Mexican avocado imports generated over $7B in US economic activity

Mexican Hass avocados may cross the border by the truckload, but their economic impact extends far beyond the produce aisle. Imports generated $7.14 billion in economic output and supported 37,163 jobs in the United States during fiscal year (FY) 2025/26, a Texas A&M University report reveals.

The study, prepared for the Mexican Hass Avocado Import Association (MHAIA) and the Association of Avocado Producers and Exporting Packers of Mexico (APEAM), valued imports at $3.23 billion in fiscal 2025/26. 

Furthermore, Mexican avocados’ footprint in the US has more than tripled in the last 13 years, with consumption also trending almost continuously upward for over two decades.

"With the freeing up of imports, avocados from Mexico got caught up in a massive and sustained growing US consumer trend towards ethnic as well as health-promoting foods, particularly as consumers became increasingly aware of the 'superfood' health profile,” the document notes.

Additionally, between FY 2012/13 and 2025/26, the category’s estimated economic contributions grew substantially across all major measures.

"A 220 percent increase in import value from $991.9 million in FY 2012/13 to $3.2 billion in FY 2025/26 boosted the contribution of those imports to US output by 320 percent from $1.7 billion to $7.1 billion," the report says.

Avocado dollars ripple through US economy

The study estimates that every dollar of Mexican Hass avocado imports generated another $2.21 in total US economic output, contributed $1.35 to GDP and generated $0.76 in labor income.

Overall, imports supported $4.36 billion in US GDP, $2.44 billion in wages, salaries, and benefits, and $1.04 billion in combined federal, state, and local tax revenue. The estimated tax contribution equaled 32 percent of the FOB value.

However, economic impact dropped across all five major markers in 2025/26. Total economic output declined 23 percent to $7.14 billion, while the estimated GDP contribution fell another 23 percent to $4.36 billion. 

Employment supported by the import supply chain dropped 25 percent to 37,163 jobs, while labor income declined 23 percent to $2.44 billion. Estimated tax revenue fell 22 percent, from $1.34 billion to $1.04 billion.

Despite the lower numbers, economic activity associated with Mexican Hass avocado imports extends across industries.

"Even so, the measured growth in the contributions of US imports of Mexican Hass avocados to the US and state economies since the first study was conducted for FY 2012/13 has been remarkable," the assessment notes.

For example, wholesale and retail trade and services represented 79 percent of total economic output, 84 percent of the GDP contribution, 84 percent of employment, and 81 percent of labor income associated with the imports.

On the logistics side, transportation and warehousing generated $641.5 million in output and $366.9 million in GDP contribution. Manufacturing accounted for $474.3 million in output, while agriculture contributed $39.4 million.

Regional effects

California and Texas, two of the country's largest avocado-consuming states, took a big bite out of the economic activity associated with Mexican imports.

The Golden State's allocated share of imports totaled $605 million, generating an estimated $968.2 million in economic output and contributing $580.9 million to state GDP. The supply chain supported 5,325 jobs, generated $357 million in labor income and contributed $172.5 million in tax revenue.

In Texas, an allocated import value of $245.1 million generated an estimated $428.9 million in output and $265.5 million in state GDP contribution. The activity supported 2,402 jobs, generated $147.3 million in labor income and contributed $57.2 million in tax revenue.

“Despite ups and downs in recent years, the contributions to the US economy from Mexican Hass avocado imports over the years have experienced strong upward growth," the report stresses.

* Top photo created with AI.

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