Green gold: how avocados conquered the world and the earnings of exporting countries.
In the last 20 years, avocado consumption in the United States has tripled to 3.6 kg per person per year. In Mexico, the birthplace of the avocado, the fruit is referred to as green gold, and its global market has reached $18 billion and continues to grow.
The trend of healthy eating and the free trade agreement between the US and Mexico have helped the fruit conquer the United States. Thanks to a cookbook by Hollywood star Gwyneth Paltrow, avocado toast captured consumer attention and became an essential part of a healthy lifestyle.
How did a gardener's accidental experiment create the most popular avocado variety? How has fruit consumption grown in Ukraine and worldwide? Why are vast avocado plantations in Mexico not just a "gold mine" with billions in revenue but also a source of water scarcity, deforestation, and bloody wars involving local cartels?
From Aztecs and Mayans to Gourmet Delicacy
Avocados originate from Central and South America, where the warm climate provides ideal conditions for their cultivation. Mexico is the world market leader: the fruit has been grown there since the time of the Mayans and Aztecs. The tree was domesticated 5,000 years ago, and the first mention of "ahuacate" ("egg fruit") dates back to 1553.
"It looks like an orange, and when it's ready to eat, it turns yellowish. Tender and pleasant in taste," – described the avocado in 1519 by a Spanish colonizer.
Although this fruit was cultivated as an ornamental plant in the US since the 1830s, there was no commercial avocado industry there for a long time due to marketing issues. Many Americans at the beginning of the last century found it difficult to pronounce the original name "ahuacate," so in May 1915, a group of farmers invented the name "avocado," forming the California Avocado Association.
Despite the lack of a mass market for informed gourmets in Florida and California, this fruit was already a hit. The best hotels in Los Angeles and San Francisco sold it for a dollar each.
During those years, a mailman and amateur gardener, Rudolf Hass, bought an avocado pit of the "Fuerte" variety on the outskirts of Los Angeles, planning to graft it with another variety. After several unsuccessful attempts, he considered cutting down the seedling, but his children convinced him to save the tree. Its fruits, with dark green bumpy skin, turned out to be tastier than the avocados available on the market.
1 When the tree's yield increased, Hass sold the surplus fruits to his postal department colleagues. In 1935, he patented the "Hass avocado" variety and signed a contract for the cultivation and sale of seedlings, which earned him $5,000.
Conquering the USA
Over time, the Hass variety spread among avocado producers, and by the 1950s, prices dropped from $1 to 25 cents each – attracting the mass consumer.
The rise in the fruit's popularity was fueled by a surge of migration from Latin America to the US. Migrants brought their passion for avocados, a trend that continues: 90% of Latin Americans identify as avocado lovers.
In the early 1970s, California farmers traveled to the Mexican state of Michoacán (now the global hub for avocado cultivation). They were attracted by the large water reserves. "In this area, water is free," their report stated.
2 At that time, the import of fresh fruits from Mexico to the US was prohibited. However, this did not stop American farmers who invested in Michoacán, planning to sell the fruits in other countries. Soon, both American investors and local farmers focused on cultivating exclusively the "Hass" variety.
The 1994 free trade agreement between the US, Canada, and Mexico (NAFTA) and the advertising of Mexican guacamole during the American football championship helped recoup investments: prices fell, and consumption increased.
Thanks to its taste, size, shelf life, and high yield (in some areas, it bears fruit year-round), "Hass" became the most popular variety in the world.
Avocado Mania
Avocados are increasingly referred to as a superfood with exceptionally high levels of antioxidants, healthy fats, vitamins, and minerals. Scrambled eggs, ice cream, smoothies, purees – there are countless dishes made with this fruit.
A significant factor in elevating the exotic fruit's status worldwide, especially among the youth, has been the rise in popularity of avocado toast. This dish first appeared in a Sydney café in the early 1990s, but the turning point came in 2013. That year, Hollywood star Gwyneth Paltrow published her toast recipe in her cookbook It's All Good.
3 Culinary bloggers picked up the toast recipe, allowing avocados to conquer Instagram. The popularity of the toast drew even more attention to the traditional Mexican dish – guacamole.
How the Global Market Works
Global avocado production in 2022 exceeded 8 million tons. Mexico remains the largest player, cultivating 2.3 million tons of product on over 90,000 hectares of plantations. According to analysts' forecasts, the global market for this exotic fruit is expected to grow from $18.33 billion in 2023 to $38.71 billion by 2031.
In 2023, the US imported a record 1.25 million tons of avocados – 11% more than in 2022. Mexico was the main supplier, accounting for 90%. It is expected that the US and EU will remain the largest importers. Leading suppliers include American companies Mission Produce, Del Rey Avocado, and Calavo Growers.
The avocado market is expected to grow fastest in the Asia-Pacific region. The main factor is the rising popularity of Western cuisine in major cities in China and other countries in the region. "Asian imports in 2023 increased by 29% compared to the previous year, with China leading," – stated analyst David Magana.
Due to high demand for avocados in the EU, predominantly in Spain, the number of plantations is increasing. However, due to water scarcity, expansion of areas is not expected.
Areas are expanding in Africa as well: Kenya and Morocco maintain an upward trajectory in exports.