Chilean Avocado Market Guide

The most consumed sizes in South America usually range from 48s to 84s, which is equivalent to 16 to 30 in the European market. Size popularity trends also depend on seasonality.

Global Market

• Global Market Size: 6.58 B (2020)
• 235% Increase (Over the last 10 years, 2011 vs 2020)
• 51% increase (Over the last 5 years, 2016 vs 2020)

Avocado Export Markets (2020)

• Mexico 2.74 B
• Peru: 759 M
• Spain: 442 M
• Chile: 219 M (Normally 300 M)
• Kenya: 169 M
• US: 164 M
• Columbia: 146 M

Avocado Import Markets (2020)

• EU: 72.4%
• LATAM: 11.6%
• Asia: 8.6%
• North America: 7.4%

Trends and Characteristics

• In 2020, Production / Export levels were the lowest due to the climate issues
• Dominated by a few key players in the market, 80% big players vs 20% small/medium players
• A saturated supply market as the large players only get larger
• With Chile's domestic consumption increasing significantly, Chilean suppliers are showing a growing preference towards supplying to the domestic market

MY 2019/2020

• Chile exported 133K mt of Avocados
• 8 Companies exported 110K tons of the total 133k mt, which is more than 80%. As seen, these exports were heavily dominated by a few players

MY 2020/2021 (2020 Aug – 2021 Feb)

• This Marketing Year recorded a historic low in production and export volumes due to heavy drought
• The Peruvian and Colombian Avocado market took market share from that of Chile's

MY 2021/2022

• Production: Set to be higher than that of the previous year. It remains uncertain, however, whether it will recover to previous production levels 
• Chilean Avocado Production estimates are particularly difficult to achieve, due to the fact that most avocado-producing orchards exist in hills. The great variability of hill structure and compositions, compounded by uneven topography make estimations difficult to perform
• Markets are more stable than last year, and internal consumption has grown significantly, which is set to put minimal pressure on exports
• It is worth noting that growers are making more money selling in the domestic market rather than exporting abroad
• Positive import trends will remain in China. Chinese buyers have demonstrated their willingness to pay high prices for Chilean avocados given the particular oily quality that Chilean avocados possess, as opposed to other avocados like Peruvian avocados. For instance, in September 2021, a Chinese buyer paid for Chilean avocados, at the rate of USD 10/kg

The UK Is Ranked 2nd in Chile Hass Avocado Export

• In 2020, the UK imported a total of 122,298 mt Avocados from countries including Peru, Chile, South Africa, Israel, Spain, Colombia, etc.
• The UK is seen to be one of the most profitable markets for Avocado, given its increasing consumption trend relative to its population of 67.22 million (2020)

• In most cases, a grower doesn't also play the role of an exporter. This is due to the fact that when growers export directly, they are subjected to additional tax.
• Large-sized growers establish separate companies to export fruit, which significantly decreases tax liability.

• Domestic harvest period: All year long, but peak production is 4th quarter every year
  

• Export Season: August – February (Export season is limited to Q3, Q4 because there is excess demand in the domestic market outside of this period; it is way much profitable for the Chilean growers to sell the goods in the domestic market between Q1, Q2)
  

Seasonality by Variety

Seasonality by Country

• Main importing countries include the Netherlands, UK, Germany, USA, and Spain
• The low export volumes to the Netherlands and the UK in 2020 were due to the record low production volumes that year 
• 72% of export production is headed to the EU and the remaining volumes head to LATAM, East Asia, and North America
• Specific destinations for Chilean Hass Avocado from highest to lowest order includes:
  The Netherlands (27%), UK (13%), Germany (11%), USA (7%), France (6%), China (5%)

Source: Tridge Trade Data

The Chilean Avocado export market is heavily dominated by a few players. Main exporters include Propal, Agricom, Jorge Schmidt Cia, El Parque, Santa Cruz, Subsole, and Cabilfrut. These top seven players account for 83% of the total export volume.