Mexican avocado imports fuel long-term economic growth in both U.S. and Mexico

As the only region that can currently meet the ever-growing demand for avocados in the United States, Mexico and its fresh imports are contributing to a positive economic impact in both countries, according to data contained in the Avocado Institute of Mexico’s 2023-24 Economic Report.

The report dives into the mutual economic benefits of the Mexico-U.S. avocado trade arrangement, with data pointing to the true value of avocados’ financial impact on both national and state economies.

There has been continued, long-term growth in a variety of categories — perhaps most notably a 340 percent increase in the U.S. economic output in little more than a decade.

Hass avocado imports from Mexico contributed to $1.7 billion in U.S. aggregate output in 2012 compared to $7.5 billion in 2023.

In the last fiscal year (July 2023-June 2024 growing season), $3.52 billion of U.S. imports of Mexican Hass avocados contributed the following to the U.S. economy:

• $7.5 billion in U.S. economic output
• $4.2 billion in U.S. GDP
• $2.5 billion in U.S. labor income from more than 42,000 U.S. jobs for American workers
• $1.1 billion in U.S. taxes

There are approximately 35,000 avocado growers in Mexico, the vast majority of which are cultivating on small family farms. With more than 90 packing houses, the collective 2.4 billion pounds of Hass avocados they exported to the U.S. last year resulted in $6 billion in economic output in Mexico4

“The new data validates the positive economic impact spurred by Americans’ embrace of the fruit, the mutually beneficial relationship between our two countries, and the importance of maintaining strong trade ties,” said Ron Campbell, executive director of the Mexican Hass Avocado Importers Association. “The avocado industry is a source of employment and economic value, and we are committed to continue working with our partners in both countries to ensure the sustainable and responsible growth of this industry.”

Heightened economic impact in Key U.S. and Mexico States
“Imports of Mexican Hass avocados continue to be pro-growth for the U.S. economy, and historical growth patterns indicate this will likely only intensify over the years,” said Dan Hanselka, extension program specialist at Texas A&M University and a co-author of the study. “Every dollar of Mexican Hass avocado imports in the fiscal year 2023-24 generated $2.13 in economic output in the U.S., with a more concentrated impact in California and Texas, the country’s largest avocado-consuming states.”

Together, California and Texas accounted for roughly 20 percent of the total U.S. economic output in the past year with $965.2 million and $468.7 million, respectively.

The trade relationship has also had a particularly significant influence in the region of Michoacán, Mexico, which in many ways is the heart of the country’s agricultural sector. The area has benefited from a higher GDP and the creation of steady jobs in both the growing fields and packing houses.

Boosting U.S. Demand for Mexican Avocados: A Collaborative Success
Avocados From Mexico acts as a connecting bridge between countries, bringing together organizations that promote the consumption of Mexican avocados in the U.S. by working with the Mexican Hass Avocado Importers Association (MHAIA) and the Association of Avocado Exporting Producers and Packers of Mexico (APEAM). The collaborative efforts have fueled demand for the fruit, leading to improved quality and record-breaking sales.

“Avocados From Mexico has played an important role in accelerating avocado consumption in the U.S., resulting in a 120 percent increase in volume of Mexican avocado imports within the past 10 years,” said Alvaro Luque, CEO of Avocados From Mexico, the No. 1-selling avocado brand in the U.S. “We’re driving demand for avocados and multiplying the market with a brand strategy rooted in the trifecta of benefits only Avocados From Mexico can deliver: flavor, nutrition, and fun.”

Avocados have become a staple ingredient in American homes, with a household penetration of about 70 percent in the U.S., and Luque is confident there’s still room for growth.

He noted that the focus on healthier diets is an opportunity to inspire Americans to buy more avocados, which have good fats and nearly 20 vitamins and minerals including fiber and potassium.

Avocados will also continue to appear on restaurant menus in more ways as younger Americans who grew up with the fruit are more familiar with its versatility and eager to embrace recipe innovations beyond guacamole and avocado toast.