Avocado Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Avocado Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The avocado market is projected to register a CAGR of 6.4% during the forecast period 2022-2027.

Amid an extraordinarily rapid decline in global economic activity and international transport, global supply and demand for avocado experienced COVID-19 pandemic-related disruptions and contractions through several channels of transmission. On the supply side, the adverse effects of physical distancing measures tended to be more immediate for the relatively labor-intensive production and trade of avocado. Given their high perishability, avocados require timely and well-coordinated harvesting and post-harvest handling, and uninterrupted cold chains. Delays in supply chains were particularly troublesome for avocados due to shrinkage in transport during the pandemic-induced lockdowns, which affected product quality and reduced the weight and value of shipments received by importing countries. The production of avocados in South Africa decreased by 2% in 2020.

Avocados contain vitamins A, B, C, E, and K, including 25 essential nutrients. They also contain phytochemicals, like beta-sitosterol, and antioxidants, like lycopene and beta-carotene. The essential nutrients are boosting the demand for the fruit globally, and therefore, this acts as a major driving force behind the growth of the avocado market. The demand for avocados is increasing globally due to their health benefits, as they improve vision, prevent heart-related diseases, and help improve digestion. The increased demand across the globe has resulted in increased production. According to the FAOSTAT, avocado production was 7.1 million ton in 2019, which increased by 10% and reached 8.1 million ton in 2020. Mexico is the top avocado-producing country in the world. The total production area is around 415,520 acres, which produces 1.52 million ton every year.

The seasonal demand and increasing awareness of avocados’ health benefits are resulting in an increase in the demand. The growing consciousness among consumers regarding their health, whose concerns can be met by avocado since it is a superfood rich in omega and other multi-nutrient quality, has helped drive the avocado market worldwide. The avocado is one of the most nutrient-dense foods available. The fruit is rich in fiber, folate, potassium, vitamin E, and magnesium. Moreover, the expanding food retail business and the growing product launches of avocado-based products such as dips in fast food retailing giants have increased the demand for avocado usage in continental cuisines and other cuisines by restaurant chains.

Avocado is mainly produced in California, Florida, and Hawaii in United States. California accounts for 95% of the production in United States. The California Hass avocado, on average, weighs about six ounces (170 grams). Cold-hardy varieties of avocado are grown in the Gainesville region of Florida. These can be grown only in tropical or sub-tropical climates, as avocado trees cannot tolerate freezing temperatures. Avocado production in United States is heavily impacted by weather conditions and hence, shows yearly variations. Avocado has a large number of varieties, and Hass is the most popular one in United States. Few varieties of avocados are also grown during the winter season. Avocado consumption is expected to keep increasing steadily with the increase in the population in United States. Monthly shipments of avocados to United States set a new record in 2021 at nearly 320 million pounds, representing a 33% increase.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support