U.S Avocado Market - Forecast(2025 - 2031)

U.S Avocado Market Overview:

U.S Avocado Market size is estimated to reach US$7.2 billion by 2030, growing at a CAGR of 8.7% during the forecast period 2024-2030. High nutritional value and health benefits associated with Avocado fuel their demand in the U.S, as more consumers are increasing aware of healthy food choices. As America struggles with obesity, there is a growing need for healthy fats and avocados cater to this demand. Avocados are a staple for plant-based eaters boosting demand in vegan and vegetarian diets. The growth of guacamole and avocado-based dishes in mainstream American cuisine also acts as a driver. 

A major trend in the market is sustainability. Consumers are becoming increasing conscious of plastic packaging in produce. Certain produce such as avocados are individually packaged so as to avoid damage. However, this leads to an accumulation of plastic packaging. Innovations such as the use of biodegradable and resealable packaging to maintain freshness caters to eco-conscious buyers. In Q1 2024, Villita Avocados proudly debuted a new product bag for produce customers seeking a more sustainable option. The bag is 100% plastic-free, with a label made of paper film and netting composed of cellulose fiber yarn from Forest Stewardship Council-certified eucalyptus wood. Villita became the first produce company to offer this packaging in North America. Another trend in the market is the launch of new and convenient avocado products like guacamole kits, pre-sliced avocados and avocado-based snacks. This represents the U.S Avocado Industry Outlook during the forecast period.

Market Snapshot: 

U.S Avocado Market - Report Coverage:

The “U.S Avocado Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the U.S Avocado Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

The COVID-19 pandemic had a mixed impact on the U.S. avocado industry. Disruptions in the global supply chain led to challenges in importing avocados as well as fertilizers. Additionally, labor shortages arose due to border closures and travel restrictions which impacted avocado harvesting and processing. On the other hand, retail sales increased as consumers turned to home-cooked meals. 
The Russian-Ukraine war had a significant impact on the agricultural market, including the U.S avocado industry. The war disrupted the supply chains of essential inputs like fertilizer and fuel, driving up production costs for U.S avocado growers. Additionally, the conflict created uncertainty and volatility in global markets affecting the demand for avocado due to inflation

Key Takeaways

Fresh Avocados are the Largest Segment

Fresh avocados are the largest segment in the U.S market due to their versatility and widespread consumer preference for fresh produce. These avocados are a staple in households and restaurants and are used in salads, sandwiches and guacamole. According to Hass Avocado Board's (HAB) Avocado Holiday Retail recap, Q2 holidays such as Cinco de Mayo, Memorial Day, and Father's Day, generated the highest growth rates in 2024. Dollar sales velocity during Q2 holidays increased by double digits in 2024. Combined, all three holidays sold 154.6 million avocado units generating $191.6 million in sales, a $32.4 million increase in sales compared to 2023. Fresh avocados are prized for their rich flavor, creamy texture and nutritional benefits including healthy fats, vitamins and fiber. With the growing trend of clean eating and the focus on minimally processed foods, fresh avocados remain the go-to choice for health-conscious consumers. Their availability in supermarkets, farmers’ markets and online platforms makes them highly accessible to consumers.

Food & Beverage is the Largest Segment 

Food and Beverage is the largest segment in the U.S driven by the widespread usage of avocados in a variety of culinary products. The average American consumes more than eight pounds of avocados per year, roughly triple the amount in the early 2000s, according to the United States Department of Agriculture (USDA). From guacamole to salads, sandwiches and smoothies, avocados are a key ingredient in many dishes. Restaurants and fast-food chains have embraced avocados as a way to cater to health conscious consumers by incorporating them into menus for their nutritional value and versatility. The rise of avocado-based snacks and spreads in the retail market has further solidified their position in the food and beverages segment. Additionally, the popularity of plant-based diets and superfoods has made avocados a sought-after ingredient in both fresh and processed forms. 

Haas Avocado to Grow the Fastest 

Haas Avocado are expected to grow with the fastest CAGR during the forecast period in the U.S. Renowned for their creamy texture, nutty flavor and long shelf life, Hass avocados dominate both fresh and processed segments. Their versatility in various dishes from guacamole to smoothies drives the demand. Additionally, Hass avocados enjoy year-round availability on account of to domestic production and imports from Mexico and other countries. More than 2.4 billion pounds of Mexican Hass avocados were imported into the U.S. from July 2023 to June 2024, contributing to $7.5 billion in U.S. economic output, as per the Avocado Institute of Mexico’s 2023-2024 Economic Report. Marketing campaigns highlighting their health benefits and consistent quality further fuel their growth. Innovations in farming techniques and the expansion of cultivation areas have increased the supply of Hass avocados.

Rising Health & Wellness Focus Drives the Market

The increasing focus on health and wellness among U.S. consumers significantly drives the demand for Avocados. Known for their rich content of healthy monounsaturated fats, fiber, vitamins and antioxidants avocados align perfectly with modern dietary trends emphasizing whole, natural and nutrient-dense foods. As per Mission Produce, avocados contain nearly 20 vitamins and minerals, as well as monounsaturated fats which can help the body absorb nutrients like vitamin A, D, K and E. Additionally, avocados are widely recognized for their role in promoting heart health, weight management and overall well-being. As more individuals adopt healthier lifestyles, avocados remain a popular choice in meals and snacks.

Reliance on Imports to Hamper Growth

In the U.S, avocados are grown in California, Hawaii and Florida. But these three states cannot meet the high demand. As a result, the U.S exports avocados. The USDA reports that about 90% of all avocados eaten in the U.S. come from Mexico, totaling an estimated $2.7 billion in imports for 2024. According to the New York Times, Mexico’s avocado exports were worth just over $3 billion in 2023, with about 80% of sales going to the United States. From 2014 to 2023, production of the crop increased by about 75%, with avocados becoming Mexico’s fourth most valuable agricultural export behind beer, tequila and berries. This heavy reliance on imports could prove to be a challenge in case of trade wars, border closures or any other geopolitical conflict.
 
Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the U.S Avocado Market. The top 10 companies in the U.S Avocado Market are:
1. Calavo Growers Inc.
2. Mission Produce 
3. Fresh Del Monte Produce Inc
4. Villita Avocados
5. Westfalia Fruit Americas
6. Flagship Food Group, LLC
7. Henry Avocado Corporation
8. West Pak Avocado Inc.
9. Del Rey Avocado
10. Sabra Dipping Company, LLC

Scope of Report: