Mexico Avocado Market Overview, 2029

Avocados are part of a long Mexican heritage dating all the way back thousands of years to the Aztecs and Maya, who highly valued the fruit for both its flavor and rich nutritious content. Due to great health potential, avocados were used by indigenous people in many traditional concoctions, which recognized their valuable qualities. This tradition of growing and relishing avocados was carried through into colonial times, when the fruit gained importance in Mexican cuisine. In the late 19th and early 20th centuries, with the increasing world trade, Mexico started to register itself as a main producer of avocados, which led to cooking the groundwork of the present scenario where Mexico leads the world in the production and export. The avocado industry in Mexico is a very structured one, and the clear organization avails the share of this leading position in the world markets. The key areas of production registered by the avocados come from the high-profile state of Michoacán, where the growth conditions are ideal. The industry is multifaceted and varies from small-scale farmers to agribusiness major players, making the composition of the high output in the nation. The factories for processing the huge amounts of avocados are ideally located across the country for effectiveness and efficiency in quality control and packaging. Export logistics are well established with solid infrastructure for cold storage and transportation, thus helping to maintain the freshness and quality of fruit during international transport. The Mexican government has been in the forefront in the creation of the avocado industry, from policies to sustainability and economic development. One of the significant policies is encouragements for sustainable agricultural practices through the National Institute of Forestry, Agriculture, and Livestock Research, which provides for the research and advisement on the environmental impacts. The government has put in place regulations to help reduce the effects of deforestation and regulate the use of water at an optimal level to address the major environmental concerns about the industry. Where a significant number of successes lie with regard to the development of certification programs that meet the international standards of sustainability Rainforest Alliance, Fair Trade certifications the associations of producers with those schemes are crucial to enable a wider access to international markets. Key events that have shaped the sector are the recent expansions of trade agreements, like the USMCA, which have put Mexico into a position with enhanced export and access to markets. The industry-initiated conferences and workshops on sustainable agriculture have set the stage for the necessary open dialogue and innovation that has been key in advancing and establishing environmentally responsible avocado farming. Avocado farming plays a crucial role in the Mexican economy, accruing a large proportion of national income and employment.

According to the research report "Mexico Avocado Market Overview, 2029," published by Bonafide Research, the Mexico Avocado Market is anticipated to add to more than USD 1000 Million by 2024–29.The economic benefits consist of revenues in communities, mainly in the rural areas where the avocado activity is one of the most important among the carried-out activities by the population. The export revenues concerning the avocados are playing a determinant role in Mexico's trade balance, which really shows the fruit's importance, not only as a staple food in that country but also as an important economic resource. It has provided employment opportunities running into millions from cultivation to processing, logistics, and marketing. In Mexico, avocados represent something more than one of the consumed fruits; they are a cultural emblem that penetrates the fabric of the national kitchen. It's exaggerated demand due to a growing focus on health and wellbeing, as consumers are most enticed by the nutritional values of avocados. From traditional recipes like guacamole to innovative, contemporary concepts, there is room for an avocado. Such continuous popularity and versatility for this fruit have made it one of the basic ingredients in any Mexican home, thereby rendering continuous demand. Environmental sustainability and security challenges to avocado production and exportation activities are major challenges facing the Mexican avocado sector. Long-term success requires addressing deforestation and water management challenges. Security concerns in avocado producing regions are a threat to the industry. On the other hand, challenges present an opportunity to explore new markets and focus on sustainable production. The future for growth and expansion lies in innovative avocado products and in driving new technologies in farming that will help overcome current obstacles.

The avocado market in Mexico is well established, very diversified, and has a long history of a large number of varieties both for domestic consumption and export. Mexico is the largest producer and exporter of avocados in the world, with the Hass variety dominating the market. Known for their creamy texture and rich, nutty flavor, Hass avocados are incredibly versatile in the kitchen. They find application in many traditional Mexican dishes, such as guacamole, tacos, and tortas. The state of Michoacán is the primary growing region for Hass avocados. These fruits grow-up in complete perfection due to the ideal climate and soil characteristics of this region. Their consistent supply and quality in eating have made them a staple in Mexican households, as well as a priority export commodity. Other avocado varieties are grown and consumed in Mexico alongside Hass to help establish the rich avocado culture. Criollo avocados are native to this country and have a big seed with thin, smooth skin that remains green upon maturity. They have mild, creamy flavor and a slightly fibrous texture. This makes them ideal for regional cuisines and other traditional dishes like chiles rellenos and enchiladas. Bacon avocados bear smooth, thin skin and have a mild, creamy flavor. They are usually in season from late fall to early spring and used primarily in salads and sandwiches. Fuerte Avocados—once a dominant commercial variety—are typified by their smooth, thin skin, pear-like shape, mild and very creamy flavor, slightly fibrous texture, and late fall to early spring season; they still maintain a strong following among consumers who appreciate such unique characteristics. Other types grown and consumed in Mexico include Pinkerton, Zutano, and Reed; all of these have some special characteristics. Some features of the Pinkerton avocado include being more elongated, with a rich, nutty flavor. Zutano avocados shine with their bright green, shiny skin, very light flavor, and slightly fibrous texture. The Reed avocado is much bigger, with smoother and thicker skin that remains green in color when ripe. Traditions play an enormous role in the Mexican avocado market because avocados are part of the staple Mexican diet in many dishes. Classic avocado dips like guacamole, avocado soup a creamy soup made with avocados and chicken broth, stuffed avocados avocado halves filled with a mixture of shrimp, crab, or tuna salad, avocado and orange salad a refreshing salad course made with sliced avocados and orange segments, and for dessert, avocado ice cream made with avocados, milk, cream, and sugar.

