China Avocado Market Overview, 2029

China Avocado Market Overview, 2029

Avocado entry into the Chinese market dates back to the early 2000s and is spurred by increasing international trade and exposure of consumers to global food trends. At that time, avocados were a niche product found mostly in high-end supermarkets and specialty stores, only operating in the largest urban centers. This was considered very premium, even though the price was much higher than regular produce, thus diffusing very poorly in the first years of introduction. The market share began to rise in China around 2010, driven by upwardly mobile people whose health consciousness caught up with these health benefits of avocados. The more people learned about these health benefits, the more popular avocados became. At the same time, with the popularization of e-commerce platforms and the rise of international food fashion, avocado became easier to source and more visible. By the late 2010s, avocados could increasingly be found in mainstream supermarkets and restaurants as a signal of their growing acceptance among Chinese consumers. Fast forward to the 2020s and China's avocado market has skyrocketed. The shifts in consumption have been accelerated by the COVID-19 pandemic, which promotes online grocery shopping and puts health and wellness on a higher platform. The avocados are sold in China in various ways. The main way is for it to be sold fresh in supermarkets and hypermarkets due to the largest share of all sales and in highly diverse assortments of other fruits, which were also imported. In addition, online grocery platforms such as Alibaba's Tmall and JD.com turn into more vital ways of avocado distribution, allowing adding convenience for consumers to buy avocados from home. Specialty stores and organic markets that deal in high-end produce form another avenue to service this demand. For example, the expansion of online grocery delivery services has made it relatively easy for consumers to order a couple of avocados and experiment with new recipes. Some of the incentives on the avocado market in China are a free trade agreement with Peru and comprehensive strategic agreements with Mexico. They both secure preferential trade conditions and lower tariffs on their import of the fruit. Such agreements are important in improving the avocado supply at better prices. It also ensures and enforces strict standards and quality control measures on imported avocado by the Customs Administration to ensure the avocados in the market are safe and of high quality. Various challenges face the avocado market in China.

According to the research report ""China Avocado Market Overview, 2029,"" published by Bonafide Research, the China Avocado Market is anticipated to grow at more than 9% CAGR from 2024 to 2029. The first one is the price of avocados, which is high due to tariffs on imports and the high cost of transportation, making them very expensive for price-sensitive consumers. The challenge is associated with their perishability since efficient cold chain logistics should be in place to avoid quality. Other challenges will be that avocados face stiff competition from other imported fruits and the domestically grown ones. For example, avocados compete with other staple fruits such as apples and bananas which are relatively cheap and widely available. Avocado consumption increased and turned into a staple in many households and restaurants. Improved infrastructure in chain supply, together with the effects of boosting trade agreements, makes importation to be easier and therefore increases availability all over the country. China is not a significant producer of avocado but turns into a prominent importer; its avocado consumption indeed increases, so too is imported from main producing countries. In the past years, China has been increasing the local production, especially in those provinces like Hainan and Yunnan perfect for avocado farming because of its climatic conditions. The opportunities that avail themselves for the avocado market in China are a local growing industry, the innovation of avocado product, and leveraging e-commerce. Investing in local growing of avocados will ensure that there is a decrease in imports and an increase in the access to fresh and quality avocados. In addition, avocado-based products, such as guacamole and avocado oil, are in line with the emerging interests of consumers in the fields of convenience and premium quality of food. Increased e-commerce would make it reach out to the broader audience and also boost up a growth in the market. Avocado consumption in China became varied with the fruit finding its place in a host of culinary applications. The initial customers who adopted the use of the fruit were health-conscious consumers and foreigners. It gained favor with the mainstream only recently.

Avocados are being used nowadays in not only the classic preparations, including avocado toasts and salads, but also in some truly new, innovative recipes, for instance, avocado smoothies and avocado sushi rolls. Key metropolitan cities with large cosmopolitans exposed to global food trends, such as Shanghai, Beijing, and Guangzhou, led in avocado consumption. The global demand with respect to avocados in terms of China is very heavy and depends on imports. Major exporting countries into China include Mexico, Peru, Chile, and Kenya. In fact, Mexico is one of the top suppliers to China due to the trade relationship that has been established and the close proximity to the Chinese market. In 2023, the largest volume of avocado imports into China came from Mexico. Peru and Chile are also very relevant in the market, and their avocados break into the different consumer channels of China. Visa-a-vis volume, avocado import seems to be emulating increasing demand and efficiency in free trade agreements and logistical improvements. Recent developments, such as the China International Import Expo, once again brought avocados to even greater public attention through a forum of international avocado suppliers selling their products directly to the Chinese consumer and retailers. More so, the China Food Safety Law oversees stringent rules concerning food safety that are likely to impede the ways in which avocados will be imported and marketed.

