Reinvigorating the Retail Avocado Category

More supply, sourced from multiple growing regions, can lead to lower prices and higher sales.

Sometimes, one and one is way more than two. Take avocados, for example. In the early 1990s, most of the supply to U.S. supermarkets originated from California, with marketing support from the California Avocado Commission (CAC).

Per capita consumption in 1996 totaled 1.51 pounds, according to U.S. Department of Agriculture (USDA) Economic Research Service (ERS) data. The following year, Mexico received a green light, following a nearly century-long phytosanitary-driven ban, to export fruit to 19 Northeast and Midwest U.S. states from November through February. By 2007, Mexican avocados were shipped to all 50 states.

Today, supply is primarily sourced from five countries, as well as California in the U.S., with marketing support from the CAC and organizations representing Mexican, Peruvian and Colombian avocados. This resulted in a U.S. per capita consumption of 8.6 pounds in 2024, a 470% increase.

Despite this dynamic three-decade trajectory, the avocado category has remained static over the last five to six years, as volumes sold into the U.S. have been relatively flat, according to Xavier Equihua, president and chief executive officer of the Peruvian Avocado Commission (PAC), headquartered in Washington, D.C.

“Collectively, associations spend around $80 to $100 million in marketing,” says Equihua. “Yet, what we need is more supply. We have yet to hit the 3 billion mark. The U.S. imported 2.8 billion pounds of fruit in 2022 and 2.9 billion pounds in 2024. We should be at 3.5 billion pounds by now to keep up with demand.”

SOURCE A GLOBAL SUPPLY

Equihua says more supply, sourced from multiple growing regions, could lead to lower prices and higher sales. “We view the U.S. market as having the greatest potential for this, driven by the trend of people seeking to eat more healthfully, particularly younger individuals.”

Supply diversification, combined with continually creative marketing support, equals the answer to reinvigorating the avocado category.

There is a trend for retailers to diversify their portfolios of avocado-sourcing regions.

“We source our avocados almost exclusively from Mexico and California,” says Jeff Salchenberg, produce program and category manager at New Seasons Market, a 21-store chain based in Portland, OR. “We will see Chilean avocados occasionally in late winter if there is a gap between Mexican and Californian crops, but, for the most part, Mexico and California can supply us with all that we need.”

“A key part of our diversified sourcing strategy is to be able to source from two or more origins at any given time throughout the year,” says Keith Barnard, senior vice president of global sourcing for the Oxnard, CA-headquartered Mission Produce. “This enables us to fill in supply gaps and strategically mitigate supply chain challenges.”

For the U.S., Mission’s primary origins include Mexico, Peru, California and Colombia, but it also sources from Chile, the Dominican Republic, and New Zealand to complement supply sources, Barnard says.

Mexico is the No. 1 avocado supplier to the U.S., with 2.3 billion pounds of fruit exported in 2024. This represents nearly 80% of avocados sold in the U.S., based on data provided by the Hass Avocado Board (HAB), in Mission Viejo, CA.

“In Mexico, more growing regions outside of Michoacan are working toward getting approval on protocols to export their avocados to the U.S.,” says Allan Acosta, vice president of global sourcing for Robinson Fresh, in Eden Prairie, MN.

California ranks second, providing 11.8% of the avocados sold in the U.S. in 2024, according to HAB data.

“U.S. avocado volumes will increase over the next five years, and California will play a big part in this,” says Peter Shore, vice president of product management for Calavo Growers, in Santa Paula, CA. “New orchards have been planted in Ventura, Santa Barbara and San Luis Obispo counties.”

U.S. avocado volumes will increase over the next five years, and California will play a big part in this.

— Peter Shore, Calavo Growers, Santa Paula, CA

Peru is expected to export more than 200 million pounds of avocados to the U.S. between May and September 2025, up from 145 million pounds in 2024.

Exports of avocados from Colombia reached 76 million pounds in 2024.

“Several production zones in Colombia continue to be developed to extend year-round availability and close supply gaps in the U.S. market,” says Manuel Michel, managing director of the Colombia Avocado Board (CAB), with offices in Orlando, FL. “These regions are expected to commence commercial exports to the U.S. by 2026–2027, pending phytosanitary certification and achieving a sufficient production scale. This expansion is part of Colombia’s broader vision to become a reliable, year-round avocado supplier.”

The Dominican Republic and Chile each sent some 13 million avocados to the U.S. in 2024.

“The Dominican Republic has newer plantings of Hass avocados, with harvest from March to September, and they are developing their infrastructure,” says Ozzie Figueroa, marketing and consumer service director for Henry Avocado Corporation, in Escondido, CA. “This fruit reaches the East Coast in seven to eight days post-harvest.”

Guatemala is expected to have access to the U.S. market within the coming year. In April, Mission Produce opened a state-of-the-art packinghouse in the country. “With two crops annually, November to March and a smaller crop from June to July, Guatemala bridges supply gaps during key periods throughout the year,” says Barnard.

