Peruvian Avocado Exports to the US Grow 45% YoY on Increased Seasonal Window

Published 2023년 5월 8일

Peruvian avocado exports grew 45% YoY to the US market in 2022. While Mexico is still the leading supplier of avocados to the US, Peru has taken a more active role in the US supply. By extending its seasonal window availability, Peru has taken advantage of the itinerant shortage from Mexico. The increase in volume to the US has allowed the Peruvian avocado industry to strengthen its relationships with the different US retail channels by enabling Peruvian avocado exporters to negotiate more extensive marketing campaigns with retail stores in the US. Peruvian avocados promise to bring more significant availability to the all-year-round demand in the US.

Peruvian avocado exports to the United States have continuously risen over the last five years. In fact, 2022 was a record year for Peruvian avocado exports as it reached more than 135 thousand mt of avocados for the first time, a 45% YoY increase from the 92.8 thousand mt exported in 2021. Peru was able to allocate more volume to the US market in 2022 due to several factors that occurred throughout the year. All of these factors are related to the Mexican avocado supply, as avocado exports in Peru are still very dependent on the situation of the Mexican supply in the US.

Within that period, Mexico implemented fewer marketing promotions than in other months, as the supply coming out of the country was lesser over this period. Therefore, if Peru is able to increase its supply in early April, but importantly, to extend it to late October, it further increases the volume to the US and, at the same time, increases its current share in the US. According to the Peruvian Avocado Commission (PAC), Peruvian avocados now have the advantage of extending their presence in the United States from April to the end of October.

Source: ITC Trade Map

Another factor that is helping Peruvian avocados strengthen their presence in the US is the fact that the Michoacan region exported 1 million mt of fresh avocados in 2022 compared to the 1.15 million mt exported in 2021. In 2022, the region of Michoacan experienced an avocado production decrease of about 6% YoY, which was reflected in the decreased volume exported to the US. At the same time, the USDA authorized the Jalisco region as the second state in Mexico for avocado exports to the US. However, the Jalisco authorization came into effect until September 2022. Therefore, Peruvian avocados benefited from the decrease in volume in Michoacan been able to increase volumes in Q1 and Q2 of 2022.

A clear sign of Peruvian avocados' expanded seasonal window today is the volume exported in 2023. According to the Nation Agrarian Peruvian Confederation (CNA), from January to mid-March 2023, Peru exported 35.2 thousand mt of avocado, reflecting an increase of 53% compared to the 23 thousand tons shipped in the same period the previous year. Peruvian avocado exports usually intensify in March when a larger supply is harvested from the different regions. However, each year Peruvian avocados have started appearing earlier in the year in Europe and the US and have also seen their presence extended until mid-October.

Source: ITC Trade Map

The increase in volume to the US has allowed the Peruvian avocado industry to strengthen its relationships with the different US retail channels. While Mexico has implemented robust marketing strategies through its year-round presence in the US market, seasonal windows remain when other origins could increase their presence. A wider season availability will enable Peruvian avocado exporters to negotiate more extensive marketing campaigns with retail stores in the US.