Spain Avocado Market - Forecasts from 2022 to 2027

Spain Avocado Market is projected to grow at a CAGR of 6.28% from a market value of US$303.687 million in 2020. The market is estimated to reach a valuation of US$465.004 million by 2027.

Ministerie van Landbouw, NatuurenVoedselkwaliteit, the Dutch Ministry responsible for agricultural policy, animal welfare, fisheries, food policy, food safety, forestry, and natural conservation, estimates the avocado sector in Spain to account for €124.7 million per year in earnings. This tropical fruit brought from the Americas by the Spaniards has become popular across the nation due to its extensive healthy and nutritional properties, which have been one of the driving factors in recent times. Moreover, such is the extent of its popularity that the consumption of the fruit has been reportedly growing exponentially, which as of 2018 accounted for 650 million kilos, out of which 74 million corresponds to Spain.

Production practices

In Spain, avocado is primarily grown in Andalucía, constituting 97% of the total production. The fruit is also grown in Málaga, representing 70% of the total production. The acreage of cultivation is approximately around 19,000 hectares which reportedly produced 61,000 tons during the 2018/2019 season, an increase of 17% from the season preceding it. The variant primarily grown by the Spanish growers is the Haas variety, which accounted for 51,000 tons in 2018/2019, while the remaining 10,000 tons comprised Fuerte, Bacon, or Reed varieties. Thus, from the aforesaid, it can be conclusively delineated that the growth prospects of the avocado market in Spain are promising.

The trend of avocado consumption has been on a continuous upward trajectory globally, and that of Spain has been no exception. Just like everywhere in Europe, this trend is primarily driven by the demand for health products and the integration of more naturally derived food products into the diet. Another aspect that is expected to drive the demand for the avocado market in Spain is the increasing availability of ready-to-eat options, which the consumers are more inclined because of the sheer convenience as exemplified by the pre-prepared convenience food range, like guacamole. It is this sort of food product that reportedly allows players who have vertically integrated production and processing operations to close the ripening circuit of the product and obtain an integral sale of stocks.

Concomitantly catering to the growing demand for natural food products, for instance, in June 2019, it was reported that new private label guacamole, which is devoid of any preservatives or gluten and comprises 95% avocado, was launched by Carrefour, which coincided with World Avocado Month organized in Spain by the World Avocado Organization (WAO). Another factor anticipated to drive the avocado market growth in Spain is the proximity to the EU market, which translates to the fact that shippers can organize their orders and ensure the avocados arrive with the desired degree of ripeness with ease.

Key Developments

March 2021: TROPS launches the campaign 'TROPS Avocado, the best avocado in the history of avocados' to encourage the promotion and consumption of avocado at a national level.

September 2021: Las Lomas has announced that they have started their next phase of Avocado tree planting, after debuting their successful Avocado project for the UK market earlier this year. The company claims to have planted roughly 500 hectares of avocados in Spain so far, with another 450 hectares projected to be planted by 2025.

Impact of the COVID-19 pandemic

The COVID-19 pandemic led to the closure of major industries and sectors, leading to a drop in revenue and economy. The Spanish avocado market faced an initial decline in sales, due to the disruptions in supply and production chains, however, the market quickly rebounded, owing to the steady demand for avocados in domestic and foreign markets. According to Eurostat, Spain recorded a production volume of about 99,000 tons in 2020. Owing to the growing production rate, Spain has also been named the second-largest producer of avocados in Europe. Moreover, with the growing demand for healthy food habits and with the lifting of COVID-19 regulations, the market is expected to grow further.

Segmentation

By Type

• Hass Avocado
• Bacon Avocado

By Industry

• Food and Beverage
• Cosmetic

By Distribution Channel

• Online
• Offline
• Convenience stores