8.9% over the forecast period. 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.

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Category-wise Insights

Which Nature of Guacamole is Expected to dominate the Market?

Organic guacamole sales are anticipated to expand at over 7.2% CAGR, registering significant growth when compared with conventional guacamole.

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

Increased demand for organic-labelled foods has pushed major producers to invest in research and development and meet with the most recent regulations in to ensure broad adoption and high profitability from their product. These trends point to a positive global market expansion for guacamole, particularly organic guacamole, as a result of organic methods in fruit production and processing.

How are Various Distribution Channels Offering Sales Opportunities for Guacamole Suppliers?

Sales of guacamole are increasing through business to consumer segments at a rapid rate. The online retail segment is witnessing a high growth rate among the business to consumer channels, at a CAGR of 7.7%, followed by specialty stores, convenience stores, and hypermarkets/supermarkets owing to the increasing demand of avocado fruits in online retail channel.

Competitive Dashboard

Manufacturers are expected to witness growth for use in the retail/household sector, owing to growing popularity of avocado and avocado-based products. Some of the key players such as General Mills, Inc., Conagra Brands Inc., McCormick & Company Inc., UTZ Brands Inc., and Verfruco Foods Inc., among others 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. The latter are engaged in the business of providing guacamole, operate at small scale, and are more export-oriented.

• In February 2021, Verfruco Foods Inc. launched its individually sized mini guacamole for the ease of carrying and attracting children for the consumption of its refrigerated guacamole.
• In 2021, Frutas Montosa’s collaboration with Mercadona has led to its marketplace growth domestically. The abundance of avocados has led companies such as Frutas Montosa, which is dedicated to cultivation and commercialization of its subtropical fruits to take an important step towards their transformation into this typical Mexican recipe named Guacamole.
• In 2020, Westfalia Fruit Group launched its two new rootstocks after testing avocados in different infection pressure conditions, to sustain the raw material for making guacamole.
• In August 2020, UTZ Brands announced its latest creation, guacamole flavored tortilla chips. This was experimented keeping in mind the growing demand for avocado-based products in smart consumers.

Guacamole Industry Report Scope

Guacamole Industry Research by Category

By Nature:

• Organic
• Conventional

By Flavor:

• Unflavored/Plain
• Flavored

By End Use:

• Food Processing Industry
• Foodservice Industry
• Retail/Household

By Distribution Channel:

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

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa