As avocado demand increases so do imports—from 2014 to 2016, imports grew 32 percent.
According to the Food and Agricultural Organization of the United Nations (FAO), the top importer of avocados was no surprise: the United States, representing the 41 percent of global imports (in metric tons) valued at $1.8 billion in 2016, with an increase in volume from 2014 to 2016 of 21 percent.
Another significant importer is the Netherlands, the port of entry to Europe, representing 14 percent of total global imports (in metric tons), with a major surge from 2015 to 2016 of 33 percent. Canada is the third top importer, representing 6 percent, valued at $260 million with a climb of 24 percent from 2015 to 2016.
Other countries that are not major importers are still high-potential markets, like China, which imports avocados and other fruit from Chile and Peru. Mexican avocados have been allowed to enter China since 2012, and shipments have increased in volume in recent years.
The Chinese harvest a more tropical version of avocados themselves, which are like those grown in the Dominican Republic or Brazil, but they are less flavorful than Hass avocados.
Another trend generating demand in China is the Kentucky Fried Chicken or KFC chain, which introduced avocados as part of a new healthy menu. Launched with a massive marketing campaign, avocado was added to sandwiches, wraps, and combos, which are especially popular with young urban consumers.
Tastings in Chinese supermarkets and social media promotions were also adapted to cultural norms, with avocados as food substitutes or added to rice, spicy soups, and pizza. Chinese consumers also received educational marketing materials on how to choose ripe avocados, with new processing plants opening in China to create and sell ready-to-eat avocado products.
Imports are expected to double for 2018 and to continue growing in the urban upper-middle class in cities like Shanghai, Beijing, and Guangzhou—which has raised concerns that the impact of such demand might affect the U.S. market in the future. China’s size and substantial market could put a strain on avocado supply, pushing up prices.
Another Asian importer, Japan, has also increased its avocado imports, up 29 percent from 2014 to 2016, but this only represents 4 percent of total imports, a small market compared to China.
This is an excerpt from the most recent Produce Blueprints quarterly journal. Click here to read the full article.
