Brazil Avocado Market Research Report, 2029

Avocado cultivation in Brazil began in the early 20th century; it has gained popularity over the years. First commercialized as a niche product, avocados started making their way through Brazilian gastronomy, essentially in the 1990s, at a time when world diets were changing to healthier foods. The wide range of climatic variations and agricultural know-how in the country has greatly contributed to the avocado's rapid cultivation, hence placing the country as one of the large avocado suppliers in the international market. Avocado supply chains are long in Brazil from cultivation to distribution. Most avocado farmers sell their produce to local processors or export companies, who then sort, pack, and control the quality. It also includes facilities for transportation, such as roads and cold storage facilities, which are very instrumental in the maintenance of avocado quality during distribution. Sustainability in the avocado industry in Brazil is developing with increasing emphasis on environmental and social practices. In terms of deforestation and water use, efforts are underway, especially in the Amazon and other sensitive areas. Interest is trending in sustainable farming practices in particular, integrated pest management and organic farming. Certifications and international sustainability standards are increasingly being sought after to make Brazilian avocados more marketable. Governmental support to the avocado industry in Brazil has been quite remarkable and has come in the form of a string of strategic policies and measures. These policy measures range across farming subsidies and financial incentives through modernization of farming practices that enhance productivity but remain eco-friendly. Indeed, the government, institutionalized in institutions like EMBRAPA, has been instrumental in research and development, culminating in the creation of some high-yielding avocado varieties and innovative farming techniques that lower environmental impact. This has also led to the improvement of rural infrastructure include better road networks and cold storage facilities have added to the efficiency of supply chains, which in turn helped to reduce post-harvest losses. Other events that were critical in facilitating innovation, knowledge transfer, and interaction among farmers, industry stakeholders, and government were regional fairs some exclusively dedicated to agriculture and the Hortifruti Brasil Symposium. According to the research report "Brazil Avocado Market Research Report, 2029," published by Actual Market Research, the Brazil Avocado Market is anticipated to grow at more than 6% CAGR from 2024 to 2029. The avocado sector represents one of the key factors in job creation and generation of income, mostly in rural areas. Even though most of its production is absorbed domestically, growing potential for export expansion already exists. In this chain, different economic segments are maintained are farming, processing, and logistics, relevant in regional economic development. Only recently have avocados gained tremendous popularity in Brazil because of their versatility and related health benefits associated with them. Applications of the fruit vary from traditional cuisine to modern recipes. As more consumers are getting conscious about nutrition and wellness, demand for the fruit has increased as people perceive it to be very healthy and full of nutrients. This growing popularity can be witnessed in the increasing quantity of avocados being sold in the nation's supermarkets, restaurants, and food service outlets. The avocado market in Brazil points to growing production and rising domestic consumption. Avocado cultivation is practiced in a few quite different regions, with São Paulo, Minas Gerais, and Espírito Santo as large producers. Domestic consumption of the avocado has increased as the fruit is adapted into traditional Brazilian dishes and due to a higher level of information on health benefits. Though avocados are consumed in large quantities domestically, Brazil has a very small export footprint compared to other leading avocado producers like Mexico and Peru. The Brazilian avocado market thus faces difficulties in the form of tough competition from traditionally avocado-producing countries, logistical issues, and a lack of infrastructure development. Another challenge is the attainment of sustainability and an increase in farming efficiency. There are, huge opportunities pertaining to market expansion for exports, improvement in methods of production, and capitalizing on the rising demand for healthy foods. Innovations in farming practices and increased investment in infrastructure can help Brazil overcome these challenges and strengthen its position in the global avocado market.

