Estudio de La Demanda Internacional de Aceite de Aguacate

International Market Opportunity Study
(Avocado Oil)
A presentation to: Industry Stakeholders

By: Onesmo N Shuma
Date: September 15, 2020
1: Product Description and Characteristics
There are three main types of avocado oil:
Extra-virgin avocado oil:

• The “extra virgin” label is usually only given to oils extracted from the first cold-press.
• Similar to the extra virgin olive oil, the extra virgin avocado oil from the first cold-press is considered the highest
quality of oil available.
• Unless an oil is explicitly labelled "extra virgin," it is safe to assume it is not extra virgin. Extra virgin avocado oil is
produced by simple cold-pressing using temperatures less than 50°C (122°F) to extract the oil.
Refined avocado oil:

• Refined avocado oil is often marketed as "100% pure" or simply as "avocado oil”.
• Additionally, many avocado oils on the market are a blend of extra virgin avocado oil and refined avocado oil.
• Blending the two oils is an inexpensive way of adding flavour and colour to otherwise flavorless refined avocado oil.
• Refined avocado oil and blends are usually extracted at high temperatures. Additional processes and sometimes
chemical solvents are used to extract the oil from the avocados.
Virgin avocado oil:

The difference between a virgin and an extra virgin labelled oil is that extra virgin oils were extracted in just the first
press and virgin oils by just pressing, with no heat or chemicals added.
2
Avocado Oil: General Characteristics
• Oil extracted from high-quality fruit

• Extraction using only mechanical extraction methods
• Green in colour and have a strong aroma.
• High levels of monounsaturated fatty acids and a burning point of 250 C degrees.
Extra virgin
Based on the extraction method, the extra virgin oil classification is as follows:
 Organic: no added chemicals or flavour in it.
 Conventional: contains some added chemicals, preservatives and flavours.
• Oil extracted from sound fruit with some rots and physiological disorders.
Virgin • Extraction using only mechanical extraction methods
• Decolorized and deodorized oil with low acidity, low colour, and bland flavour.
• Fruit quality not important.

Pure/Refined • The label raw or pure is often used when an oil is cold pressed.
• Refined avocado oil is usually labelled as "100%
• Avocado oil is excellent for blending and complements extra virgin olive oil, flaxseed, and
Blend macadamia oils.
• The composition should match what it is claimed on the label.
3
Avocado oil properties: Organoleptic properties
Free fatty acid

Defects Color Acid value Stability Smoke point
(%as oleic acid)
2 years at ambient
Minimal to no defects temperature when
Intense and
Extra virgin such as pointy and ≤0,5% ≤1% stored under ≥250ºC
attractive green
subject to fishy notes. nitrogen and out of
the light
18 months at
ambient
Green with potential temperature when
Virgin ≤0,8-1,0% ≤2% ≥200ºC
yellow hue stored under
nitrogen and out of
Low levels only of the light
defects such as pointy >2 years at ambient
and fishy notes temperature when
Pure/Refined
Pale yellow ≤0,1% ≤0,5% stored under ≥250ºC
nitrogen and out of
the light.
Blend Depends on the
As specified ≤0,5%
blend
4
2: The Size of the Global Avocado Oil Market
• The international avocado oil market has been growing and gaining momentum since 2014 and is due to expand and grow further for at least the
next 5 years
• Over the years, the avocado oil market was marked by the appearance of several new products (avocado oil being the product in itself or used
as an ingredient/raw material), demonstrating increases in innovation and consumer awareness on the avocado oil properties.
• Worldwide, suppliers of avocado oil are identifying new ways to satisfy the evolving needs of consumers.
As a result, avocado oil is used in different forms, namely in food processing/retail of edible oil, as medicinal products, and personal care products.
The global avocado oil market is divided ort into five (5) geographical zones. The market groups researched in this report are the following:
Countries per region covered: Countries included

• U.S., Canada, and Mexico
North America
Europe • Germany, UK, France, Russia, Italy, and Rest of Europe
 China, Japan, Korea, India, Southeast Asia, Australia and
Asia-Pacific
Rest of Asia-Pacific
South America  Brazil, Argentina, Columbia and Rest of South America
 Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Turkey

