Guacamole Market: Technological Advancements in farming to boost the market growth

The Guacamole Market size reached USD 1.6 billion in 2021 and is expected to reach USD 3.24 billion by 2029, growing at a CAGR of 9.2 % during the forecast period.

Guacamole is a thick or semi-liquid avocado paste prepared with chopped tomatoes, onions, chili peppers, and spices. Guacamole is a great source of potassium, antioxidants, and healthy fats, and offers numerous health benefits. It is used in modern Mexican cuisine, it has become part of International and American cuisine as a dip, condiment, and salad ingredient. Guacamole is becoming very popular in the U.S. because of the increasing consumption of fast food items and the health benefits that it offers, which is expected to increase the demand for guacamole during the forecast period.

Mexico is the world's largest producer and exporter of avocados, accounting for more than half of the Latin American guacamole industry. Guacamole is also a Mexican preparation, and many manufacturers provide it in their Mexican-focused product ranges. The popularity of Mexican foods in other regions across the world is also helping the growth of the guacamole market. Major market players are also focusing on 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 purchase raw materials or set up processing plants. Manufacturers have set up processing plants in the Mexican region due to cheap technological availability, availability of raw materials, and considerable processing capabilities.

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Guacamole Market Dynamics:
Growing preferences for healthy and wholesome foods to increase the Guacamole Market growth

Growing demand for plant-based products has forced many manufacturers to look for alternatives to conventional ingredients, to make the products suitable to the new shift and gain maximum profitability. Plant-based diets increase gut health, allowing for better nutrient absorption and improving the immune system. Guacamole is a direct derivative of the avocado fruit, and its preparation utilizes simpler plant-based ingredients. As a result, manufacturers can sell their products at competitive rates. US avocado consumption hit a record at the beginning of 2021 because of the growing economy and positive perception of the trendy superfood. The demand for avocados peaks during specific events and holidays due to the increasing use of avocados beyond guacamole and avocado toast. Demand for guacamole mayo, guacamole spreads, and guacamole salad dressings is already on the rise. The Internet of Things and the media are likely to raise awareness about the benefits of guacamole. The growing popularity of dips and healthy snacks among individuals are two important factors that are expected to influence future market growth opportunities for this global Guacamole industry.

Growing Consumption Trends to drive Guacamole Market growth

The Guacamole market is majorly driven by the rising inclination towards healthier lifestyles. The increasing awareness regarding the importance of consuming a balanced diet is also positively impacting Guacamole consumption. The widespread popularity of vegan diets and the easy availability of avocados via online retail channels are providing an impetus to market growth.

Guacamole sales spike around Super Bowl Sunday and Americans consume nearly 80 million pounds of avocados on this national holiday in the form of Guacamole. Guacamole has grown common in grocery shops and households across the United States. Avocado consumption continues to grow due to its broad appeal for nutrition and diversity among many types of cuisine. Topping salads and being rolled into wraps, it is added to a variety of appetizers such as deviled eggs, potato skins, tacos, and even egg rolls. It's also a tasty addition to pasta and grilled fish meals, fajitas, soup, and other types of food.

The Mexican sector continues to develop in both retail and food service as people become more comfortable consuming guacamole. Guacamole is also available in packaged refrigerated products. California has the greatest chance for development in packaged guacamole, which can be attributed to consumers making their own guacamole at home. Therefore, Guacamole has become more common in consumer homes, leading to consumers seeing more ways to enjoy the dish, even on an everyday basis. Manufacturers have invested in the latest cold-press technology such as high-pressure processing for retaining the taste and seasonality of guacamole. Some of the key players are also investing heavily in ensuring the freshness of the raw material, i.e., avocado to prepare high-quality guacamole to increase their product portfolio, which is providing a considerable thrust to the Guacamole market.



Estimated avocado consumption in Europe in 2020


Country
Consumption in tonnes


Netherlands*
23243


Belgium
13165


Denmark
16374


France
144015


Germany
104452


Switzerland
18836


United Kingdom
100913



Guacamole Market Restraint

Avocados are expensive, putting them out of reach for the middle-income group and posing a huge threat to the guacamole market. Avocado prices from the Mexican state of Michoacán have jumped 82% in 2022 to $38 for a 20-pound box. Many customers believe avocados are too perishable to buy, and efforts to keep them fresh for an extended period of time pose an additional hurdle to their adoption. Though there is a significant demand for avocados, maintaining supply and managing a highly perishable commodity with a short shelf life that can result in food waste are some of the challenges affecting the guacamole market.
Guacamole Market Segment Analysis:
Based on Nature, Organic guacamole sales are expected to grow at a CAGR of over 8.2% during the forecast period. The rising environmental awareness among modern customers, as well as new food and safety standards, are the major factors for the growth of this segment. Increased demand for organic-labeled foods has prompted major companies to invest in R&D while also adhering to the most recent legislation in order to ensure broad acceptance and high profitability from their products. Because of organic techniques in fruit production and processing, these trends indicate favorable international market growth for organic guacamole.

