A Look Inside the Fruitful Avocado Trade

By Dr. Gary Williams and Dan Hanselka

We spread it on breakfast toast, dice it in freshly tossed salads, blend it in smoothies and dip into it with game-day guacamoles. Avocados have become a key ingredient in our daily lives, serving as a delicious part of our meals and commitment to healthy living. It’s no wonder we can’t get enough of the fruit here in the U.S. — and why it’s become one of the most critical U.S. imports from Mexico.

The ongoing avocado trade drives economic gains for both countries, fueling everything from job security to financial output. To put this massive impact into perspective, the U.S. economic output from avocado imports has skyrocketed by 340% in little more than a decade.

The 2023-2024 Mexican Avocado Industry Economic Impact Report dives into just how powerful this beloved fruit can be. In the last fiscal year alone, avocados have contributed to $7.5 billion in U.S. economic output, $4.2 billion in U.S. GDP, $2.5 billion in U.S. labor income from more than 42,000 U.S. jobs for American workers and $1.1 billion in U.S. taxes.

The statistics speak to a larger, mutually beneficial relationship that spotlights the importance of strong trade ties. They also illustrate the love for avocados that has been cultivated in the U.S. in the decade since Avocados From Mexico was created for exactly that purpose: driving demand for avocados in the U.S.

In fact, as avocados continue to become a grocery staple, with a U.S. household penetration of about 70%, collaborative efforts between organizations like Avocados From Mexico, Mexican Hass Avocado Importers Association (MHAIA) and the Association of Avocado Exporting Producers and Packers of Mexico (APEAM) have proven to be incredibly successful at boosting trade.

Sales have continued to shatter records, multiplying the market and generating new levels of demand faster than ever before. Especially in the country’s largest avocado-consuming states, California and Texas — which accounted for roughly 20% of the total U.S. economic output in the past year with $965.2 million and $468.7 million, respectively.

And with our love for avocados only growing in the U.S., Mexico is the only place that can keep up with that demand. As the only country that can produce the large amount of fruit that the U.S. market demands year-round, Mexico plays a key role in ensuring the positive trade benefits aren’t limited to certain months or seasons.

Mexico has greatly benefited from the trade, as well. The country’s agricultural center, Michoacán, has experienced a range of economic benefits. With more than 35,000 growers and 54,000 avocado orchards in Mexico — predominantly small, family-run businesses of just 3 acres per farm — and more than 90 packing houses, a total of 2.4 billion pounds of Hass avocados were exported to the U.S. last year.

The U.S. economic output from avocado imports has skyrocketed by 340% in little more than a decade.

According to Fresh Source: Economic Report by economist Manuel Molano, these efforts generated $6 billion in economic output in Mexico, including a higher GDP and the creation of more than 78,000 steady jobs in both the growing fields and packing houses.

Thanks to avocados, farmers can provide better lives for themselves and their families, invest in their local communities, and develop sustainability initiatives that improve the quality of the growing environment.

When the APEAM and the MHAIA first united to fund Avocados From Mexico in 2013 — collectively representing farmers, packers and importers — it marked the first time in history two international organizations of this kind came together in the name of increasing demand. This innovative approach offers avocados strong protection and support, unique within the produce industry. Avocados From Mexico acts as the heart of this important work, connecting other groups that also promote Mexican avocados in the U.S., from sales to marketing.

As a result of these collaborative partnerships, avocados are growing in their cultural relevance. Not only has consumer awareness of the health benefits of avocados increased, along with trends that favor healthy foods, the growing Hispanic population and influence of Hispanic cuisine are major factors driving the growth of avocados in the U.S.

Marketing efforts aimed at Millennials and Gen Z have also put avocados at the center of larger cultural moments including the Super Bowl, where in the weeks leading up to the event, trucks full of avocados leave for the border every six to 13 minutes, according to the Association of Avocado Exporting Producers and Packers of Mexico.

With most Americans (77%) preferring fresh avocados over processed, menu penetration has also increased along with the emergence of crossover recipes.

With demand in the U.S. on the rise, supply from Mexico remaining strong and both countries working together, avocados will be inspiring increased jobs, economic output and financial growth for years to come.

Dr. Gary Williams is professor of agricultural economics and co-director of the Agribusiness, Food, and Consumer Economics Research Center (AFCERC), College Station, TX. He is the chief operations officer responsible for managing the research program and leads AFCERC research and outreach projects relating to commodity and agribusiness markets and policy and international trade and policy. He is also senior scientist, Norman Borlaug Institute for International Agriculture.

Dan Hanselka is an Extension program specialist at Texas A&M AgriLife Extension Service.