In the last decade, the avocado has proven to be a safe investment. The incessant growth of the avocado industry in the markets and the stability of avocado prices, which after 2010 continued to increase despite the entry of new players into production and the ever-increasing volumes of fruit produced worldwide, have allowed this industry to successfully overcome the most adverse economic conditions, including the stock market crash in 2008. But how much more can it keep growing?
According to an analysis from Colin Fain, from Agronometrics, the avocado industry has designed and achieved this level of growth through close coordination between the different parts of the supply chain. The industry has worked hard so that consumers receive quality fruit, especially with the investments it's made in the ripening centers at their destination. In addition, the avocado industry has a strong commitment to marketing that has allowed it to continuously expand the market.
According to Fain, the avocado is one of the few categories in which market share is not seen as a zero-sum game, but rather as a collaborative effort to attract more people to consume a delicious and nutritious product.
He also stated that the avocado industry can be optimistic as its figures and information available show they still have room to grow. Based on its track record, he said, one can say it is a healthy industry that is ready to take on this challenge.
Avocados in the Stock Market
In early September, California company Mission Produce made headlines after announcing that they would apply for an Initial Public Offering (IPO). This isn't the first company in the avocado industry to be listed on the Stock Exchange, as Calavo Growers was the first in 2002.
Up until September 11, 2020, Calavo Growers has experienced an increase of 821% in value. The value of the company fell considerably in April of this year, along with the rest of the Stock Market, however, avocado sales have not slowed down, offering a very optimistic outlook for the company.