US avocado consumption will continue to grow.

The US is one of the world’s leading consumers of avocados. Over the last decade, demand from the US has significantly increased, which led to a rise in the availability of this produce in the country.

Avocado availability in the US climbed to about 2.8 billion pounds in 2022, compared with 1.8 billion pounds in 2012. According to estimates, there is still room for continued growth in US avocado demand.

The US’ annual per capita avocado consumption recently surpassed 9 pounds (4.1 kg), which represents three times the European consumption. In addition, it is forecasted that US avocado consumption could reach a value of $26.2 billion by 2028, representing an increase of 70%, compared with the $15.4 billion market value in 2022.

How is the US able to meet this constantly increasing avocado demand? This blog will delve deeper into the main contributors to avocado supplies in the US.

The US’ Avocado Sources

Avocado availability in the US is expected to reach 3 billion pounds in 2023. In effect, US avocado imports are expected to account for 40% of total world avocado imports by 2023.

This growing US avocado consumption may prompt California growers to increase avocado production. However, constraints such as lack of water and high land values in the southern part of the state are unlikely to diminish its impact. This is why, currently, the US imports around 90% of the avocado it consumes. Other US avocado sources include Mexico, Peru, Colombia, and Chile.

Among these external sources, the US hugely relies on Mexico’s avocado supplies. Mexico went from contributing 17% of US imports in 2001 to 90% in recent years. In 2022, Mexico alone sent more than 1.8 million pounds of fresh avocados to the US. And in the last three years, Mexico exported 6.7 million pounds of avocados to the US.

More Mexican Avocados Entering the US

The Mexican state of Michoacan concentrates more than 75% of the country’s avocado production, Jalisco produces 10%, and the remaining 15% is distributed among smaller avocado-producing states.

Avocado production in Mexico is also increasing: from 1.1 million tons in 2010, it rose to 2.4 million tons in 2021, an increase of 118.2%, based on the most recent data. Its avocado planting acreage also increased by 75% to 248,000 hectares in 2021, compared with 134 thousand hectares in 2010.

Jalisco, which has been recently approved to ship avocados to the US, is also anticipated to increase its avocado exports to the US as more operators obtain export certification. As of the last quarter of 2022, 695 orchards, 9,441 hectares, 11 packing houses, and 10 municipalities in Jalisco are included in the export agreement with the US. According to the Association of Avocado Producers of Jalisco, by July 2023, between 80,000 to 100,000 tons of Jalisco avocados are expected to be exported to the US.

In effect, Mexican avocado supplies entering the US are projected to increase by 5.2% annually between 2022 and 2028. This could imply a decrease in purchase prices for U.S. consumers.

Similarly, this constant increase in US avocado consumption will help Mexico maintain its position as the largest exporter in the world.

ProducePay’s Role in the Agricultural Sector

At ProducePay, we aim to provide a better produce trade for all stakeholders in the industry. ProducePay Marketplace is an online trading platform that allows growers and buyers to find each other to fulfill their selling and buying needs. Other Marketplace solutions include:

• Market insights, such as updated reports on price, movement, and more.
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• Sustainability programs to assist with meeting their ESG goals.
• Supply chain services that link sellers with pre-vetted third-party logistics partners to ensure a trusted delivery process.

During 2022 alone, we reached more than 700 customers in 10 countries and had nearly $4 billion in transactions through our online marketplace. Contact us to learn more about how ProducePay can help you improve your fresh produce business.

Sources:

Agronometrics. Index Fresh Shares Avocado Forecast for 2023

Farmdoc Daily. Guacamole is Back: Seasonal Production from South America Lowered Avocado Prices

Fresh Fruit Portal. Agronometrics in Charts: Mexican avocados stealing the show once again.

Fresh Plaza. Avocado demand in the US decreases because of the high price of the fruit.

Inspirafarms. Get key information on the 2022 Avocado Market Trends.

Statista. Global avocado production in 2021, by country.

Statista. Supply of fresh avocados in the United States from 2012/13 to 2021/22.

The Produce News. Crowded avocado market to cool last year’s hot prices.

The Produce News. Mexican avocados continue on strong growth path

The Yucatan Times. Jalisco is sending 10 thousand tons of avocados to the US for the Superbowl this Sunday.

USDA. Avocados: U.S. import