PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1679242
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1679242
According to Stratistics MRC, the Global Guacamole Market is accounted for $339.40 million in 2024 and is expected to reach $532.63 million by 2030 growing at a CAGR of 7.8% during the forecast period. Guacamole is a well-known Mexican dip that is mostly made from mashed avocados combined with seasonings like salt and chilli peppers, lime juice, onions, tomatoes, and cilantro. Often served with tortilla chips, tacos, burritos, or as a garnish for other foods, guacamole is well-known for its rich, tangy flavour and creamy texture. Originally from the Aztecs, this wholesome spread is a tasty and advantageous addition to any meal because it is full of vitamins, fiber, and healthy fats. Moreover, as time has gone on, guacamole has evolved to include things like garlic, jalapenos, and even fruits like pomegranates and mangos.
According to data from the Food and Agriculture Organization of the United Nations, global avocado production reached approximately 8.98 million metric tons in 2022, with Mexico contributing over 28% of this total. In 2023, production increased to about 10.47 million metric tons.
Raising awareness of health
Customers are choosing healthier foods as they grow more conscious of the influence diet has on general health. Made mostly from avocados, guacamole is rich in monounsaturated fats, which are good for your heart. It is also high in antioxidants, potassium, and fiber, which help with weight management, cholesterol reduction, and better digestion. Furthermore, consumption of guacamole is further supported by the rise of health-conscious diets like the Mediterranean, keto, and paleo diets. The popularity of clean-label products has also prompted producers to provide guacamole with fewer preservatives and additives.
Variable avocado costs and supply chain interruptions
The availability of avocados is crucial to the guacamole market, and changes in avocado prices can have a big effect on production costs and profitability. Climate change, droughts, pests, and geopolitical concerns are some of the factors that affect avocado prices. For instance, weather-related disruptions, labor strikes, and export restrictions that impact supply chains are common in Mexico, the world's largest producer of avocados. Concerns about sustainability and deforestation have also arisen as a result of the strain that the growing demand for avocados worldwide has placed on agricultural resources. Moreover, seasonal fluctuations affect availability as well, leading to price volatility and making it difficult for producers to keep guacamole product prices constant.
Growth in vegan and plant-based diets
Globally, the trend toward plant-based diets is quickening due to sustainability objectives, ethical issues, and health concerns. Guacamole fits in well with this trend because it is a naturally plant-based and dairy-free product. It appeals to vegan, vegetarian, and flexitarian customers as a fantastic substitute for butter, cheese-based dips, and mayonnaise. Guacamole brands have a chance to establish themselves as an essential part of plant-based diets as a result of the growing popularity of plant-based meal kits, vegan fast food options, and meat substitutes. Additionally, partnerships with plant-based food producers may result in new product lines like burgers, grain bowls, and wraps flavored with guacamole.
Competition from substitute spreads and dips
Despite being a well-liked dip, guacamole is up against a lot of competition from other dips like hummus, salsa, tzatziki, baba ganoush, and dairy-based dips like cheese and ranch dressing. These substitutes are frequently less expensive, have a longer shelf life, and some customers might think they are more adaptable. Furthermore, competition is also created by the rising popularity of plant-based cheese and butter substitutes, which give consumers looking for healthier options more options. Guacamole companies run the risk of losing market share to these rival dips and spreads if they don't consistently innovate and distinguish their offerings.
The COVID-19 pandemic had a mixed effect on the guacamole market. At first, supply chain disruptions, restaurant closures, and a decline in demand for food service all hurt sales. Due to labor shortages, logistical delays, and price fluctuations, avocado production and distribution encountered difficulties, resulting in short-term supply constraints. The market did, however, recover as consumer preferences changed toward healthier eating and home cooking, and as retail outlets saw a rise in demand for packaged guacamole. Moreover, sales of ready-to-eat guacamole were further increased by the growth of e-commerce and grocery delivery services, and advancements in preservation and packaging techniques contributed to longer shelf life.
The Stand Up Pouches segment is expected to be the largest during the forecast period
The Stand Up Pouches segment is expected to account for the largest market share during the forecast period because they are lightweight, flexible, and easy to store, stand-up pouches are preferred because they improve consumer convenience. Compared to glass jars or containers, they are less likely to break due to their durability, which makes them a safer choice for storage and transit. Furthermore, stand-up pouches' resealable feature preserves product freshness, which increases consumer preference for them. Their extensive use in the guacamole market is also a result of their affordability, space efficiency, and sustainability advantages.
The HoReCa (Hotel, Restaurant, and Cafe) segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the HoReCa (Hotel, Restaurant, and Cafe) segment is predicted to witness the highest growth rate. The growing need for creative and individualized menu options in the food service sector is what is fueling this expansion. As a result of customers' desire for varied and adaptable dining experiences, restaurants are adding adaptable items like guacamole to their menus. Guacamole's popularity in cafes and restaurants is further enhanced by the trend toward healthier eating and the acceptance of plant-based diets, which supports the segment's strong growth. Moreover, the growing popularity of online food delivery services, fast-casual dining and international culinary fusion trends are all contributing to HoReCa's rising guacamole consumption.
During the forecast period, the North America region is expected to hold the largest market share. The popularity of Mexican food in the US and Canada, where guacamole is a main ingredient in many dishes, is the main cause of this dominance. The region's thriving food service sector and consumers' increasing preference for plant-based, healthful foods have greatly increased the consumption of guacamole. Furthermore, a consistent supply of avocados is made possible by the existence of significant avocado producers and advantageous trade agreements, guaranteeing product availability and competitive pricing in the North American market.
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. The growing popularity of Mexican food, the growing middle-class population with more disposable income, and the growing consumer awareness of healthy eating practices are the main drivers of this fast growth. Additionally, consumers in the region now have easier access to avocado and guacamole products owing to their increasing availability in supermarkets and online, which is driving market growth. The rise of global food chains, the growing influence of Western diets, and the popularity of plant-based diets are all factors driving market expansion.
Key players in the market
Some of the key players in Guacamole market include Calavo Growers, Inc., Landec Corporation, Frontera Foods, Inc., Ventura Foods, LLC, McCormick & Company Inc., Hormel Foods Corporation, General Mills Inc, Hope Foods LLC, B&G Foods, Inc., MegaMex Foods, LLC, Sabra Dipping Company, LLC, Conagra Brands, Inc, Westfalia Fruit Group, Yucatan Foods, LLC and Snowcrest Foods Ltd.
In September 2024, Hormel Food Corp., Cargill Inc. and National Beef Packing Co, all recently agreed to pay $57.4 million between the three companies to settle an ongoing class action lawsuit that accused them of worker wage suppression at red meat processing facilities. The law firm representing the workers in the lawsuit recently asked a judge in the US District Court for the District of Colorado to approve the deals, pushing the total to more than $200 million in settlements since the case began in 2022.
In May 2024, Ventura Foods, a food manufacturing and innovation company specializing in custom and branded products for restaurants and retailers, has reached an agreement to acquire DYMA Brands. All DYMA Brands employees and manufacturing locations will be acquired as part of the transaction. The DYMA Brands Company will continue to operate as a wholly owned subsidiary of Ventura Foods.
In November 2020, McCormick & Company Inc. announced that it has signed a definitive agreement to acquire the parent company of Cholula Hot Sauce(R), a premium hot sauce brand that delivers authentic Mexican flavor, from L Catterton, for $800 million in cash. The acquisition of Cholula accelerates McCormick's growth opportunities within our condiment platform and broadens our portfolio in the hot sauce category with the addition of the Cholula brand.