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From Super Bowl parties with guacamole to beloved avocado toast at brunch, somehow, it feels like the United States avocado market has grown into a multibillion-dollar industry to satiate the creamy green cravings for superfoods in America. Avocados find their fame in many things are heart-healthy fats, fiber, and vitamins swim inside them, boosting their popularity. This greatly increases the market size and places the country as one of the largest avocado consumers in the world. The per capita consumption is also rising, hitting approximately 8 pounds per American in 2020, which represents the fruit's integral positioning in modern diets.This report comes with 10% free customization, enabling you to add data that meets your specific business needs.
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To this end, avocados really are cleaning house with respect to their return to the American diet because of versatility and health benefits that have sealed their place. These range from the normal guacamole to other niche applications that range into avocado toast and even smoothies. Value addition within the avocado market has been linked with innovative pioneering majorly in terms of ready-to-eat guacamole and avocado snacks and beverages. Improvements made in packaging technology have served to increase the shelf life of avocados; this has become handier for the consumer and reduces food wastage. There is also a growing supply of organic avocados, which find consumers concerned about sustainability and organic farming practices.
Traditionally, avocado marketing touts health benefits, and campaigns most of the time relate the food to heart health and weight management. Social media did much for the popularization of avocados, especially in younger demographics. The development of value-added avocado products like avocado oil and pre-packaged guacamole has been more of a driver for market diversification and increase in consumers. The prices of avocados can vary in the U.S. due to various factors, which range from climatic conditions to increases in labor costs and even trade policies. The general trend, has been that they become more affordable with improving supplies from the domestic and international market, thereby reducing the price pressures.
This stability in price has also supported the rising consumer demand, which very genuinely places the avocado at the forefront of a staple in the American household. Trade agreements, especially NAFTA and USMCA, aid the importing of avocados from Mexico and other countries into the U.S. market. Domestic agricultural support programs and subsidies help keep local production viable, but imports still dominate the market.
Import requirements in both USDA and FDA ensure that avocados imported into the country meet standards of quality and safety, hence giving consumers the assurance. For instance, in November 2020, Earnest Eats launched a unique line of snacking made from frozen slices of real avocado seasoned with sea salt and spices. These new avocado snacks are available in three flavors such as Sea Salt, Sea Salt Lime, and Roasted Chipotle.
According to the research report "US Avocado Market Overview, 2029" the US Avocado Market is expected to reach a market size of more than USD 6 Billion by 2029. Demand for avocados has grown radically during the past couple of decades. While part of this can be attributed to increased consumer health awareness, the fruit has also been adopted by innovative diets, such as ketogenic and vegan diets, which are now being very popularly adopted in mainstream culture. It's just demand part of a bigger trend toward eating healthily and incorporating healthful foods into daily meals. Avocados are domestically grown in California, Florida, and Hawaii, but Hass is the most cultivated.
Nevertheless, due to the extremely high demand, most avocados consumed in the country are imported from Mexico, which reportedly supplies around 80% of all the imports. Other major suppliers include Peru, Chile, and the Dominican Republic. The extensive supply chain ensures that avocados are consistently supplied all year round to satisfy the increased consumer demand. Avocado farming makes a superb contribution towards the economy of the U.S. through the employment of thousands of people along the farming, distribution, and retail chain. Avocados are among the essential products that continue to keep most of the supermarkets and restaurants in business and realize high sales and profits.
It does not stop at sales but also includes jobs and other activities related to production, including all economic activities risen from the avocado supply chain. Strong drivers in avocado consumption by the young consumers-particularly the Millennials and part of Gen Z-are driven by health trends and wellness. In the Hispanic population living in the United States, avocado consumption is strong, representing cultural preferences.
This means geographically high avocado consumption in states with large Hispanic populations, such as California, Texas, and Florida, where healthy eating is extolled. For instance, In September 2022, Mission Produce Inc. announced a state-of-the-art greenfield ripening, packing, and forward distribution centre in Dartford, U.K. - a location with direct access to major international ports and transportation networks.
The avocado market in the United States is well developed and diversified, offering a wide range of varieties to suit the diverse taste and preferences of consumers. The most common varieties are Hass, Reed, Fuerte, and a few others that contribute to such diversity. Hass avocados comprise nearly 95% of the avocados consumed within the United States. The Hass avocado variety is identifiable by its creamy texture and rich, nutty flavor, with pebbly skin that will turn dark purple-black when it's ripe. So versatile in the kitchen, they're used for everything from guacamole and salads to sandwiches and even smoothies. Hass avocados are available year-round.
Key growing regions include California, with imports from places like Mexico, Peru, and Chile. The consistent supply and superior eating quality have established them as a staple in American households and restaurants. Reed avocados are another variety well known in the U.S. market, though they do not occur as frequently as Hass. They are larger in size, many times weighing over a pound each, with a smoother, thicker skin that remains green when ripe. The reed avocado has a milder flavor and slightly firmer texture than that of the Hass. It is also available late summer into early fall, making it a seasonal alternative to the Hass avocado.
The reed avocado is great for salads and sandwiches due to its milder flavor, which makes it appeal to consumers that don't want a strong avocado taste. Fuerte avocados were once the main commercial variety in the United States but have been overshadowed by Hass. They have smooth, thin skin that peels easily with a pear shape. Fuerte avocados have a mild flavor with a creamy taste and a slightly fibrous texture. They are in season from late fall to early spring. Although their market share has become smaller, Fuerte avocados retain a niche of consumers due to consumer preference for the unique characteristics and seasonal availability.
