The world’s appetite for avocados continues to grow at a rapid rate, with the global market ‘smashing’ the US$20 billion (AU$30 billion) mark for the first time.

According to a newly released report from Rabobank, three main regions represent 88 per cent of this market value – Latin America, North America and Europe.

North America has seen a significant increase in avocado demand growth in the past two decades, led by marketing campaigns, while Latin America continues to lead global consumption. The market value in the rest of the world is still low (at 12 per cent), presenting opportunities for growth.

Aussie production

Australia is experiencing a dip in avocado production with the 2024/25 crop estimated to be down 15 per cent on last year, says Rabobank

But the drop in Australia’s booming ‘avo’ production is expected to be short-lived, resulting from the phenomenon of ‘alternate bearing’ where trees can produce a large crop one year followed by small or no crops the next.

Australian production is forecast to rebound to record volumes – of around 170,000 metric tons – in 2025/26.

And even with the decline in this year’s production, there will still be plenty of avocados to go around, with Australia estimated to produce 128,000 metric tons of the fruit in the 2024/25 season – which equates to close to 20 avocados per person a year.

Export opportunities

RaboResearch analyst Anna Drake says while Australian avocado export volumes remained flat in 2024, export prices improved for growers, up 13 per cent year-on-year to AU$5.18/kg.

“Export volumes to the major destinations of China, Singapore and Malaysia remained almost unchanged year-on-year, while those to India increased sharply after improvements in market access,” she said.

Over the past five years, Australian avocados exports have shown impressive growth, with 10 to 15 per cent of production volumes now moving into export channels.

Ms Drake says following the anticipated rebound in Australian avocado production next season, continued export growth across Australia’s key markets will be a critical factor in easing downward pressure on prices for the industry.