The avocado is a large berry with a single seed inside. Avocados are mostly cultivated in Mediterranean or tropical climates. Avocados may be spherical, pear-shaped, or egg-shaped and their colors may vary depending on the variety. Its buttery flesh is mostly consumed raw and can be served on toast, baguettes, sandwiches. Avocados can also be used as the base for soup or guacamole, the popular Mexican dip.

 

Mexico dominates the world production of avocado with more than a third of the global production. Dominican Republic, Indonesia, Colombia, and Peru are among the major producers. California is the main avocado producer in the U.S, accounting for more than 90% of the production, Florida comes second. Within California, the counties of San Diego and Ventura stand out and concentrate most of the production.

 

This market report includes growers, avocado packers and handlers, equipment suppliers and major retailers.

 

Demand for avocados has been growing fast in the U.S, restaurants have embraced the trend, especially fast casual ones. In local restaurants, avocados have become a common staple as an add-on. For breakfast, in wraps or healthy sandwiches, avocados are increasingly found in various dishes. 

 

While foodservice demand for avocados fell sharply in 2020 due to the covid-19 pandemic, increase in demand from retail helped to offset the drop. With the gradual reopening of the economy in 2021 demand bounced back as restrictions loosened.

 

On the retail side, the bagged category has been on the rise for a few years and sales increased sharply since the covid-19 outbreak. In 2020 alone, bags accounted for 20% of category sales. Organic avocadosrepresented 6% of dollar sales in 2020 and outpaced the total category growth by a wide margin. The California region experienced incredible growth with organic dollar sales up 50% compared to the previous year.