Based on Form, the Frozen segment is expected to grow at a significant CAGR during the forecast period. The frozen form of Guacamole retains all the organoleptic characteristics such as flavor, color, aroma, and nutrients, without the use of additives or preservatives. Freeze Dried Guacamole can be rehydrated instantly just by adding cold water. It is a shelf-stable product that does not require refrigeration before opening, which makes it extremely convenient for retail consumers.

The Guacamole market is also dominated by the ready-to-make segment with the highest market share in 2021. The Ready-to-make form is more economical to produce and required lesser preservatives and is the closest in taste as compared to fresh guacamole. However, the ready-to-make segment of guacamole also had less shelf life.

Based on Application, the Food Services segment held a significant CAGR in 2021. Guacamole is a heart-healthy source of cholesterol-free fat, which has led to greater interest in the incredibly popular dip. Increasing demand for customization and innovation in food menus is a primary key driver for segment growth.
Guacamole Market Regional Insights
In North America, the Guacamole market accounted for the highest revenue share in 2021. The guacamole was invented in Mexico and swiftly spread around the world. Furthermore, it is made using Avocados, which are commonly harvested in Mexico and the United States of America. These reasons have fueled the growth of the Guacamole market in North America. As a result of greater globalization, the guacamole industry is rapidly growing throughout Europe, resulting in guacamole being used in various international cuisines and used as salad dressings in addition to traditional Mexican cuisine. The health advantages of avocados together with an increase in average avocado consumption are expected to fuel the growth of the Guacamole market throughout the forecast period.



The Asia Pacific region dominated the global Guacamole market share in 2021. Guacamole is used in Chinese cuisine to improve the flavor and texture of bread, dumplings, seafood, vegetables and fruits, potato chips, tortilla chips, pork, and cheese. Sauces and dips have always played an important role in the country's daily cuisine. Furthermore, new trends and shifting lifestyle choices have allowed consumers to try new foods, resulting in higher average food spending.

This study focuses on the major driving factors and restraints that affect the Guacamole market. Global and regional players in the Guacamole industry are discussed in depth, including revenue data and market share information. The Guacamole market analysis includes trends in Guacamoles, information about the potential market and needs, and lists of potential competitors. MMR has segmented the global Guacamole Market report based on Nature, Form, Application, Distribution Channels, and region. The report contains strategic profiling of top key players in the market, a wide-ranging analysis of their core competencies, and their strategies like new product launches, growths, agreements, joint ventures, partnerships, and acquisitions that apply to the businesses. Our team of analysts can also provide you with data in excel files and pivot tables or can assist you in creating presentations from the data sets available in the report.
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Guacamole Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 1.6 Bn.


Forecast Period 2022 to 2029 CAGR:
9.2 %
Market Size in 2029:
US $ 3.24 Bn.


 Segments Covered:
by Nature
• Organic
• Conventional


by Form
• Frozen
• Dried
• Ready-to-Eat


by Application
• Food Processing Industry
• Food Service Industry
• Households


by Distribution Channels
• Supermarkets/Hypermarkets
• Convenience Stores
• Online
• Others



Guacamole Market, by Region
• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America
Guacamole Market Key Players are:
• 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

FAQs:

1. Who are the key players in the Guacamole market?
Ans. Calavo Growers, Salud Food Group, Frontier Co.op, Avo King, and Curation Foods are some of the market players in the Guacamole industry.

2. Which Nature segment dominates the Guacamole market?
Ans. The Organic segment accounted for the largest share of the global Guacamole market in 2021.

3. How big is the Guacamole market?
Ans. The global Guacamole market size reached USD 1.6 billion in 2021 and is expected to reach USD 3.24 billion by 2029, growing at a CAGR of 9.2 % during the forecast period.

4. What are the key regions in the global Guacamole market?
Ans. Based On the region, the market has been classified into North America, Europe, Asia Pacific, Middle, East and Africa, and Latin America. Asia Pacific dominates the global Guacamole market.