- Avocado oil prices in Q1’26 followed a stable-to-soft global trend, supported by steady downstream demand, while improving avocado supply reduced feedstock pressure.
- Feedstock availability improved as Mexico’s avocado production increased, easing raw material tightness for oil extraction and processing industries.
- Downstream demand remained firm from premium edible oils, cosmetics, personal care, nutraceuticals, and foodservice applications.
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.