Middle East and Africa: and Rest of MEA
5
2: Analysis of Global Avocado Oil Market
Market Size of the overall avocado oil (worldwide)
In terms of volume (Tons)
The avocado oil market (i.e. edible and cosmetic oil) was equivalent to 19,676 Tons in 2014, reached 24,810 Tons in 2018 and is expected to reach 37,576 Tons
by 2025.
NB: All the data i.e. in volume and value from 2014 to 2018 (included) are actual figures and all figures from 2019 to 2025 are forecasts.
The global avocado oil market, volume (Tons)
40,000 37,576
30,000 24,810
19,676
20,000
10,000
0
Volume (Tons)
2014 2018 2025
6
In terms of revenue (Million USD)
• The avocado oil market (i.e. edible and cosmetic oil) was valued at 350 Million USD in 2014, reached 430 Million USD in 2018 and
is expected to be worth 621 Million USD by 2025.
The global avocado oil market, revenue (USD million)
700
621
600
500 430
400 350
300
200
100
0
Revenues (Million USD)
2014 2018 2025
7
Regional Perspective
(i) Business growth
• All regions have managed to grow their respective volume and revenues of avocado oil throughout the past four
years and are expected to grow even further by 2025.
• The global avocado oil demand looks great at a CAGR of 6.12% between 2019 and 2025 and all regions
combined increased their volume by +5,142 Tons gaining approximately 80 Million USD in the four-year-period
(2014-2018).
• Forecasts show that the growth of the avocado oil market in all regions will continue to grow.
• In fact, as of 2025, the global avocado oil volume would have increased since 2014 by +17,900 Tons and
revenues by +272 Million USD demonstrating a global growing trend of avocado oil consumption.
• North America is the largest regional avocado oil market, and is expected to maintain its top position, partly due
to increasing per capita spending and increasing consumer awareness of avocado oil„s benefits.
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(ii) Market Share
• The highest market share amongst the five main regions in terms of revenues is recorded by North
America with a 50% market share.
• It was followed by South America with 17%, Europe with 13%, the MEA 11% and Asia-Pacific 9%.
• As for the market share in terms of volume, all region maintain more or less the same share as from a
revenue perspective.
Market Share, (revenue %) Market share, (volume %)
9% 10%
11%
13%
13% 50% 47%
13%
17%
17%
North America South America Europe North America South America Europe
MEA Asia-Pacific MEA Asia-Pacific
9
(ii) Growth rates
• On a worldwide basis; however, different regions are growing at different pace considering that some avocado oil markets are more developed in certain
regions than in others.
• Looking at the growth potential of each of the five regions, the compound annual growth rate (CAGR) over the period 2018-2025 for the leading avocado oil
markets varies from 5% up to 8% yearly over the next 5 years.
o Comparatively, Europe‟s revenues in terms of avocado oil is expected to reach 84 Million USD by 2025, as compared to 57 Million USD in 2018, thus
growing at a CAGR of 5.7%.
o The Middle East & Africa and the Asia-Pacific regions are expected to grow to 20 Million USD over the period 2018-2025 with a CAGR of 4.9% and 6%,
respectively.
o South America and North America, while being the largest markets and expected to maintain their top positions as the world regional leaders are growing at
slower rates than the Asia-Pacific and Europe regions.
• The Asia-Pacific region is expected to record the highest growth in terms of revenues and the second highest growth in terms of volume with 6.3%, following
Europe, which is expected to reach a CAGR of 5.6% (volume).
o One of the reasons behind Asia-Pacific higher predicted growth is due to the presence of leading avocado processors such as New Zealand and Australia,
which are top avocado oil producers/exporters in that part of the world. With New Zealand being the home to leading avocado oil processors, such as Grove
and Olivado.
o It goes without say that from the Northern part of Asia-Pacific region, markets such as China (large consumer base within an emerging economy), Japan,
India (large consumer base within an emerging economy) and South Korea (emerging economy) will also play a major role in this growth for the entire
region.
Overall, and as shown in this slide, in terms of revenue growth rate, the total avocado oil market in 2018 is expected to have a combined worldwide CAGR of
5.4% between 2018 and 2025.
Compound Annual Growth Rate per region 2018-2025
• Overall, in terms of revenue growth rate, the total avocado oil market in 2018 is expected to have a combined worldwide
CAGR of 5.4% between 2018 and 2025.
Revenue (CAGR %)
8.00% 6.00% 5.72% 5.54% 5.28% 4.94% 5.41%
6.00%
4.00%
2.00%
0.00%
Asia-Pacific Europe South America North America Middle East Total
and Africa
Volume (CAGR %)
7.00% 6.55%
6.50% 6.25% 6.16% 6.12%
5.94%
6.00% 5.68%
5.50%
5.00%
Europe Asia-Pacific North America South America Middle East Total
and Africa
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Market analysis based on Oil Type
• In 2018 with a global avocado oil market worth 430 Million USD and short of 25,000 Tons, the lion share by grade in terms of value was held by the extra
virgin oil (43%), followed by virgin oil (33%) and finally refined avocado oil (24%).
• The extra-virgin market segment is expected to increase by +37 Million USD from 2014 to 2018, while the virgin oil revenues recorded an excess of +26
Million USD during the same period.
• Both grades are followed by the refined avocado oil revenues, which also increased during the same period (+18 Million USD).
The avocado oil market by grade, revenue (USD million), CAGR (%)
300 274.8
250
203.6
200 185.6 Refined Oil 5
148.9 142.4 143.3
150 116.6 102.2
100 84.5 Virgin Oil 5.3
50
0 Extra Virgin Oil 5.8
Extra Virgin Oil Virgin Oil Refined
2014 2018 2025 4.5 5 5.5 6

