During Q1’26, avocado oil prices remained balanced as a stronger avocado supply offset pressure from elevated freight and logistics costs. USDA projected Mexico’s avocado production to rise by nearly 3% to around 2.8 million metric tons in 2026, while exports were forecast to increase by approximately 7% to about 1.3 million metric tons, supported by sustained global demand and improved growing conditions. Improved fruit availability reduced feedstock tightness for avocado oil manufacturers, particularly in North America, where Mexico remained the primary supply base. Demand from cooking oils, salad dressings, premium food products, cosmetics, skin care formulations, and nutraceutical applications stayed stable throughout the quarter, although buyers maintained cautious procurement due to sufficient inventories. Freight and insurance costs increased significantly after the Iran war and Strait of Hormuz disruption, raising transportation and packaging costs across agricultural supply chains and limiting deeper market corrections. Export-oriented producers also faced higher logistics expenses due to elevated marine war-risk premiums and vessel disruptions in global shipping routes.
Analyst Insight
According to Procurement Resource, avocado oil prices are expected to remain stable to slightly soft due to improving avocado supply conditions, though continued freight and input-cost volatility may prevent sharper declines.
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In 2025, avocado oil prices showed a mixed but mostly firm trend due to changes in supply, rising demand, and trade developments in the global avocado market. The market was influenced by strong interest in avocado-based products and growing investment in value-added processing, as companies focused on turning unsold or lower-grade avocados into oil. This supported production and helped maintain steady market activity throughout the year. Rising demand for healthy edible oils and sustainable ingredients also supported avocado oil consumption in food, cosmetics, and personal care industries.
At the same time, avocado supply conditions affected price movement. Large avocado shipments from Latin America increased competition in some regions and created temporary pressure on raw avocado prices, while drought and lower crop sizes in key producing countries reduced the availability of high-quality fruit. Trade tensions and tariff discussions, especially in major importing countries, added uncertainty to the market and influenced buying behaviour. Companies also focused on improving supply chains and expanding production capacity, which helped stabilize supply and kept avocado oil prices relatively firm despite market fluctuations.
Avocado Oil is an edible oil pressed from the fruit of the avocado tree. It is utilised as an ingredient in several dishes, and as a cooking oil. It can also be used for other purposes like lubrication and in cosmetics, where it is valued for its supposed regenerative and moisturising properties.
It has a high smoke point and it is a good source of monounsaturated fats and vitamin E. Avocado Oil is characterised by emerald green colour. The refined Avocado Oil barely has a smell, but the unrefined Avocado Oil smells nutty.
High-heat cooking application, Baking, Moisturiser, Lubrication, Cosmetics
Avocado oleum, Persea gratissima oil, Glyceridic, Lipovala
Sesajal S.A. de C.V, Bella Vado, Inc, Chosen foods LLC., Grupo Industrial Battellero S.A. de C.V
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In order to produce Avocado Oil, ripped avocado is pressed and the oil is recovered from it mechanically. The skin and stone (seed) is removed and after this, the flesh is ground to a paste and then malaxed for 40-60 minutes and 45-50°C.
Neha Gawande
Senior Lead Analyst
Delivering procurement intelligence and commodity research across automotive, oil & gas, chemicals, aerospace, and energy, helping sourcing teams decode complex supply chain data to sharpen purchasing strategies and achieve sustainable cost outcomes.
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