How to Start a Manufacturing Business For Avocado Oil

Avocado oil is a monounsaturated oil that is extracted from the flesh of the avocado fruit. The oil is known for its high smoke point, making it suitable for high-heat cooking methods. Avocado oil has a rich, buttery flavor and is often used as a salad dressing, as well as cooking oil for sautéing, frying, and baking. It is also used in cosmetics and skin care products as a moisturizer, due to its high content of healthy monounsaturated fats, vitamins, and antioxidants, which are beneficial for the skin and hair. Avocado oil is also known for its anti-inflammatory properties, which may help to reduce the risk of certain health conditions.

Visit this Page for More Information: Start a Business in Edible Oil Industry

Starting a manufacturing business  of avocado oil can be a great opportunity for entrepreneurs who are looking for a profitable venture in the food industry. Avocado oil is a versatile and healthy oil that can be used for cooking, skincare, and hair care. The global avocado oil market is projected to grow at a substantial rate due to increasing demand for natural and organic products.

The global avocado oil market size was valued at USD 4.9 billion in 2020, and it is expected to expand at a compound annual growth rate (CAGR) of 8.5% from 2021 to 2028. The market is driven by the increasing demand for healthy and natural food products, and the growing awareness about the health benefits of avocado oil. The increasing demand for avocado oil in different regions, such as North America, Europe, Latin America, and the Middle East and Africa, is also providing an opportunity for manufacturers to expand their business globally. Additionally, the limited availability of avocados in certain regions, along with the variations in the quality of the avocados, are also hindering the growth of the market.

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Market Size in Kenya:

The avocado market in Kenya is relatively small compared to other countries, but it is growing at a steady rate. According to a report by the Agricultural and Processed Food Products Export Development Authority (APEDA), India’s avocado exports have been increasing in recent years. In the fiscal year 2020, India exported around 11,000 metric tons of avocados valued at around 19 million USD. The major destinations of avocado exports from Kenya are UAE, Saudi Arabia, and Oman.

There is a high demand for avocados in Kenya, as it is being used in various forms like guacamole, smoothies, and desserts. Its high nutritional value and increasing health consciousness among people have also contributed to the rising demand for avocados.

Additionally, with the rise of e-commerce, it has become easier for consumers to purchase avocados online, which has also contributed to the growth of the market. The avocado oil market in India is also very small, but it is slowly gaining popularity as a healthy cooking oil alternative.

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As the awareness of the health benefits of avocado oil grows, it will likely drive market growth in India. While the market is still in its early stages, there is great potential for growth and expansion.

Benefits of Manufacturing Avocado Oil:

Manufacturing avocado oil has several benefits including:

1.  Avocado oil has a high smoke point of around 520°F, making it suitable for high-heat cooking methods such as frying, sautéing, and grilling.

2.  Avocado oil is high in monounsaturated fats, which are beneficial for heart health. It also contains antioxidants and anti-inflammatory compounds.

3.  Avocado oil can be used for cooking, as a salad dressing, or as a moisturizer and hair treatment.

4.  Avocado oil can be made from avocado fruits that are not suitable for consumption as fresh produce, making it an environmentally friendly option.

5.  Avocado oil production creates jobs and generates income for farmers, processors, and manufacturers.

6.  Avocado oil is a popular ingredient in cooking and cosmetics, and demand for it has been growing in recent years.

7.  Avocado oil can be exported to other countries, creating an additional revenue stream for the business.

8.  Avocado oil has a long shelf life and can be stored for extended periods without spoiling, making it a practical product for manufacturers to produce.

Raw Materials Requirement:

Raw materials are required depending on the specific manufacturing process and the desired end product. The following are some of the specific raw materials and equipment;

Avocado fruits: These are the primary raw material required for the production of avocado oil. They should be ripe, fresh, and in good condition.

Equipment: A variety of equipment is required for the manufacturing process, including a mechanical press or solvent extraction system, filters, and refining equipment.

Solvents: If the solvent extraction process is used, solvents such as hexane may be required to extract the oil from the avocado paste.

Packaging materials: Bottles or jars and labels are required for packaging the oil.

Additives: Some manufacturers may choose to add natural or artificial flavorings, colorings, or preservatives to enhance the taste, appearance, or shelf-life of the avocado oil.

Other materials: Other materials that may be required include cleaning supplies, safety equipment, and tools for maintaining and repairing equipment.

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Registration and Licence Required:

Starting an avocado oil manufacturing business may require obtaining various registrations and licenses depending on the location and scale of the business. Some of the key registration and licenses that may be required include:

·        Business Registration

·        FSSAI (Food Safety and Standards Authority of India) Registration

·        Food Safety and Hygiene Certificate

·        Environmental Clearance

·        GST Registration

·        No Objection Certificate

Land Acquisition:

Acquiring land is an important step in starting an avocado oil manufacturing business. The land should be appropriately zoned for industrial use and should be large enough to accommodate the manufacturing facility, as well as any necessary storage and parking areas. When looking for land, it is important to consider factors such as location, accessibility, and infrastructure. A location that is easily accessible by road and has access to utilities such as electricity, water, and waste management services is ideal. If the business plans to grow its own avocados, it is also important to consider the suitability of the land for avocado farming.


The investment required for an avocado oil manufacturing business can vary widely depending on the scale of the operation and the specific manufacturing process used. A small-scale operation can be started with a relatively lower investment, but a large-scale operation requires a considerable amount of investment.


In conclusion, starting an avocado oil business can be a challenging but also rewarding experience. The avocado oil market is relatively small in India but it is growing steadily. We have covered how to start a successful avocado oil manufacturing business. But before you get started, it is important that you do your research and be sure of the best practices that will work for your situation

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