Ecuador has a work plan negotiated with the USDA and is awaiting final inspections, according to Giovanni Cavaletto, chief executive officer for the U.S. at GLC Cerritos, in Oxnard, CA. “Ecuador’s start is further out than Guatemala’s, and with fewer acres developed. The goal with Guatemala and Ecuador is to increase volume, which traditional sources have not done in recent years.”

YEAR-ROUND MARKETING SUPPORT

Consumer demand for avocados in the U.S. is expected to continue rising. To meet this demand, “avocado suppliers must prioritize delivering excellent quality, since the eating experience is a key factor for shoppers,” says Gary Caloroso, regional business development director for the Giumarra Companies, headquartered in Los Angeles, CA.

Avocado suppliers must prioritize delivering excellent quality, since the eating experience is a key factor for shoppers.

— Gary Caloroso, Giumarra Companies, Los Angeles, CA

“Equally important is offering variety at retail to drive incremental sales. This includes options across various ripeness levels, sizes, packaging formats (such as bagged or bulk), and both conventional and organic selections,” adds Caloroso. “Retailers who invest in effective promotions and eye-catching merchandising strategies are more likely to see stronger sales and increased profitability.”

Retailers can find promotional assistance from growers and shippers. For example, Mission Produce’s in-house marketplace intelligence, AvoIntel, delivers consumer insights to inform of profitable programming opportunities, according to Brooke Becker, senior vice president of sales. “With AvoIntel, we’ve been able to help our customers drive double-digit sales growth.”

Colombia, California in the U.S., Peru, and Mexico all have country-of-origin marketing organizations.

This spring, the Colombian Avocado Board conducted a multi-week promotion with Weis Markets, a chain of over 200 stores headquartered in Sunbury, PA. The campaign, which ran from March 27 to April 23, included a display contest, point-of-sale tools, and in-store engagement chainwide with the Avocados from Colombia brand. The timing aligned with key spring holidays, including Easter, Earth Day and Cinco de Mayo, and marked the start of the Traviesa season, one of Colombia’s two harvest seasons that support year-round availability.

“Partnering with the Colombia Avocado Board on the recent display contest was a game-changer for us,” says Mathew Forbes, Weis Markets’ avocado buyer. “The promotional support and striking in-store materials generated incredible engagement, and we saw a significant sales increase during the campaign. We’re excited to keep building on this momentum with future collaborations.”

The CAB will unveil its new national marketing campaign in October at the IFPA Global Produce and Floral Show.

The CAC, based in Irvine, CA, provides ongoing support to its retail partners by coordinating in-store promotions, providing point-of-sale materials and signage, and conducting digital marketing campaigns to maximize sales and consumer engagement in their stores, according to Terry Splane, the CAC’s vice president of marketing. “With the increased size of the 2025 harvest, we are focused on initiatives that leverage consumer demand for California avocados and feature messaging around consumer priorities, such as sustainability, local growing and ethical sourcing.”

Avocados From Peru, the national brand of the PAC, opened its 2025 U.S. season in May with a major league splash: a high-impact partnership with the Detroit Tigers that serves as the cornerstone of the brand’s national marketing efforts.

“Sports inspire people to stay active and live well, values that Avocados From Peru champions in every campaign,” says Equihua. “No other origin does what we do to integrate avocados with cultural, lifestyle and wellness-driven experiences.”

The 2025 signature partnership with the Detroit Tigers, in collaboration with Meijer, a 500-plus store chain based in Grand Rapids, MI, and Chevrolet, includes in-stadium promotions, retail displays, digital content, and summer grilling campaigns. The centerpiece is a sweepstakes for an “Avo Tigers” Chevy Silverado pickup truck, with the grand prize winner to be announced Sept. 21 on Fan Appreciation Day at Comerica Park.

Complementing its event series, PAC offers a range of customized retail programs. Initiatives include a national e-coupon and rebate program, social media competitions, in-store activations, display and sales contests, recipe-driven digital content, and a national mesh bag program.

Avocados From Mexico (AFM), based in Irving, TX, will continue to focus its promotions on football, starting with college football in September and extending through the Super Bowl in February. This time frame aligns with the country’s leadership position in avocado supply to the U.S.

“There are some 1,900 football viewing occasions from the start of college football to the Super Bowl,” says Stephanie Bazan, AFM’s senior vice president, communications strategy and execution. “From October through December 2024, retail equivalized sales volume was up 10% compared to the year before and was the biggest since the pandemic, up +29% compared to 2022.”

Bazan says AFM will again have a robust fall promotional campaign with an omnichannel approach that includes everything from a media presence to in-store elements and a new consumer offer designed to drive traffic to the stores and get more units in the basket.

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The Organic Avocado Promotional Predicament

Sales trends show that organic Hass avocados are gaining a stronger foothold in the U.S. market.

