The avocado (Persea americana), known as butter fruit, is typically consumed fresh in developing countries. The quality of the avocado fruit normally diminishes along marketing and packaging processes—often not reaching its destination in its optimal condition. To increase commercialization and add value, it is important to develop avocado-based food products with a shelf life that is long enough to maintain supply chain integrity. This study was conducted to develop a healthy avocado-based spread, incorporating selected spices, with an extended shelf life as a functional food product. Commercially available spreads mostly contain saturated fats, thereby raising health concerns. This avocado-based spread is a developed product that offers a nutritious alternative aligned with the growing demand for healthier vegan food options. Eight formulations were developed, varying the ingredients according to the Taguchi method. The most preferred formulation was selected based on a sensory evaluation. The spread exhibited an extended shelf life up to three weeks without undesirable color changes under refrigerated conditions. Proximate composition revealed a high moisture content (72.83%), moderate fat (11.04%), low fiber (5.26%), and an even lower protein content (1.8%). The fatty acid profile showed that the spread has a high monosaturated fatty acid content mainly consisting of oleic acid at around 65.73%. The mineral profile revealed that the spread is rich in potassium and sodium. The photochemical profile showed the product’s potential as a functional food, including the presence of phenolic compounds (1.92 ± 0.16 mg GAE/g), flavonoid compounds (0.08 ± 0.0026 mg QE/g), and antioxidant compounds (5.27 ± 0.09 mg TE/g). The rate of peroxide value increased over time and varied significantly between refrigerated and room temperature conditions (p < 0.001). The developed avocado spread offers a nutritious vegan-friendly alternative with extended shelf life.