Except in occasional times, one get other varieties in the U.S. market besides Hass, Reed, and Fuerte. These include Bacon, Pinkerton, and Zutano avocados with their attributes. The Bacon avocado will have a smooth thin skin with a mild, creamy flavor, while the Pinkerton will be elongated with a rich, nutty taste. Zutano avocados have a shiny yellow-green skin and a flavor that is mild with some fiber.
The US avocado market is segmented into end-user segments, which include Food & Beverages, Retail, Cosmetics & Personal Care, and Others. In the Food & Beverages industry, avocados have become a staple for restaurants, fast-casual chains, and food service establishments, cropping up in a range of dishes from guacamole to California rolls and the trendy avocado toast. The versatility of the fruit, together with its nutritional benefits and association with healthy eating, has therefore made it one of the most popular ingredients in both traditional and innovative cuisine.
The stake-out by the Retail segment has been explosive, and supermarkets, grocery stores, and online retailers have all expanded their avocado offerings to meet demand from their swelling numbers of consumers. Retailers are now stocking up to order several varieties, organic options, and pre-ripened avocados for the consumer's convenience. The Cosmetics & Personal Care industry became involved in the natural nature of avocado some time ago for use in skincare, hair treatments, and natural cosmetics, heeding the increase in consumer demand for plant-based beauty solutions. The others includes health food stores, fitness centers, meal kit delivery services, which have included avocados in their product offerings and food recommendations.
The popularity of the fruit among avocado-friendly, health-conscious millennials and Generation Z consumers on plant-based diets has boosted use across all segments. Awareness of the fruit's nutritional benefits has grown, and that has expanded to some pretty unlikely spaces, such as baby food and pet products. It is this rise of an alternative or fair trade-driven and eco-friendly offering that is reflected in continued demand for avocados that are sustainably and ethically sourced and thus forming the basis of dedicated supply chains. The advancement has also been associated with the ripening, packaging, and preservation of avocados to reduce its wastage and address environmental issues simultaneously by enhancing supply chain efficiency.
The avocado market in the United States is an extremely dynamic part of agriculture. There is a high demand for the fresh and processed avocado markets. Fresh avocados are leading the market, the United States consumes the biggest amount of this crop in the world. The U.S. reportedly imported approximately 2.6 billion pounds of avocado in the year 2022, mainly from Mexico.
This supplied over 90 percent of avocados consumed in the country. Fresh avocados are in demand, notably because of their health benefits and versatility in culinary use. For instance, In April 2022, Calavo Growers, Inc. announced plans to reorganize its business to execute Project Uno integration efforts and serve customers while improving efficiencies and cost savings.
The company is organized into two reporting segments are Grown and Prepared. The Grown segment will consist of fresh avocados, tomatoes, and papaya. The Prepared segment will comprise all other products, including fresh-cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, guacamole, and salsa sold at retail and food service, as well as avocado pulp sold to food service. Equally responding to the demand, retail outlets ranging from the supermarket to specialty store have tried carrying a wide array of fresh avocado products, including organics, which would particularly help the very health-conscious consumer. Besides fresh avocado, the market for processed avocados also grows at a rapid rate.
The main contents in this category include guacamole, avocado pulp, frozen avocado slices, and others that are in high demand by consumers in regard to convenience and shelf life extension. A rise in the demand for processed avocado products is likely to be witnessed in the future due to changes in consumer lifestyle where convenience and health have precedence. Food service industries, from restaurants to cafes, cash in on the trend by putting avocados into every possible dish, from salads to sandwiches, thus fueling demand.
The avocado market in the US is still in the growing segment, with the desire to consume healthy and versatile fruits acting as a driver to the market. The advent of the increasing online channel gives fuel to the popularity of avocados across various culinary applications. In offline transactions, convenience stores, supermarkets, and specialty food stores are the dominant distribution channels, holding the largest chunk in sales terms. These stores thus supply the increasingly rising demand for avocados due to their nutritional benefits and versatility in a number of recipes. Online channel, is becoming prominent, driven by increasing demand for e-commerce and online grocery shopping.
The online retailers like AmazonFresh, Instacart, and Thrive Market in their product offerings provide convenience of shopping online and same-day delivery to the consumers. Continued Market Segment Growths An expanding online channel coupled with increasing demand for healthy and convenient foods shows that this segment satisfies. Key market players such as Calavo Growers, Mission Produce, and Avocados From Mexico are major producers and distributors of avocados in the US, contributing to fulfilling the surging demand for avocados in different markets. Avocado demand is increasing due to their high nutritional values in healthy fats, fibers, and different vitamins and minerals. Avocados have so many uses - from guacamole and salad to smoothies and baked goods. Yet another reason that will explain the rise in demand is that more and more people embrace plant-based diets and healthy eating.
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.This product will be delivered within 2 business days.
Table of Contents
1. Executive Summary4. United States Macro Economic Indicators10. Strategic Recommendations11. Disclaimer
2. Market Structure
3. Research Methodology
5. Market Dynamics
6. United States Avocado Market Overview
7. United States Avocado Market Segmentations
8. United States Avocado Market Opportunity Assessment
9. Competitive Landscape
List of Figures
List of Tables