Global vs Australian Avocados: A Changing Landscape

The global avocado industry has undergone significant changes over the past five years, driven by increased demand and new innovations.

Australian Avocados are consistently in high demand, and 2021/2022 domestic consumption jumped to nearly 4.5kg per capita, up from 3.5kg per capita the prior year. Yet Australian Avocados prices on shelf have dropped steadily as production in Australia hit an all time high.

The global avocado industry has undergone significant changes over the past five years, and this has a direct effect on the Australian Avocados Industry. One of the most notable changes has been the increased demand for avocados, driven by growing consumer interest in healthy and versatile food options.

Avocados are now widely recognised as a nutritious fruit, with high levels of healthy fats, fibre, and vitamins. As a result, they have become a staple ingredient in many households, both in developed and developing countries. What can we learn about the evolving Avocado industry and how will the global changes impact the wider Australian Avocados Industry?

Avocado Based Products Driving Demand

Another factor driving demand is the growing popularity of avocado-based products such as avocado toast, guacamole, and avocado oil. This has created opportunities for companies that produce and distribute these products, both in the retail and food service sectors.

Avocado production has increased dramatically to meet the growing demand, with major producers in countries such as Mexico, Peru, Chile, and California leading the way. Similarly in Australia, growers of Western Australian Avocados have boomed, with Avocado production at 47,316 tonnes in 2021/2022 yet only yielding 6,163 tonnes 10 years prior.

However, with the increased demand for and production of avocados has come some challenges. One of the most significant challenges is the environmental impact of large-scale avocado farming. Growing avocados can be water-intensive, and the increasing demand has led to the deforestation of large areas of land in some countries. This has raised concerns among consumers and environmental groups about the sustainability of the avocado industry.

Avocado Price Volatility Raises Concerns

Another challenge facing the avocado industry is the volatility of prices. Australian Avocados prices can be impacted by a number of factors, including changes in demand, weather conditions, and geopolitical events. This has made it difficult for producers, retailers, and food service companies to plan and budget for the future. To address this issue, some companies have started to invest in new technologies and systems that help them better manage their supply chains and respond to market fluctuations. Australian Avocado growers are investigating new AgTech to enhance their crop production quality.

Australian Avocados Industry Innovations vs Global Innovations

Despite these challenges, the global avocado industry continues to grow and evolve. Innovations in packaging and distribution have made it easier and more convenient for consumers to purchase avocados, while new products and services are being developed to meet the growing demand. For example, there has been a significant increase in the number of companies offering home delivery of avocados, making it easier for consumers to access fresh and high-quality products.

Despite the global growth, one area where the Australian Avocado Industry is ahead of many other countries is in sustainability. Australian avocado growers have been increasingly adopting sustainable practices, such as using natural pest management methods and minimising chemical use.

Additionally, Australian avocados are grown in a relatively small geographic area, which reduces the environmental impact of transporting the fruit. These sustainable practices may give Australian avocados a competitive advantage in some markets.

Demand Plays a Part in Growth for the Australian Avocados Industry

In conclusion, the global avocado industry has undergone significant changes over the past five years, driven by increased demand and new innovations. But so has it’s Aussie equivalent. With consumers becoming more aware of the source of the produce they consume, demand has begun to rise for Australian Avocados to be a more prominent offering in our grocery stores.

Looking for More Australian Avocados Industry Market Data?

These are just a few examples of the market insights that have impacted the Australian Avocados Industry in the last 36 months. Whether you are a grower, retailer or researcher in the industry, keeping track of changing trends and insights is critical to making informed decisions.

You can find out more up to date Global and Australian Avocados Industry data on the Freshincite section of our website. We have a broad range of data and insights available including the latest trends and topics affecting the agriculture and grower industry in Australia. You can also sign up for our Freemium Data Insights service where we send regular analytics based on the latest news and happenings in the fresh produce industry.

Need something a little more robust? Contact our team to discuss setting up your own customised dashboard or getting regular reports

About Freshlogic

Freshlogic are a Sydney based market research agency specialising in avocado market data and insights, agriculture industry insights and retailer analytics. We provide a series of market insights across a range of products suitable for the food service supply chain and those looking to invest in businesses within the fresh produce industry. At Freshlogic we know that:

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