Avocados are 'pandemic-proof' crop in lockdown health craze

New York

HEALTH-CONSCIOUS consumers are eating avocados like never before during the pandemic.

After a brief drop in demand at the start of the Covid crisis, European and US consumption are hitting record highs, according to Xavier Equihua, chief executive officer of the World Avocado Organization, a trade group. "Consumption is off the charts," Mr Equihua said in an interview from California. "People want to eat healthy. The new luxury post-pandemic is going to be eating healthy, and wellness. Even the fashion industry is saying that."

Demand for the fruit has accelerated as more consumers eat at home. No longer just a component of guacamole for parties, its use has broadened to salads, burritos and, of course, the hipster cliche of avocado toast. Europe's consumption will jump 12 per cent this year to a record 1.48 billion pounds, according to import data, while US demand will increase 7 per cent, Mr Equihua said, citing industry projections.

"It's not only the millennials," Mr Equihua noted. "They are now having kids and they are eating avocado, too. Gen Z also wants healthy food. We're going to see a further explosion in the next six to eight years" when Europe may catch up to the top-consuming Americans, he felt.

The value of global avocado imports grew the fastest among main fruits over the past decade, according to David Magana, senior analyst for Rabobank International. Global demand for Hass, the most popular variety, will grow at an annual rate of almost 5 per cent through 2025, topping US$8 billion globally, the Hass Avocado Board projects.

Luckily for consumers, bumper crops in Mexico and California, the top suppliers to the American market, brought prices down this year after a supply disruption in 2019 sent prices to record, Mr Magana said. From 2010 to 2018, world output rose from 2.87 million tonnes to 6.4 million, with planted area nearly tripling, according to data from the United Nations' Food and Agriculture Organization, which excludes Chile, an important producer.

While lower prices have helped demand, US market penetration has room to grow, according to Mr Equihua. The average American eats eight pounds a year, compared with Mexico's 20 pounds, he said.

One of the main challenges for the industry remains to ensure that supply keeps up with demand, to avoid a surge in prices, while also addressing criticism that some countries are expanding production using non-sustainable practices for the environment, he explained.

"We're just scratching the surface in Europe, China" and other parts of Asia and South-east Asia," said Steve Barnard, chief executive officer at Mission Produce Inc, the world's largest supplier, which owns packing facilities and grows fruit as well. "India is starting to explore avocado consumption and based on the population in those areas, the expansion and demand has huge opportunity for growth." BLOOMBERG