The negative association surrounding vegetable and seed oils, even if based on a misperception, has become a boon for the avocado oil industry.
While technically a kind of vegetable oil, the avocado oil industry has largely escaped health claims targeting cooking oils that typically single out canola, soybean, sunflower and other refined seed and vegetable oils.
The shift in consumer behavior is clear, with the $420.8 million avocado oil market projected to grow at a 6% compound annual growth rate through 2036 to $734.2 million, according to Future Market Insights.
“Food manufacturers, specialty retailers and product developers are integrating avocado oil into product portfolios to meet demand for clean-label ingredients that combine nutritional benefits, functional performance and premium culinary positioning,” according to Future Market Insights. “The oil’s natural composition – rich in monounsaturated fats, antioxidants and vitamin E – continues to strengthen its role in health-focused product innovation.”
The trend was on full display at Natural Products Expo West in early March, where avocado oil-based products distanced themselves from their embattled counterparts.
Xochitl transitions to avocado oil
The health benefits of avocado oil over standard vegetable oil were front and center at the Xochitl booth, a brand known for its crispy tortilla chips.
The Irving, Texas-based chip and hot sauce company announced at the show it has transitioned all of its products from palm oil to avocado oil, noting the latter’s status as a “better-for-you alternative.”
“As a brand rooted in Mexican culture, which honors traditional techniques to craft thin, crispy, melt-in-your-mouth tortilla chips, the avocado itself is a symbolic ingredient and the avocado oil delivers a cleaner, deliciously satisfying, buttery crunch,” the company noted in a press release.
The brand further distinguishes itself in the crowded tortilla chip market with labeling that notes the product is “Made with Avocado Oil.”
“Our commitment to authenticity is unwavering,” said Xochitl CEO Maura Mottolese. “By transitioning our entire product line to avocado oil, we are enhancing the overall snacking experience. This represents a major investment in the quality that our community has come to expect and deserves.”
The transition to avocado oil is a natural fit for the company rooted in Mexican heritage, according to Carla O’Brien, chief marketing officer at Xochitl.
“It has a higher heat point, it has great taste and consumers were really wanting that, so it’s been a great reception from buyers and consumers across the board,” she said.
Jackson’s on a mission
Another chip company at the show, Jackson’s, has been praising the health benefits of better-for-you oils in its products long before Dr Paul Saldino’s appearance on the Joe Rogan Experience podcast in 2020 that kicked off widespread criticism of seed and vegetable oils.
The company’s praise of what they describe as premium oils – particularly coconut and avocado – in its products dates back to its founding in 2013, when founders Scott and Megan Reamer launched the brand in Crested Butte, Colo., as a healthy snack for their son, Jackson, who suffered from a rare autoimmune disorder.
By January 2025, the company, formerly known as Jackson’s Honest, had transitioned all of its products to be manufactured with avocado oil.
“When our son Jackson was diagnosed with a rare autoimmune disorder, our top priority was to find ways to ease his symptoms,” the company explains on its website. “After much trial and error, we discovered that a high-fat, low-carb diet – with an emphasis on coconut oil and other premium fats – greatly improved both his health and quality of life.”
The company, now headquartered in Muskego, Wisc., is known for its sweet potato chips, kettle chips and veggie straws. Jackson’s is a substantial player in the better-for-you chip market, touting its health benefits beyond healthy oil claims.
“Everything we offer is non-GMO, gluten-free, vegan and produced in a nut-free facility, top nine allergen-free,” said Todd Tolis, director of alternative channel sales at Jackson’s. “And we penetrate across all consumer consumption channels, whether that be convenience, drug, mass and supermarkets.”
