Canada Avocado Market Overview, 2029

Canada Avocado Market Overview, 2029

From sea to sea, Canada is turning green as avocados step out of the exotic status into everyday essential, showing even the chilliest regions can't help but delight in the tropics. In Canada, technological innovation has started to take over the avocado market, particularly in supply chain optimization and farming practices. The origin attestation and traceability for quality from farm to table are some of the aspects being studied relating to blockchain technology on avocados. Agricultural innovation, like pest and drought resistance, is the development of avocado varieties in helping it with more realization in yields and sustainability. Avocado producers are switching to intelligent agriculture, from drones and other field sensors to data analytics, in farming. This technologies monitor soil health, water use, and plant conditions to get effective and sustainable production. The sales of avocados are also widespread because of the sudden increase in e-commerce platforms. Online supermarkets, deliverers, and other participants in the sale of avocados online have reported increasing sales. The high momentum evidently derives from convenience in home delivery and the possibility of reaching consumers in distant regions. The trade policies and agreements of Canada have been great sources of the avocado market. NAFTA (now USMCA) agreements facilitate imports of a large amount of avocados from Mexico and the United States, providing a steady supply. CFIA enforces rigorous regulatory standards regarding quality and safety at the importation of avocados, hence the help in maintaining consumer confidence. Increasingly, avocado production could harm the environment by lifting the concerns of most Canadian consumers who are keen on sustainability. Some of these drivers to great extents are high consumption of water and deforestation in the producing countries. An interest that is also seen to be growing is in avocados sourced from producers following fair trade practices, thus promising fair wages and working conditions for farm workers. These key Canadian avocado market players are large importers and distributors who handle the logistics from the producing countries to the local retailers. On the retail front, retailing giants like Loblaws, Sobeys, and Metro have critical shares of the market and strengthen their possession through large distribution networks.

According to the research report ""Canada Avocado Market Overview, 2029,"" published by Bonafide Research, the Canada Avocado Market is anticipated to grow at more than 7% CAGR from 2024 to 2029. The makes a resilient supply chain one of the increasingly important priorities for stakeholders in the avocado market. Diversification in sourcing regions is being done to minimize the effect of possible climatic or political disturbances to the supply of the primary producing countries. Investments in cold storage facilities and improved transportation logistics increasingly enable the delivery of a constant supply of fresh avocados all year round. The supply chain will be resilient through joint collaborations with foreign suppliers and upholding the quality standards. The consumer preference, especially in Canada's market, is a quickly changing environment; there is an increasing interest in organically produced products and that are straightforwardly sustainably produced. In some studies carried out, most customers would be willing to part with more money to access organically produced avocados or that are certified farm for fair trade. Taste, texture, and avocado ripeness at the time of sale are paramount and can be key transactional drivers. Retailers have responded with offerings that range from ready-to-eat, ripe avocados to value-added packing solutions aimed at extending shelf life. The awareness and demand for nutritional benefits of avocados is rising among Canadian consumers. Avocados are an excellent source of monounsaturated fats good for the heart full of fiber, vitamins, and antioxidants. These benefits come to the fore through health campaigns and educational initiatives by health organizations and food retailers, encouraging consumers to include them in their diets. All these efforts have raised greater awareness and encouraged increased consumption, thus growing the market. Canadian retailers make use of a variety of strategies to move avocado units, including strategic in-store positioning, offering promotional discounts, and product bundling with other health-oriented foods. In-store displays are designed to include avocados merchandised with other other related items, such as tomatoes, onions, and lime, that would be purchased along with them to make guacamole. The retailers run promotions in order to drive more customers to purchase and increase the volume of sales during high volume seasons. There are both incumbents and new entrants competing for a share of the consumer market for avocados in Canada. More generally, in addition to regular avocados, there is growing competition from value-added avocado products in the market, such as avocado oil, avocado-based snacks, and pre-made guacamole.

The avocado market has experienced tremendous growth in the recent past due to an increase in consumer demand for this highly versatile and nutritious fruit in Canada. Commercial cultivation of avocado is impossible due to adverse climatic conditions; thus, the avocado market solely relies on imports, offering a number of different varieties to suit consumers' tastes. Hass avocados are the most popular and widely available variety in the Canadian market. They form the bulk of avocado sales. Characterized by their creamy texture and rich flavor, which is nutty, Hass avocados have pebbly skin that turns dark purple-black when ripe. So versatile in the kitchen, they are used for everything from guacamole and salads to sandwiches and even smoothies. Hass avocados are available year-round in Canada, with primary imports from Mexico, California, Peru, and Chile. The reliability of the supply and superior eating quality established a position for Hass avocados in every Canadian home and restaurant. Reed avocados are still another type that from time to time is seen in the Canadian marketplace but is not as widely available as Hass. They are larger in size and have a rougher, thicker skin than a Hass avocado, that also when ripe remains green. Reed avocados are known for their milder flavor and slightly firmer texture than Hass. They are available from summer, thus offering seasonal competition to Hass. Reed avocados are usually used in salads and sandwiches; therefore, they please the consumer who wants a little less of an avocado taste. Fuerte avocados were one of the more famous commercial varieties until now found on rare occasions in the Canadian market. They have smooth, thin skin that is easily peeled and are pear-shaped. Fuerte avocados have a light, creamy flavor with a slightly stringy texture. Their seasonality usually runs from late fall to early spring. Though their share is smaller, Fuerte avocados retain a niche with consumers who truly love these characteristics and appreciate the avocado seasonality. Some avocado cultivars are rarely present in the Canadian market besides Hass, Reed, and Fuerte. This includes Bacon, Pinkerton, and Zutano avocados with their typical characteristic features. Avocados produced by Bacon have a smooth, thin skin and are mild-flavored. The fruits of Pinkerton are long-shaped and nutty in taste. Zutano avocados have a shiny, yellow-green skin and are rather mild in taste, somewhat fibrous in texture.