From 2014 to 2024, the organic segment’s share of total avocado volume grew from under 5% to over 7.5%, reflecting a 65% increase in share over the decade, according to data supplied by the Hass Avocado Board (HAB), based in Mission Viejo, CA.

“Though conventional avocados still represent most of the volume, the upward trend in organic share suggests a continued shift that may influence future production and import patterns,” says Emiliano Escobedo, HAB executive director.

A large, 40-plus-ct SKU is the primary avocado offering at New Seasons Market, a 21-store chain based in Portland, OR. “We also have 70-count and six-count bags throughout the year. All three are organic,” says Jeff Salchenberg, produce program and category manager.

Organic avocado shoppers spend 142% more on avocados annually than conventional-only shoppers, according to Numerator Insights’ Advance Shoppers Profile report for the 12 months ending April 30, 2025, as shared by Mission Produce, in Oxnard, CA.

“Catering to this demographic is important for a successful and profitable avocado category,” says Brooke Becker, Mission’s senior vice president of sales.

EXEMPT FROM ASSESSMENT

However, an exemption from assessments imposed by the National Organic Program (NOP) on domestic producers, handlers and importers of organic products is the reason why none of the associations operating under the federal promotion program for Hass avocados engage in promotions to support the marketing of organic avocados, according to Xavier Equihua, president and chief executive of the Washington, DC-based Peruvian Avocado Commission.

In the early 2000s, as part of the NOP’s development, an amendment was incorporated into the farm bill to provide organic producers with a break, due to what was then considered a small subsegment of the agricultural industry, Equihua explains.

“However, the situation has changed dramatically, as the organic industry has grown and now has a substantial market presence.”

Equihua was one of the staffers who drafted and coordinated the legislation that established the framework for organic food production and labeling, the NOP, during his tenure as an adviser to the chairman of the House Agriculture Committee.

“To foster the growth of organic avocado sales from all origins, we must either request that importers refrain from seeking refunds for the assessments paid to the federal promotion program for Hass avocados or collaborate to repeal the provision in the law that exempts producers, handlers, and importers from paying assessments,” says Equihua.

“It is unfortunate that all products operating under a federal promotion program are unable to engage in promotions for organic products because of this limitation. As you can imagine, it would be unfair for conventional avocados to subsidize producers, handlers, and importers of organic avocados.”

Equihua adds this has been a concern for the Peruvian Avocado Commission for several years, “particularly since others have made numerous efforts to establish a generic federal promotion program for organic products. Consequently, it would be illogical for our category to allow others to promote organic avocados when our category possesses the expertise and knowledge necessary to promote avocados effectively.

‘I sincerely hope that we can collaborate with Peruvian avocado producers and importers in 2026 to establish the inaugural marketing program dedicated to the promotion of organic avocados within the U.S.”

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Hass Rules, Yet It’s Not the Only Variety

Avocados are one of the few categories in the produce department dominated by a single variety, Hass, which is long favored for its flavor, familiarity, quality and shelf life.

“Hass has been hard to beat,” says Giovanni Cavaletto, chief executive officer USA, for GLC Cerritos, in Oxnard, CA. “It is important to remember that in the ’60s and ’70s, Hass rose to prominence, beating out scores of other varieties not once, but twice. Once in California and completely independently, it came to dominate the Mexican domestic market.”  

In California, shoppers also enjoy specialty varieties, such as Bacon, Fuerte, Pinkerton, Reed and Zutano, according to Gary Caloroso, regional business development director at the Giumarra Companies, headquartered in Los Angeles, CA.

“Additionally, Hass-like varieties, such as GEM and Lamb, have delivered strong sales performance for retailers.”

While these varieties are currently produced on a small scale, they offer unique flavor profiles, seasonal benefits, and potential niche appeal, according to Terry Splane, vice president of marketing for the California Avocado Commission, Irvine, CA. “For instance, GEM avocados are known for their excellent eating quality and slightly later harvest window, while Reed avocados offer a rounder shape and buttery texture, ideal for summer merchandising.”

GEM, Bacon, and Fuerte are avocado varieties that Jeff Salchenberg, produce program and category manager at New Seasons Market, a 21-store chain based in Portland, OR, stocks in addition to Hass when available in the summer “Our Washington stores will offer the Hawaiian Sharwil variety when in season in the fall.”

On the East Coast, Brooks Tropicals sources tropical green-skin avocados year-round from Florida and the Dominican Republic. The produce wholesaler in Homestead, FL, branded these as the SlimCado, since the variety naturally has a lower fat and calorie content than the Hass variety. These fruits are popular with customers of Caribbean heritage living on the U.S. East Coast.

There’s no indication that these niche avocado varieties are taking hold in import markets.

“There’s limited commercial momentum to expand non-Hass varieties for the U.S. market, especially with high consumer demand for the successful Hass variety,” says Manuel Michel, managing director of the Columbia Avocado Board, in Orlando, FL.