Avocados in Charts: Dynamic growth and opportunities in the U.S. market
In this 'in charts' series of mini-articles, Colin Fain of data visualization tool Agronometrics illustrates how markets are evolving. In each series, he will look at a different fruit commodity, focusing on a different origin or market in each instalment to see what factors are driving change.
Over the last eight years, avocados have seen a staggering amount of growth, quickly going from being considered an exotic and somewhat strange non-sweet fruit, to staple in many homes across the U.S. Not to mention avocados' starring role during the Super Bowl, which has been highlighted year after year with the advertisements put out by Avocados from Mexico.
Compared to 2010, the industry moved 59% more volume in 2017, growing from an average of 114 million pounds to 182 million pounds per month respectively. This dramatic increase in volume highlights the breakneck pace with which the category has been growing.
Avocado movement in the U.S. market (in pounds)
Coupled with impressive growth in volume, the avocado markets have been able to offer very attractive pricing. With an average of US$32 for a two-layer flat, the market has seen few upsets while increasingly reaching for new heights, setting a record last September with an average of US$73.61.
Avocado Shipping Point prices in USD (two-layer flats)
This is the first mini-article of a series where we dive into the data and highlight the opportunities and risks that the market data can help us bring to light. By dissecting the market data that we can start getting a glimpse of what factors are driving change and how markets are evolving. In the graph below we can see how the volumes arriving in the U.S. have evolved over the last eight years. As we move through the series, we will explore the dramatic growth of Mexico and what that has meant to for the other origins, and other questions like how is California managing its considerable challenges? What happened to fruit from Chile? And how has Peru’s entrance into the market been accepted?
Comparing avocado movements from different origins in the U.S. market (in pounds)
In our industry everyone has an opinion of what has happened, what is happening and what will happen, which is part of the richness and the challenge that we face in bringing fresh produce to the world. Agronometrics is a data visualization tool that is built to help the industry find the information they need to drive their strategic decisions from the huge amounts of data that our industry depends on. If you found the information and the charts from this article useful, feel free to visit us at www.agronometrics.com where you can easily recreate these exact same graphs, or create your own to uncover the information that you need to drive your business.
We currently track 23 fruits in the U.S. and are looking to write articles on the most relevant and interesting ones to the industry.
If you would like to prioritize any particular commodity, please let us know in the comments.