The Canadian avocado market has convincingly grown across all end-user segments in food and beverages, retail, cosmetics and personal care, among others. Avocados, in relation to Food & Beverages, have definitely made a strong foothold in restaurants, cafes, and food service institutions in most parts of the country. They are now an ingredient staple in everything from the most classic guacamole to the most cutting-edge fusion cuisine, epitomizing the very diversity that characterizes the culinary scene in Canada. This fruit, thus, is versatile and full of nutritional benefits that have made it a darling to health-conscious consumers and a staple in many Canadian kitchens. There is also sudden demand pressure for the retail segment, as major supermarket chains, independent grocers, and specialty food stores are increasing their avocado offerings. Many retailers are now stocking varieties, organic options, and ready-to-eat avocados to try and meet the varying consumer tastes. The avocados have also been adopted by the Cosmetics & Personal Care sector for skincare, hair treatments, and natural cosmetics. The others category includes niche markets, which involve health food stores, fitness centers, and meal kit delivery services that have adopted avocados into their product lines and as dietary recommendations. The popularity of plant-based diets and vegetarianism has been increasing all over Canada, therefore boosting avocado consumption in all these segments. There is increased demand for sustainably sourced and organic avocados with increasing health and environmental consciousness in Canada. Specialty supply chains are proliferating to meet this demand as fair-trade and eco-friendly avocado products become available in the Canadian market. Increasing demand for avocados also made the investment worthwhile in innovative developments in packaging and ripening technologies that make a longer shelf life and reduce waste, answering to concerns about the environmental impact of the fruit and the challenges of long transportation to Canada.

The avocado market is mainly divided into two major segments are fresh avocados and processed avocado products, both playing an important role in consumer demand. Fresh avocado dominates the Canadian market, and industry growth is substantially affected by the growing trend of healthy eating and the rise of diets that emphasize eating natural and whole foods. Fresh avocados are preferred because of their high nutritional value in healthy fats, fibers, vitamins, and minerals, which is bound to be very well aligned with the dietary preference of many Canadians. This growth in this segment is driven by robust imports primarily from Mexico, the world's biggest avocado producer, and from the United States and other South American countries. This has kept the offerings of fresh avocados from most retailers and supermarkets across Canada within easy reach of consumers. Fresh avocados are also used in many dishes, from salads and sandwiches to the extremely popular guacamole, which has been a staple in many Canadian households. Marketing strategies that focus on health benefits and versatility have contributed to wide acceptance of it in most places as well. Although the processed avocado segment is much smaller than that of fresh, it is rapidly growing. This includes products such as guacamole, avocado oil, and frozen avocado slices that meet consumer demand for convenience. The processed avocado market rides on the same health trend that has been driving fresh avocado sales, but it also caters to consumers seeking ready-to-eat or easy-to-use options. Guacamole, for example, has become rather popular as a dip and a spread, offered in different package formats to accommodate several uses of consumption. Avocado oil became highly popular as a cooking oil due to its significant smoke point and health benefits. Frozen avocado products provide convenience in terms of extended shelf life and ease of use, both at home and in the food service area. The innovations in processing techniques and novel package types that improve the quality and outlook of these products have made them integral parts of the avocado market in Canada.

The Canadian avocado market has grown quite considerably, due of course to both online and offline distribution channels. Online distribution has recorded strong sales. Some of the top online retailers, which include Amazon.ca, Walmart.ca, and Loblaws' online grocery platform, added avocados to their product offerings. This gave consumers the convenience of shopping from home and having the products delivered to them at their front doors. On the other hand, the off-line distribution channels were dominated by sales from traditional brick-and-mortar stores like conventional supermarkets, grocery stores, and specialty food stores, where the bulk of Avocados, 80%, are sold. These stores sell a variety of avocado products are fresh avocados, guacamole, and avocado oil. Key players in the Canadian avocado market include Loblaws, Sobeys, Metro, and Whole Foods Market Canada, operating an expansive network of stores across the country. Growth in the Canadian avocado market is driven by consumer demand for healthier and more nutritious food options. Avocados are considered a health food with high contents of nutrients and antioxidants and are increasingly finding their way into Canadian diets.



Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Avocado market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Hass
• Reed
• Fuerte
• Others

By End User
• Food & Beverages
• Retail
• Cosmetics & Personal Care
• Others

By Form
• Fresh
• Processed

By Distribution
• Online
• Offline

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Avocado industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.
Keywords:
Avocado, Hass, Reed, Fuerte, Food & Beverages, Retail, Cosmetics & Personal Care, Fresh, Processed, Online, Offline