CAGR (%), 2019-2025
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Market analysis based on Oil Type
The increasing popularity of all the three grades can also been seen looking at the growth in terms of volume of each grade.
The volume of extra-virgin oil market segment the volume reached 10,706 Tons in 2018 from 8,372 Tons in 2014 and is expected to maintain its top position to
achieve the highest volume with 16,609 Tons by 2025 i.e. an increase of +8,237 Tons (2014-2025).
It is followed by the virgin oil market segment‟s volume was equal to 8,212 Tons in 2018 from 6,552 Tons in 2014 and is expected to reach in excess of 12,306 Tons
by 2025 i.e. an increase of +5,754 Tons (2014- 2025).
Finally the refined oil market segment‟s volume reached 5,893 Tons in 2018 from 4,752 Tons in 2014 and is expected to reach 8,661 Tons by 2025 i.e. an increase of
+3,909Tons (2014-2025).
The avocado oil market by grade, volume (Tons)
20,000
16,609
15,000 12,306
10,706
10,000 8,372 8,212 8,661
6,552
4,752 5,893
5,000
0
Extra Virgin Oil Virgin Oil Refined
2014 2018 2025
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The global avocado oil broken down by variety
Categories covered in terms of Brief description what is

variety included
• Hass
Main varieties • Fuerte
• Zutano
• Lamb Gwen
• Bacon
Other varieties
• Ettinger
• Sharwil
• Cleopatra
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In terms of variety, the Hass variety stood out amongst any other varieties.
• In fact, in 2018, the Hass variety revenues reached 265 Million USD as compared to Fuertes‟s revenues, which amounted to 70 Million USD sold.
• The market share over the period 2014-2025 is expected to remain constant for all varieties, with variations of less than 1%, however in parallel the overall market size i
expected to grow by +192 Million USD to reach approximately 622 Million USD by 2025.
• Actually, over the 2014-2025, the market share is expected to remain constant for all varieties, with variations of less than 1%, however in parallel the overall market siz
is expected to grow by +192 Million USD to reach approximately 622 Million USD by 2025.
• Though between 2018 and 2025, Hass and Fuerte are the only two varieties that are expected to increase.
• The Hass variety is expected to grow its market share by 1%, due to an increase in excess of 124 Million USD over a period of 7 years as compared to Fuerte, due t
gain +0.28% market share with an excess of almost 33 Million USD
• For 2018, the combined revenues for the other varieties (Zutano, Lamb Gwen, Bacon…etc.) reached 96 Million USD.
• Between 2014 and 2025, Hass is thought to increase to 176 Million USD. Fuerte will also record a volume increase +46 Million USD. The market shares of each variet
have witnessed variations over the years.
The avocado oil market by variety, revenue (USD million)

450
389.5
400
350
300 265
250 213.5
200
150 129.8
95.5 102.5
100 80.4 69.7
56.2
50
0
Other varieties Fuerte Hass
2014 2018 2025
15
The avocado oil market size broken down by end user
Categories covered:
Brief description what is included
end-user
Food processing products • Edible cooking oil, seasonings…
• Skin moisturizer, Natural Makeup removal, sunscreens,

