Avocado market. Current situation, trends & Forecast
The avocado is a fruit whose status as a superfood is driving its ever-increasing demand for consumption. This fruit thrives in tropical climate conditions and is an excellent source of fiber, vitamins, minerals and monounsaturated fats. The avocado is unique amongst fruit because of its healthy fat content which helps lower bad cholesterol.
Related: 5 Amazing Health Benefits of Avocado
Countries with tropical climates are the top producers of avocado. The top exporters in 2019 are as follows (million US$):
- Mexico $2,789.67
- Spain $384.65
- Chile $329.88
- USA $154.31
- Israel $78.89
- South Africa $70.66
- New Zealand $69.79
- Belgium $69.46
- Morocco $51.42
- Germany $45.92
The avocado market has not been severely stunted by the COVID-19 pandemic Pricing has largely remained firm globally and is expected to continue that trend in 2020.
Peruvian avocado exporters have experience strong growth in previous seasons and expect the trend to continue with increasing demand for the Peruvian product from the US and China.
The Peruvian avocado has become a major competitor for Mexican producers from the Jalisco and Michoacán regions. Jalisco has experienced a late start to its season which has hampered their ability to supply their major markets in Canada, Europe, and Asia.
Colombia is another avocado producer and is expecting its high season during September. The timing has ensured that their peak production months will fall outside the initial shock the COVID-19 caused to agricultural production and the supporting supply chains.
In Europe, there are different scenarios. In France, there has been decreased consumption despite prices falling due to an increase in inventories driven by Peruvian imports that increased in the past weeks.
The same thing happens in the UK, large volumes of Peruvian avocado are flooding the market, but consumption here is better due to promotions from the retailers.
Spain produced large volumes this year, and the season is considered a success despite the coronavirus crisis, this is because demand remained high until the end of the season.
In Germany, there is a slight oversupply. The catering industry used most of the imports, but it practically shut down during the coronavirus crisis. However, in April and May, there was a shortage of avocado supply that leads to increased prices.
Germany is also largely supplied by Peru and South Africa.
News from China indicates that Colombian and American avocados will join those from Peru. China looks to have taken the first steps toward domestic avocado production with an importer having planted avocados in Yunnan.
Avocado is primarily consumed in Central America, but its consumption has grown in the world. This increase in avocado consumption has led to increased demand, prices, and area under cultivation.
Over the last 10 years, the area cultivated for avocados has had an increase of 4%, and the demand has gone from 0.56 kilos per inhabitant per year to 0.74.
In 2017 avocado exports were valued at 6.2 billion dollars. The biggest importer in the world was the United States whose imports were valued at 44% of that amount.
In this market, the use of ozone during the long periods of transit from exporting country to destination presents itself as cost effective solution to delay ripening and extend the shelf-life of this commodity.
The COVID-19 pandemic’s damage to the economy may result in a decrease in demand for avocados, but a report by Rabobank expects that the per capita avocado consumption in 2020 will still show modest growth. By 2021, the report expects per capita consumption could reach 4,08 kilos per person per year.