The landscape of the end-user in the Mexican avocado market, which is positioned as the largest producer and consumer globally, is diverse and well established, supporting market revenues from food and beverages, retail, cosmetics and personal care, among others. Guacamole is consumed very much within Mexican cuisine, appearing repeatedly from tacos, tortas, and, in every restaurant, from street food to the classy ones, heavy use of avocados incorporated in the menu network. For example, in Mexico City, La Bikina offers a wide selection of avocado-based plates, from stuffed avocados with shrimp or chicken to avocado on the grill. The retail distribution spread is quite wide, and avocado is present in almost all presentations within supermarkets, local markets, and convenience stores. For example, Soriana and Chdedraui have several types of avocados with different ripening conditions to fulfill the demand of consumers. The use of avocados has extended to the cosmetics and personal care industry, with the fruit being used in face masks and for hair care. Mexican companies, including Natura Mexicana and Xochicalli, offer entire avocado-based skincare lines to take advantage of the fruit's natural moisturizing properties. Avocados appear on the list of these others used in the weirdest ways. Health food stores such as The Green Corner contain supplements or even protein powders that are avocado-based. Plant-based meal service under Heartbest Foods incorporates avocados in their menus. Innovative products, such as avocado oil for cooking, and avocado products, mostly for health foods, have registered a rise in demand. Mexico also offers, specifically, one of the main producers and consumers, hosting an array of interventions related to avocados. An example is the Avocado Pack in Michoacán, a program focusing on innovative ripening and packaging technologies for avocados. The industry in this country has also developed in terms of home farming. A great deal of companies, like Apatzingán, has adopted water-saving irrigation. Being the birthplace of avocados, Mexico is still leading with product innovations, such as avocado-based ice cream from La Michoacana and avocado leaf tea. Maturity of the market has led to products that add value, such as pre-prepared guacamole, for example, Wholly Guacamole, as a response to the urban areas with increased demands, including those on convenience.

Mexico is the largest producer and exporter of avocados in the world, and therefore, it is an active avocado market split into fresh and processed segments. Fresh avocados remain at the core of the avocado industry in Mexico, generally dominated by Michoacán. Characterized by a creamy, rich flavor, the Mexican avocado plays a role in indigenous cuisine in such dishes as guacamole, tacos, and salsas. Avocados are also among those critical exports from this country destined for the U.S. Events like the Super Bowl push demand to a peak and, therefore, large revenues for Mexican farmers. Apart from fresh avocado exports, Mexico also hosts a growing processed avocado segment. Value-added products include guacamole, avocado oil, and frozen avocado slices, targeted at the domestic and foreign markets. In this regard, companies such as Avomex process and export guacamole in several presentations, taking advantage of its diffusion on the international market as a typical appetizer. Avocado oil, prepared by companies like La Huerta, has a large market due to its health properties and multiple uses in cooking and cosmetics. Companies like Mission Produce, which sells frozen avocado products, make avocados convenient and long-shelf-life, hence available for ready-to-eat meal and smoothie applications. In addition, it is supported by an appropriate climate, as well as developed intensive technologies of agriculture that provide quality and annual production volumes for the avocado market in Mexico. The growth in global trends on health, as well as the popularity of Mexican cuisine, has increased the demand for avocados. Processing and packaging innovations make more processed avocado products appealing, as they are able to answer diversified consumer needs.



Avocado distribution in Mexico is quite a complex process with channels either online or offline. The biggest sale of avocados in Mexico occurs through the offline channel, through traditional markets, tianguis, and street vendors. Most of these channels are common in rural areas where access to online platforms is low. Supermarkets and grocery stores are an important offline distribution channel in large cities, with large retail chains like Walmart and Soriana offering an extensive selection of avocado products. Online distribution channels are gaining increasing popularity in Mexico, especially among the young and more tech-savvy consumer who prefers convenience through online shopping. There are e-commerce platforms, such as Amazon Mexico, Mercado Libre, and Walmart's online platform, which offer a wide array of avocado products from fresh avocados to guacamole and avocado oil. Online distribution channels are quite popular in urban areas where consumers have reliable access to the internet and tend to shop online. Besides this, online platforms gave consumers the convenience of home delivery, which is a big incentive in Mexico's congested cities.



Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Avocado market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Hass
• Reed
• Fuerte
• Others

By End User
• Food & Beverages
• Retail
• Cosmetics & Personal Care
• Others

By Form
• Fresh
• Processed

By Distribution
• Online
• Offline

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Avocado industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.
Keywords:
Avocado, Hass, Reed, Fuerte, Food & Beverages, Retail, Cosmetics & Personal Care, Fresh, Processed, Online, Offline