Personal care products massage oils, bath oils, gels, creams, soaps, shampoos,
conditioners
• Avocado Soybean Un-saponifiables, known as ASU, is

considered a vegetable extract that combines one-third
avocado oil with two-thirds soybean oil.
Medicinal products.
• It works by blocking pro-inflammatory chemicals and
preventing the deterioration of the cells that line the joints. It
may also help regenerate connective tissues.
• Avocado oil used in production of biodegradable polymers

Other category
and structured lipids.
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• In 2018, the food processing and retail avocado oil volume reached 8,890 Tons. It was followed by personal care products with 7,158 Tons, medicinal
products with 4,578 Tons and other with 4,186 Tons.
• Overall, the annual market shares of the avocado oil industry in the different market segments remained relatively stable between 2014 and 2018 varying by
less than 1% each year.
• The food processing market share over the four-year-period reached 36% while personal care products stood at 29%, medicinal products at 19% and the
other category at 17%.
• Despite the relative stagnation of the market shares for each category, the global avocado oil market per end-user follows a growing trend as for revenues
and volume- have been increasing.
The avocado oil market by end user, volume (Tons)

16,000
14,000 13,358
12,000 10,946
10,000 8,890
8,000 7,083 7,158 7,064

6,208
5,647
6,000
4,578
4,186
4,000 3,601 3,365
2,000
0
Food Processing Personal Care Products Medicinal Products Others
Volume (Tons) 2014 Volume (Tons) 2018 Volume (Tons) 2025
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Market analysis by end user
For the past five years, revenues from avocado oil products in each of the market segment have increased.
• The highest revenues come from the food processing market segment, which increased from 126 Million USD to 154 Million USD between 2014 and 2018 i.e. an
increase of +29 Million USD. Forecasts show that revenues for this category are expected to reach 221 Million USD by 2025, an increase of 95 Million USD (2014-
2025).
The increasing revenues can be explained by the fact that there is a growing interest among consumers to buy healthier alternative to other edible oil.
• The food-processing category is followed by the personal care product category, which increased by 24 Million USD over the four-year period and is expected to further
increase to reach 181 Million USD by 2025 (excess of +81 Million USD between 2014 and 2025).
• The other main use of avocado oil is through medicinal products, which despite recording lower revenues than the other categories are also on a growing trend
increasing from 64 Million USD in 2014 to 79 Million USD in 2018 i.e. an increase of +16 Million USD.
• It is expected that between 2014 and 2025, the medicinal products revenues will grow by +53 Million USD.
• The growth in revenues of the personal care products and the medicinal products categories can be explained by the proven properties of avocado oil on the skin, by
celebrity endorsement, increased consumer awareness due to sponsorships, advertisement campaigns and social media influencers.
• The last category “others” is due to witness growth in its revenues, moving from 59 Million USD to 72 Million USD between 2014 and 2018, an excess of +13 Million
USD in a four-year period.
• Forecasts also show that revenues for this category will continue with this growing trend with an expected excess of +43 Million USD between 2014 and 2025.
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3: Lead Avocado Oil Markets
• It is interesting to look at the trade flow between the global avocado oil player.
• A lot of intra trade is done within the EU.
• For Europe, there are 2 lead sources of supply for avocado oil imported to the EU market:
• Where are the leading EU avocado oil markets buying their avocado oil from?
Leading European avocado oil actors
Germany France UK Netherlands Russia Italy Spain
Top 3 import sources for each leading EU avocado oil actor
Italy Spain Netherlands Germany Sweden Denmark Portugal
Netherlands Netherlands Germany UK Netherlands Spain France
Austria Germany Italy USA Italy France Mexico
Combined market share of the top 3 import source per leading EU avocado oil actor (%)
43.50% 49.00% 35.60% 34.40% 74.50% 44.50% 61.20%
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• Besides exporting within the EU, some European leaders of avocado oil (France, UK, Italy and Spain) also export to the US market as one of their top 3
export market.
• Where are the leading EU avocado oil markets exporting their oil to?
Leading European avocado oil actors:
Germany France UK Netherlands Russia Italy Spain
Top 3 export markets for each leading EU avocado oil actor
France USA Netherlands France Norway Germany USA
Netherlands Germany Germany Germany Romania USA France
Austria Netherlands USA Russia Latvia Poland Portugal
Combined market share of the top 3 export markets per leading EU avocado oil actor (%)
44.9% 38.3% 51.0% 52.9% 81.9% 37.7% 67.7%
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• Besides the widespread use of avocado oil in retail products, it as previously mentioned present in several industries namely in the food processing industry, but also
in the cosmetic industry. In 2018, avocado oil used in food processing represented 35.83% of the worldwide avocado oil market and the avocado oil used in
cosmetics (personal care products) represented 28.85% of the overall avocado oil market.
The EU cosmetic market
European cosmetics market • In value : 86.4 Billion USD
• Over 2 Million jobs

