Global Demand for Avocados is Increasing

Global Demand for Avocados is Increasing Global demand for avocados is increasing. Manufacturers are trying to create new markets. Although Mexico is the leading country in avocado exports, Peru and Colombia also increase their production, following the traditional producer Chile and California. It is estimated that the demand for avocados will increase in Asian countries as well as in Europe in the coming period. According to Bloomberg HT's report, the Millennium generation and its children are driving the increase in global supply by consuming avocados in different ways and more than ever before. Restaurant chains like Chipotle use tons of avocados for their specialty Mexican food. According to Suntrust analysts, around 5-10 percent of the cost of all food that Chipotle sells is avocados. On the other hand, it is observed that the price fluctuations in recent years have a devastating effect on the company's margins. Due to the supply imbalance in 2019, prices broke a record and surprised the consumer. The increase in production in Mexico and California had a slight downward pressure on prices. According to the report, while the demand for Haas avocados is estimated to increase by 5 percent each year in the next 5 years, countries are making efforts to enter the Chinese market with great potential.     Source: Bloomberg HT