The avocado market in China is dynamic and diversified, hosting hundreds of competing avocado varieties. Out of these, the Hass variety is the clear market leader, capturing more than 90% market share. Hass avocados have a creamy texture, nutty flavor, and year-round availability; Hass avocados are sourced mainly from countries like Mexico, Chile, and Peru. This could be because Hass has been heavily marketed and consumers are familiar with this product. According to Hass, the next niche product is Reed avocados, which have their demand due to their peculiar taste and bigger seed. Coming from the United States and Chile, Reed avocados usually dominate during summertime until early fall. Fuerte avocados have smooth, thin skin and a watery texture, which has an even smaller market share, as they are seasonal and not so well known to consumers yet. Most of them are imported from Chile and Mexico, with the importation season being late fall to early spring. Other varieties include Bacon, Zutano, and Pinkerton avocados, which are available in very small portions, meeting the needs of a few consumers; they are often in high-class restaurants and specialty stores. The avocado market has recently grown in China, driven mainly by growing awareness among consumers about the health benefits of the fruit, as well as a growing appetite for international cuisines. Avocados are imported into China to satiate demand, and imported varieties dominate the market because domestic production is limited. With the constant maturation of the market, there is huge potential for growth, while the offering of avocado varieties is also possible to different consumer segments. Strong demand from China will continue to be a driving force in the avocado category as health consciousness and gastronomic exploration are on a steady rise among consumers.

In recent times, the avocado market has been recording high growth in China. Other than this, this popularity was spilling over into a host of end-use segments. The range of uses of avocados in food and beverages is wide-ranging are guacamole and avocado toast have been well embraced, as also a host of avocado-based smoothies and milkshakes. With the winds of health consciousness blowing across China, consumers reach out to healthier options, and avocados have turned out to be the newest superfood loaded with healthy fats, vitamins, and powerful antioxidants. Increasingly, avocados occupy more shelf space in the retail sector within grocery stores and supermarkets. Specialty produce sections are giving more shelf area to a great variety of avocado types, from the common Hass to other cultivars less well-known. This has facilitated more Chinese families to try using avocados in their food preparation at home. Retailers are also touting the fruit's versatility with recipes and prep tips to help educate consumers on ways to get avocados into their diet. The avocado mania has ed into the cosmetics and personal care industry, which cashes in on the fruit for its enriching properties in a myriad of beauty products. Avocado-based face masks, moisturizers, and hair care products will keep on rolling as Chinese consumers turn to nature and flora for their skincare and grooming regime. The extracts of avocados have already found their way into formulations by leading cosmetic houses, said to bring along associated health benefits and feelings of indulgence and luxury from the superfood. Besides these large end-use sectors, there are also growing applications of avocados in the food service industry, notably high-end restaurants and cafes that specialize in special dishes. Yet another trend is that avocado-themed merchandise is cropping up in everything from homeware to apparel, paving the way for avocado-adjacent products to reach the Chinese consumer.

Over the past years, the avocado market in China has retained its division into two separate categories include fresh and processed. Fresh avocados, once a niche product in this country, now steadily enjoy mainstream popularity as consumers become more aware of the nutritional value hidden behind this fruit. Growing health consciousness, combined with that of the rising middle class, has driven demand for fresh avocados rich in healthy fats, vitamins, and minerals. Interest in the fruit is gaining momentum, with retailers and supermarkets in China expanding their offerings while import volumes of fresh avocados increase significantly. On the other hand, some of the products involved in the processed avocado segment are avocado oil, guacamole, and avocado-based snacks. Growth in this segment will soon be high due to the increasing inclusion of avocados into a myriad of processed food products. Processed avocados offer convenience and versatility, which will continue to make them attractive to food manufacturers and health-conscious consumers on the go. The product with massive growth potential is avocado oil, which enjoys a high smoke point while also boasting a high nutritional level, topping it in food and, in fact, cosmetics applications. An effective supply chain, consisting of effective logistic and distribution channels, supports the China avocado market by ensuring the fresh product reaches the consumers promptly. Market principals invest in constructing cold storage for avocados and improved packing techniques for avocados that will guarantee fresh, high-quality products with an increased shelf life at the retail level. The outreach of the market and the availability of its products are also improved by the partnerships local distributors make with international growers.

The avocado market in China is fast-changing, with online and offline channels as the twin strategies for distribution. Online avocado distribution has increased considerably as a result of the explosion in e-commerce in the country. There is a growing tendency among Chinese consumers to rely on online platforms for grocery shopping, including fresh produce like avocados. Large e-commerce firms, such as Alibaba's Tmall and JD.com, open special areas for fresh fruits, where consumers can easily buy avocados at home. Besides offering competitive prices and promotions, home delivery services make these channels much more convenient to reach avocados. Besides, the rise of online-to-offline models makes it easier to integrate with local delivery services, thus providing greater convenience to consumers. Especially in new first- and second-tier cities, this trend is more advanced with fast-growing demand for fresh and healthy food. The other way around, offline distribution still holds a large chunk in the avocado market of China. Traditional sales channels include supermarkets, hypermarkets, and local grocers. Most avocado consumers in China prefer to see fresh produce with their own eyes before buying, hence giving brick-and-mortar stores a competitive edge. With increasing interest in healthy eating by consumers, more and more retailers like Walmart and Carrefour are now stocking avocados. The ability to hold promotional activities and in-store tastings will help augment the market through offline market activities. The former shall raise consumer awareness with respect to the benefits and usages of avocados in order to promote their consumption.



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