Job creation
• Job distribution per gender: Men (40%), Women (60%)
• Direct employment in the manufacturing of cosmetics: 167,730
• Indirect employment: Approximately 1.63 Million
• For every 10 workers employed, at least 2 further jobs are generated.
• A current estimation of at least 366,200 workers.
Trade in cosmetic products and
ingredients (within the EU30) • Over 38 Billion USD
European exports • 23.6 Billion USD (50% originate from Germany and France)
Added value to the European economy • At least 31 Billion USD
every year • Direct contribution by manufacturers 12 Billion USD Indirect contribution, resulting from the
supply chain: 19 Billion USD
• Over 5,800 manufacturers of cosmetics Over 100 manufacturers of cosmetic ingredients
Manufacturing/processing/retailing • 23,000 wholesalers
• 46,400 specialist stores
Research & Development (R&D) in the • 77 innovation facilities in Europe

cosmetic industry 21
• 28,800 scientists
EU consumer demand and trends affecting avocado oil sales & consumption
Trend France Germany United Kingdom Netherlands Russia
Ageing population looking for

√ √ √ √
healthier products
Food safety √ √ √ √ √
High quality products √ √ √ √ √
Traceability √ √ √ √
Health conscious √ √ √ √ √
Organic √ √ √ √ √
Fair Trade √ √ √ √
Buying Local √ √ √ √ √
Muslim population in
Russia: in excess of 9
Halal certified √ Growing interest Growing interest Growing interest
million i.e. 6.5% of the
total population
Zero waste √ √ √ √
Vegan, Vegetarian √ √ √
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North America-Consumer & demand trends
Trends USA Canada

Ageing population ✓ ✓
Health conscious ✓ ✓
Organic ✓ ✓
Fair Trade ✓ ✓
Buy local ✓ ✓
✓ ✓
For the new immigrant population i.e. 21% of the

Halal certified In excess of 5 million Muslims live in
Canadian population is foreign born and 8% of the
the US nowadays
total population in Canada is Muslim
In excess of 5.5 million American of

Kosher certified
Jewish faith live in the US nowadays
Zero waste ✓ ✓
Hispanic influence
✓
(population, cuisine etc.)
Vegan, vegetarian ✓ ✓
Flexitarianism ✓
High quality products ✓ ✓
Mindful eating ✓ ✓
Instagram-able meals ✓ ✓
Top trading partners of the leading North America avocado oil markets
Where are the leading North American avocado oil markets exporting their oil to?
Leading North American avocado oil actors:
Mexico USA Canada
Top 3 export markets for each leading North American avocado oil actor
USA Canada USA
Venezuela Yemen China
South Korea Switzerland New Zealand
Combined market share of the top 3 export markets per leading North American avocado oil actor
(%)
79.40% 37.80% 82.40%
24
Top trading partners of the lead Middle East and Africa avocado oil markets
Where are the leading North American avocado oil markets exporting their oil to?
Leading MEA avocado oil actors
Saudi Arabia Nigeria Turkey UAE South Africa Egypt
Top 3 import sources for each leading MEA avocado oil actor
Indonesia USA Denmark USA USA Malaysia
Egypt Italy Sweden India Philippines Spain
Morocco France USA France France China
Combined market share of the top 3 import sources per leading MEA avocado oil actor (%)
89.20% 92.20% 71.40% 58.90% 57.50% 80.80%
25
Top trading partners of the lead Middle East and Africa avocado oil markets
Where are the leading Middle East and African avocado oil markets exporting their oil to?
Leading MEA avocado oil actors:
Saudi Arabia Nigeria Turkey UAE South Africa Egypt
Top 3 export markets for each leading South American avocado oil actor
Morocco Malaysia USA Kuwait France Libya
Kuwait Pakistan France Maldives Germany Jordan
Russia India Germany France Malaysia Saudi Arabia
Combined market share of the top 3 export markets per leading South American avocado oil actor (%)
69.90% 92.70% 68.20% 82.20% 57.10% 47.10%
26
Top trading partners of the Lead Asia-pacific oil markets
Where are the leading North Asia-Pacific avocado oil markets buying their avocado oil from?
Leading Northern Asia-Pacific avocado oil actors:
China Japan India South Korea

