Avocado buyers are over-indexed shoppers at retail, HAB study finds
Avocado buyers are over-indexed shoppers at retail, HAB study finds
If you put an avocado in your shopping basket during your trip to the supermarket, you are most likely going to buy a lot more groceries than your average consumer.
That was one of the findings of a study just released on the buying habits of avocado consumers. The Hass Avocado Board, which has become the research arm of the U.S. avocado industry, released its latest study in September called “Keys to the Cart: Driving Hass Avocado Sales at Retail.” The focus of the study was to determine how avocado purchases impact the value of the retail market basket, and identify key shoppers and purchase behaviors driving these results. The study revealed many gems including: shoppers spend 65 percent more in-store overall when avocados are in the basket; and millennial shoppers spend 73 percent more in-store overall when avocados are in the basket.
“The study, based on IRI household panel data, yields actionable insights into how high-value shoppers, such as millennials, are driving the category by purchasing avocados more frequently and spending more each time,” said Emiliano Escobedo, executive director of HAB.
Avocados growing in Mexico. (Photo courtesy of Index Fresh)The Hass Avocado Board, which was established in 2002 to promote the consumption of Hass avocados in the United States, has become a powerhouse of research for the industry. It has focused on several key areas including the all-important nutritional make-up of an avocado, as well as the demographic make-up of your typical buyer.
On the nutritional front, HAB is building the case — study by study — of an item with a very nice story to tell, healthwise. It’s market research helps retailers and others know a lot more about the end user.
This latest shopper study found that more than half of U.S. households purchase avocados with an average of 33 days between purchases. Escobedo said the moderate to heavy users buy a majority of the avocados sold in the United States, and that group tends to buy avocados three to four more times than the average person who buys avocados. Taking the entire shopping population, on average, shoppers purchase avocados six times per year and spend $3.49 per purchase. This equates to an annual avocado dollar spend of $20.76 per household.
Escobedo said retailers benefit in several ways from the robust avocado category. Most importantly, shoppers spend more in-store overall when avocados are in the basket —the average retail market basket with avocados in it is $68 compared to an average of a $54 basket without avocados.
Drilling down into “millennial households,” the study found that this are delineation is more likely to buy avocados and spend more on avocados than non-millennials. Millennials spend 22 percent more per occasion. The average millennial basket with avocados is a healthy $76.36.
The study also found an interesting fact when separating buyers out by how they purchased their avocados. Shoppers who purchase both bulk and bagged avocados spend significantly more each year and purchase avocados more frequently than those devoted to just one type or the other. However, “bagged only buyers” do have the highest avocado market basket at each shopping event at a lofty $137.93.
Escobedo said another interesting note from the study was “how regional segmentation sheds light on areas that may be poised to deliver the next big wave of category growth.” It was discovered that the retail market basket with avocados in emerging regions (aggregate of Midsouth, Great Lakes, Northeast, Plains and Southeast) is higher than in developed regions (aggregate of California, West and South Central). And the annual avocado spend is increasing at a faster rate in the emerging regions.
“While avocados are clearly a standout category, the retailer benefits of stocking avocados extend well beyond the category itself. The insight into these high-value shoppers is helpful for marketing and merchandising in today’s shopper-centric environment,” Escobedo said. “The study identifies some key segments that drive current category growth, and also builds an awareness of where opportunities may be stronger for future growth.”
Another factor clearly driving avocado sales is the item’s nutritional content. Once considered a food with too much fat, HAB’s research, in conjunction with many other studies, has focused attention on good fat versus bad fat. In fact, Escobedo said the next dietary guidelines released by the U.S. Department of Agriculture are expected to delete the limit of fat in the diet. He expects this will be a marketing boost for items such as avocados and nuts, which have long been identified as carriers of fat — the good fat.
HAB has also funded many other studies potentially showing benefits of avocados in areas such as cardiovascular health and obesity. And he said the newest study about to be released indicates some advantages in the areas of macular degeneration and cognitive ability. Escobedo said developing specific health claims is a very arduous task but HAB can help build the case for avocados with all these studies. “The board is building a body of science around the avocado,” he said.
He noted that good research gets cited in the next research effort and this is all very beneficial for the avocado. He said the building of the nutritional case is very important and can help guide nutritional decisions for years to come. For example, he said the earlier USDA dietary guidelines limiting fat intake were not beneficial, and they have been in vogue for the past 35 years.
Escobedo also touted a new relationship HAB has developed with the American Diabetes Association. It is the first time, he said, that association has partnered with a “whole food.” There are many recipes out there that advance the avocado as a substitute for sugar and butter. As such, the avocado obviously fits the criteria established by ADA as a diabetes-friendly food.