Mexico is expecting the largest avocado crop in the past five years. "This year's large crop size is a function of a number of things with a favorable climate playing a big role," says Pedro Somarriba, President of Avoworks – a grower, packer, importer and distributor of avocados from Mexico. The Michoacán region, responsible for supplying 80+ percent of all avocados consumed in the U.S., is blessed with mountains that tend to bring good rainfall. This, coupled with the warm days and cool nights from the high elevations and the rich soils from volcanic activity, make Michoacán a unique place to grow avocados.
As a result of favorable supply, prices have been lower compared to last season, but they are very stable. "Price stability is a big benefit as it allows retailers to set up promotions." Without stable prices, promotions are much more challenging as there is always a risk prices will go up. Currently, there's a big influx of fruit into the U.S., but as a result of aggressive promotions and strong demand, avocados are moving fast and inventories aren't building up.
© Avoworks
Health and demographics drive demand
Strong demand isn't just caused by favorable pricing. "I believe the focus on health is a key driver," Somarriba shared. Even the Department of Health and Human Services has come up with a new food pyramid, placing avocados at the center as they are a great source of healthy fats that are very important for heart health. The impact of GLP medications is also significant. People are walking away from larger portions and purposely choose what they would like to eat. "As a result, they are increasingly shopping the perimeter of the store, including refrigerated items as well as fruits and vegetables."
The second key driver of demand is the Hispanic population. Hispanics consume about 70 percent more avocados than the rest of the U.S. population and are very much driving the growth. Where Hispanics used to be largely based West of the Mississippi, a share of the population has migrated to the Southeast, which has now become the fastest growing region for avocados in the country.
The third most important driver of demand are younger consumers, both Gen Z and Millennials. They are in love with avocados and can't get enough of them. These demographic groups incorporate avocados in many meals and are the driving force behind avocado toast, expected to continue driving a significant part of the growth in consumption.
© The Nutrition Source
Food pyramid with avocados at the center.
Increased import volume
"Demand is currently so strong that import volumes aren't too far off from volumes brought in in the weeks leading up to Super Bowl, the largest consumption event for avocados in the U.S. In 2025, avocado imports amounted to 297.3 million pounds during the first three months of the year. Between January and March of this year, that number increased to 396.9 million pounds. "This increase of 33 percent shows how strong movement currently is," said Somarriba.
Michoacán used to be the only state in Mexico allowed to export avocados to the U.S. However, in July 2022, exports opened up for the state of Jalisco. While Jalisco's production has been showing steady growth, its volume represents about 15 percent of Michoacán's volume. Avoworks' packing houses are all located in Michoacán, but one of the company's grower partners also owns orchards in the state of Mexico. While this state is not yet authorized by the USDA to export to the U.S., the expectations are for approvals to be coming. All in all, the state of Mexico probably represents 10 percent of Michoacán's avocado volume.
© Avoworks
Proximity is biggest blessing
Mexico has been exporting avocados to the U.S. for about 30 years and the country's proximity to the U.S. is their biggest blessing. "In less than 48 hours fruit is cut, shipped, and delivered at the U.S. border, which is extraordinary." Fruit from South America on the other hand spends at least a week on a vessel and the cost of ocean freight has increased by about 50 percent in recent weeks, having a significant impact. "Mexico is blessed having all the right elements to grow the best fruit in the world in an incredibly close proximity to the largest market in the world."
Canada also sources avocados from Mexico and Avoworks is looking into shipping more into Canada. Generally, import requirements are less stringent as there is no domestic industry to protect. Contrary to the U.S., fruit from the state of Mexico is allowed to enter Canada, in addition to Michoacán and Jalisco. Outside North America, avocado consumption in markets like Europe and Asia is growing rapidly, offering opportunities for Avoworks. "In terms of avocado consumption, Europe is probably where the U.S. was five years ago and Asia is closer to 20 years behind. We are very optimistic about growth opportunities in these markets and looking to establish solid and long-term relationships on these continents, Somarriba finished."
From April 16 – 18, Pedro Somarriba and the Avoworks sales team will be present at Viva Fresh Expo in San Antonio, TX. Contact him if you would like to meet up.
© Avoworks
For more information:
Pedro Somarriba
Avoworks
[email protected]
www.avoworks.com