Top 3 import sources for each leading Northern Asia-Pacific avocado oil actor
France Brazil Ghana Thailand
USA China Bangladesh Spain
Italy Italy France Italy
Combined market share of the top 3 import sources per leading Northern Asia- Pacific avocado oil actor (%)
44.70% 42.10% 69.90% 49.50%
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4: Leading Market Requirements
Requirements to export & certification compliance
• Getting certified from recognized and trustworthy certification bodies shows to international buyers that your product
complies with high and consistent quality and safety requirements.
 SPS requirements
 Food heath & safety regulations
 Food labelling regulations
 Packaging regulations
 Organic certification
 Microbiological tests etc.
 These certifications are usually very costly and present a competitive advantage, noting that getting certified does not mean charging higher
prices will be possible.
 However, getting certification is gaining in importance. At some point, if it is not already the case, being certified will no longer be considered to
be a competitive advantage but will become a threshold requirement to enter any market.
28
Examples of food safety requirements
• Some examples of certification that are currently used by avocado oil processors worldwide that guarantee food safety, quality
requirements and meeting international consumer demands:
 HACCP – Hazard Analysis and Critical Control Point
 GFSI – Global Food Safety Initiative

 IFS – International Food Standards
 ISO 9001 – food safety in manufacturing
 ISO 22000 – food safety in the food chain from origin to final consumption
 ISO 14000 – environmental aspects
• Depending on the target market and importers‟ specifications, the requirements will differ.
29
Examples of additional certifications used by international avocado oil processors (1) to differentiate their products
With these certifications, premium prices can be achieved (organic etc) and it is a way of differentiating your product from the competition
30
Examples of additional certifications used by international avocado oil processors (2)
31
5: Conclusions
1. The popularity of fresh avocados has driven fresh consumption worldwide which spilled over the demand for avocado by-products such as avocado
oil.
2. The international avocado oil market has been growing and gaining momentum since 2014 and is due to expand and grow further for at least the next
5 years.
3. Consumer campaigns to promote brand awareness are critical to avocado distribution and sales.
4. Lead uses of avocado oil around the world: food processing and retail, followed by the cosmetic industries. These two segments will represent further
opportunities in the future for new and existing exporters.
5. Hass and Fuerte are the most preferred varieties for avocado oil processing
6. Lead target markets to consider should be North America, EU, followed by growing markets such as MEA and Asia.
32
Technical Recommendations
• Prepare for export/market entry (get an export license etc)
• Document production procedures/steps to follow and the minimum hygiene and safety steps to be undertaken.
• Establish procedures to ensure traceability
• Identify and get the appropriate certification(s) depending on target markets
• Forecast demand and production
• Conduct regular technical audits
• Establish compliance processes to implement the best ethical, social, and environmental practices and consider social and
• Monitor the demand for avocado-based products to better manage the supply. Try to secure a constant supply and ensure you
will have sufficient volume to meet orders.
• Establish a system in terms of packaging materials that is adaptable (adapt packaging languages, consider market requirements
in terms of health claims, and identify the right coloring chart…).
• Adopt a customer relation management system to improve relationships with clients: monitor trends and changing purchasing
preferences, respond to complaints and product improvement demands, after-sale follow-ups.
Market Entry Recommendations
1. Direct marketing methods: directly contact potential buyers via email, phone calls or through online advertisements.
2. Participate to trade fairs to assess opportunities, competition, evolving market demands etc
3. Establish an online presence for avocado oil distribution in leading international markets, both for cosmetic and edible avocado oil products.
4. Collaboration with an intermediary/broker/agent based in the target market.