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The avocado market is quite diversified in Brazil, basically including a number of key varieties are Hass and Fuerte, among others, which also include Geada, Fortuna, Breda, and Margarida. Specifically, Hass avocados were introduced into Brazil in the early 1980s and have resulted in great inroads, commanding a huge proportion of avocado production and exports in the country. Hass avocado production in Brazil was estimated at approximately 10,000 tons in 2022, with the majority exported to Europe, while the USA and Japan were emerging markets. It is the creamy aspect and rich flavor of the fruit that have contributed to increasing its adoption among Brazilian consumers, who shift away from traditional sweet recipes toward savory dishes. The Fuerte type, with its smooth skin and green color, is native in Brazil. Exports date back to the 1980s. Although Fuerte is still cultivated, volumes have remained modest versus Hass only about 4,000 to 5,000 tons in recent years. Most Fuerte avocados are consumed locally, often in sweet dishes or for smoothies. Additionally, a number of West Indian race varieties are grown in Brazil, typically larger and more watery than Hass avocados. These varieties are usually consumed fresh in the local market, usually sautéed with sugar or utilized for desserts. On the other hand, the Associação Brasileira de Produtores de Abacate supports the Brazilian avocado market with an incentive to grow and consume it in every part of the country. The Brazilian avocado market will grow due to the increasing demand from the food and beverages, retail, cosmetics and personal care, and other end-user industries. Avocados are widely accepted in the food and beverage industry owing to their versatility and nutritional value. They find huge applications in the preparation of traditional food like guacamole and also in salad and smoothie for health buffs. Increasingly, demand has also been boosted by the popularity of plant-based diets, in which avocados represent a creamy texture with healthy fats, enhancing vegan and vegetarian recipes. Another factor is avocado-based beverages, particularly smoothies and juices, which will continue to make headway in terms of demand as the trend toward healthier drink options expands. The major displays in most supermarkets and grocery stores across Brazil, in the retail sector, is avocados. Having more people become aware of the avocado as a superfood, there is a need for allocation of more shelf space for fresh avocados and value-added avocado products, including pre-packaged guacamole and avocado spreads. Another factor that increases the sales of avocados is e-commerce. The potential areas of development of avocado production in Brazil would be the cosmetics and personal care segment. Avocado oil finds increasingly growing application in skincare formulations, hair care products, and cosmetics in this segment. Avocado oil is used in skincare since it is moisturizing and nourishing. The attributes attract consumer interest in natural and organic beauty products. Geographically, the health benefits of avocados are being capitalized on by brands to come out with a line of products that will catch eco-conscious consumers from lotions to hair masks. Another major factor is the rise of healthful snacking, with the newly introduced avocado-based chips and bars as a supposedly more wholesome variant against traditional snack foods. Fresh and processed avocado markets in Brazil cater to different tastes and market needs. Avocados in their fresh state predominate in the Brazilian market, while cultivation is well done in São Paulo and Minas Gerais. Fresh avocado is welcomed in Brazil, as it is very integrated into traditional dishes of Brazilians like salads and sandwiches, and even smoothies, attesting to its versatility and nutritional value. Domestic production has been growing, driven by robust local demand and an emerging trend for healthier eating. Against such a backdrop, it is intense competition from imported avocados, mainly from Mexico and other Latin American countries, that finally check the growth of the avocado industry in Brazil. The processed avocado sector in Brazil is under development, although not as strong as the fresh one. The products available in this category are guacamole, avocado oil, and frozen avocado forms. To such an end, processed avocado products are gaining momentum in light of their added convenience and extended shelf life. For instance, firms are only penetrating the market with guacamole and avocado-based snacks for retail and foodservice. Avocado oil also finds a market, based on perceived health benefits and culinary uses, although it is very much a niche product compared to traditional oils. Frozen avocado products have only just been initiated, but they really do promise convenience for consumers on the go looking for easy meal solutions.

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Kripa Shah

Senior Analyst

The avocado market in Brazil is based on a well-developed distribution channel, both online and offline, to reach a high level of coverage with the product. The offline distribution channel dominates the market, but the main players the supermarkets Pão de Açúcar, Carrefour, and Extra are offering several types of avocados, with Hass as the bestseller among all types. This is also strongly complemented by the sales from hypermarkets and traditional markets so-called "feiras livres" or "mercados municipais" that give customers the experience of fresh and local production, together with a very personalized service. Added to this are small neighborhood grocery stores, which increase the convenience for local residents. Online distribution has only recently started to develop due to the growth of e-commerce and its associated convenience. It has seen the opening up of fresh produce lanes by major online merchants such as Amazon Brazil and Mercado Livre to put avocados at the fingertips of consumers to buy from the comfort of their homes. Online grocery shops that have been exclusively deployed in food, like Rappi, iFood, and James Delivery, have turned into major drivers, providing all kinds of avocado varieties and flexible time slots for delivery. The COVID-19 pandemic has accelerated growth in online grocery shopping, with more consumers turning to e-commerce for everyday needs, including avocados. Direct-to-consumer sales through subscription boxes or direct sale via websites hosted by a local farm or cooperative have gained considerable ground of late. The consumer benefits not only from fresh, high-quality avocados but also is supporting local agriculture. Social media especially Instagram and Facebook seems to be such a tool, instrumental for farmers and small businesses to promote and sell their avocados directly to consumers. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029

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Aspects covered in this report • Avocado market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Hass • Reed • Fuerte • Others By End User • Food & Beverages • Retail • Cosmetics & Personal Care • Others By Form • Fresh • Processed By Distribution • Online • Offline The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Avocado industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry. Keywords: Avocado, Hass, Reed, Fuerte, Food & Beverages, Retail, Cosmetics & Personal Care, Fresh, Processed, Online, Offline