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Mexico's avocado industry thrives due to its lower production costs and favorable growing conditions
Mexico accounts for about 90% of the avocados consumed in the United States, according to the U.S. Department of Agriculture (USDA). This staggering figure, amounting to an estimated $2.7 billion in imports for 2024, reflects Mexico's unmatched ability to meet the skyrocketing demand for the fruit, which has more than tripled since 2001.
While California produces approximately 90% of the U.S.-grown avocados, its output falls significantly short of meeting domestic demand. The California Avocado Commission notes that the state's avocado production has declined since its peak in the early 2000s, driven by high production costs, water scarcity, and soaring real estate prices. Mary Lu Arpaia, a subtropical horticulture specialist at the University of California, Riverside, noted that California's avocado industry has become a minor player, attributing this shift to the state's resource limitations and rising costs, which have constrained local production. In contrast, Mexico's avocado industry thrives due to its lower production costs and favorable growing conditions. More than 80% of Mexico's avocado exports are destined for the U.S., and the industry continues to expand. In 2022, the state of Jalisco joined Michoacán as an approved exporter of avocados to the U.S., potentially increasing Mexico's market share even further.
With U.S. agricultural production declining overall, the reliance on Mexican imports for avocados is unlikely to wane, reinforcing Mexico's dominant position in the market.
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