• Better knowledge of national laws, logistics and the way to do business within that particular country
• Easier to deal with administrative/paperwork
• Obtaining the necessary authorizations to trade
• Market knowledge and network among retailers or processors.
5. Develop more specific environmentally, socially conscious products (Organic,

ethnic (Halal etc.) and sustainable products.
6. Do not omit your own domestic markets, trying to link up with retailers and processors for the different grades of oil from crude to extra virgin depending on the needs
and requirements.
7. Make the most of the constant growth of African regional markets by developing your export sales in neighboring countries.
8. Take advantage of your current export markets to leverage your current network of buyers to find opportunities for additional avocado oil exports.
9. Contact other avocado oil processors in the different destination markets, even though they are your competitors they may be looking for additional volume to purchase.
10. Mitigate the risk of not being paid, trade credit insurance can be contracted to cover against commercial risk
Market Entry Recommendations
Example: How to find new customers in the EU market

Potential EU trade fairs that might be of interest for avocado oil exporters
 Anuga: is the world‟s leading food fair for the retail trade and the food service and catering market. It is a useful trade fair for discovering new trends and learning about
the European consumer market. It is held every two years in Cologne, Germany.
 SIAL: is one the world‟s largest food exhibitions, encompassing a number of food ingredients and final products. SIAL is held every two years in Paris, France.
 Oils and Fats: a biannual business platform for the European oils and fats industry in Munich, Germany.
 Food Ingredients Europe is a trade fair which deals with various food ingredients. Fi Europe takes place every two years in different European cities.
 BioFach (for organic certified produce only): the most important international exhibition for organic food and fair trade products, held every year in Nuremberg, Germany.
It is a crucial trade fair to visit or exhibit at, for companies selling certified organic products.
 In-Cosmetics: this is the leading global business event for personal care ingredients which brings together suppliers, formulators, and R&D and marketing specialists. It is
held every year in a different European city
 In-Cosmetics
Tips to get support to enter the European market:
 Find trade promotion organizations in Europe.

 Search for export promotion programmes.
 Contact governmental organizations, embassies or chambers of commerce.
 Online trading sites can give access to less traditional markets (premium etc), or make it possible to promote specific products such as avocado oil.
Prospect databases
Another source for finding sector players and achieving trade agreements. Here are some examples:
 Foods for Trade
 Organic-Bio
 Go4WorldBusiness
 Tradekey
Marketing & Promotional Recommandations
• Identify the product mix by taking into consideration all aspects of the supply chain
• Plan ahead and encourage marketing and logistical functions to work together
• Benchmark on a regional and international level to assess the competition and implement the right marketing strategies to reach out to the target market.
Marketing strategies should be developed for the short, medium, and long term.
• Participate in regional and international trade fairs to promote your product and raise awareness.
• Establish pricing strategies adapted to different target market and different type of clients (agents, distributor, retail buyer etc.).
• Benefit and maximize the use of available B2B platforms to connect with buyers.
• Increase your online presence to sell your products
• Download exhibitor lists of the large trade fairs relevant to avocado oil in order to build up a contact database
• Decide if there is a need to create own brand or to supply in the first instance under the brand of your client or distributor.
• Consider supplying the private label market in the EU, USA and Canada.
Opportunities Emerging from the COVID 19 Crisis
• Large parts of the world are still under lockdown due to the COVID 19 crisis.
• The COVID crisis was an electric choc not just in terms of the economy, but also in terms of the health and safety of population around the world.
• WTO estimated that due to the pandemic, world trade dropped by -18% over the lockdown period.
• However, despite the negative consequences and the uncertainties surrounding this current crisis, new opportunities, derived from changing consumer habits and the
way we are doing business around the world, following lockdown measures, should be pursued by Tanzanian exporters.
• The development of domestic and regional markets, on top of the usual export channels for avocado oil.
• Through the necessity to find new sales outlets during the COVID crisis, exporters have established new ties with retailers and processors within their own domestic
markets, hence reducing long term the dependency on export, in case of similar future market shocks or closures.
• A new way of doing business: Participation in virtual trade fairs and virtual B2B platforms. Several, several physical events trade fairs around the world were cancelled,
which has led organizers to shift to online alternatives. Indeed, many trade fairs are now taking place on-line and thus exporters who were normally unable to participate
to physical trade fairs in certain countries due to costs or availability, are now able to showcase their products and thus expand their search for potential buyers.
• Increase of sales of cooking oil during lockdown, raising consumer awareness on the entire edible oil category
According to a Nielsen study that was carried out right after the end of the lockdown measures in the Middle East markets, on the impact of COVID 19 on food purchases.
A staggering increase of +91% in sales was recorded for the cooking oil category
• The development of domestic and regional markets,

