As the Avocado Industry Grows, Market Competition Intensifies
The value of the global avocado market in 2021 was $13.97 billion, and growth is expected to continue at a compound annual rate of 6.4% through 2027.
North America is leading the global avocado market, driven by trade between Mexico and the United States. The US avocado market was estimated to be worth around $8 billion in 2020 with demand showing no sign of slowing down.
Drivers of growth
As the avocado trade continues to grow, the market will become more competitive, requiring growers to increase their production efficiency and prioritize sustainability.
The future of the avocado market will depend on several factors, but the three most important are:
- Market demand: Global demand for avocados has increased steadily in recent years due to its popularity as a health food and ingredient in various dishes. This trend is expected to continue, especially in countries such as China and India, where avocado consumption is still relatively low.
- Climate change: This factor will significantly impact production since avocados require specific growing conditions, such as warm temperatures and well-drained soil. Some growing regions are already experiencing changes in temperature and rainfall patterns, which may affect yield and quality, leading to price fluctuations and supply shortages.
- Technology: Advances in technology can help increase yields and efficiency in avocado production. For example, precision farming techniques, such as soil sensors and drones, can help growers optimize irrigation and fertilizer use, while genetic engineering can help develop more resistant avocado varieties.
Why is the global avocado market becoming increasingly competitive?
The world avocado market is increasingly competitive for several reasons.
First, the growing demand for avocados worldwide has increased production and international trade. Consumers increasingly recognize avocados’ health benefits and nutritional value, driving a rise in global consumption.
Another critical factor is increased production in different regions of the world. Mexico has traditionally been the leading global avocado grower and exporter, but other countries such as Peru, Colombia, Chile and the Dominican Republic have increased their production in recent years.
This competition among producers has led to greater supply diversification and a reduction in dependence on a single country.
Which countries export and import the most avocados?
The global avocado market has experienced significant growth in recent years, leading to increased exports and imports of this popular tropical fruit.
Mexico has been the world’s leading avocado exporter for many years. This is primarily due to its favorable climate for avocado cultivation, its extensive area dedicated to this crop and, of course, its proximity to the United States.
In Europe, the leading exporters are the Netherlands and Spain. The Netherlands has become a key point for re-exporting avocados because it imports large quantities from different countries and distributes them to other countries within the European Union.
As for imports, the United States is the leading avocado-importing country worldwide, and its demand has grown significantly in recent years, with most products coming from Mexico.
Sources: Produce Blue Book, Mordor Intelligence, Statista