• A new way of doing business:
• Increase of sales of cooking oil during lockdown, raising consumer awareness on the entire edible oil category
The impact of COVID 19 crisis in the Middle East markets on food categories
Increase in interest of home cooking beyond the lockdowns
• Another impact of the crisis, as shown in the results of the Nielsen study (May 2020) is the increase interest in home cooking, going beyond
the lockdowns.
• This trend can be seen across different regions of the world, where consumer shifted their interests to home cooking using healthy food and
ingredients.
• As avocado oil has recognized healthy attributes, this trend beyond the lockdowns will benefit consumption of avocado oil.
New consumer trend post COVID affecting avocado oil consumption

Increase in private label growth around the world
• The distribution through private label could be an opportunity for Tanzanian exporters as the private label market in supermarkets is increasing and appears to perform
well not only in times of recession or crisis, but also in years of growth.
• Retailers have become more receptive to developing private labels brands due to better profit margins.
Increase in private label growth around the world

Increase in online sales beyond the end of the lockdowns

Estudio de La Demanda Internacional de Aceite de Aguacate

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Estudio de La Demanda Internacional de Aceite de Aguacate

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International Market Opportunity Study

A presentation to: Industry Stakeholders

There are three main types of avocado oil:

Extra-virgin avocado oil:

Refined avocado oil:

Virgin avocado oil:

Avocado Oil: General Characteristics

• Oil extracted from high-quality fruit

• Fruit quality not important.

Avocado oil properties: Organoleptic properties

Free fatty acid

Countries per region covered: Countries included

South America  Brazil, Argentina, Columbia and Rest of South America

 Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Turkey

Market Size of the overall avocado oil (worldwide)

In terms of volume (Tons)

The global avocado oil market, volume (Tons)

In terms of revenue (Million USD)

The global avocado oil market, revenue (USD million)

(i) Business growth

Market Share, (revenue %) Market share, (volume %)

Compound Annual Growth Rate per region 2018-2025

Market analysis based on Oil Type

2014 2018 2025 4.5 5 5.5 6

Market analysis based on Oil Type

The avocado oil market by grade, volume (Tons)

2014 2018 2025

The global avocado oil broken down by variety

Categories covered in terms of Brief description what is

The avocado oil market by variety, revenue (USD million)

The avocado oil market size broken down by end user

Food processing products • Edible cooking oil, seasonings…

• Skin moisturizer, Natural Makeup removal, sunscreens,

• Avocado Soybean Un-saponifiables, known as ASU, is

• Avocado oil used in production of biodegradable polymers

The avocado oil market by end user, volume (Tons)

8,000 7,083 7,158 7,064

Volume (Tons) 2014 Volume (Tons) 2018 Volume (Tons) 2025

• A lot of intra trade is done within the EU.

Leading European avocado oil actors

Germany France UK Netherlands Russia Italy Spain

Top 3 import sources for each leading EU avocado oil actor

Italy Spain Netherlands Germany Sweden Denmark Portugal

Netherlands Netherlands Germany UK Netherlands Spain France

Austria Germany Italy USA Italy France Mexico

43.50% 49.00% 35.60% 34.40% 74.50% 44.50% 61.20%

Leading European avocado oil actors:

Germany France UK Netherlands Russia Italy Spain

Top 3 export markets for each leading EU avocado oil actor

France USA Netherlands France Norway Germany USA

Netherlands Germany Germany Germany Romania USA France

Austria Netherlands USA Russia Latvia Poland Portugal

44.9% 38.3% 51.0% 52.9% 81.9% 37.7% 67.7%

The EU cosmetic market

European cosmetics market • In value : 86.4 Billion USD

• Over 2 Million jobs

Research & Development (R&D) in the • 77 innovation facilities in Europe

Trend France Germany United Kingdom Netherlands Russia

Ageing population looking for

High quality products √ √ √ √ √

North America-Consumer & demand trends

Trends USA Canada

For the new immigrant population i.e. 21% of the

In excess of 5.5 million American of