Growing avocado supply brings uncertainty

The global supply of avocados continues to grow steadily. At the same time, market unpredictability is on the rise. RaboResearch reported this in a new market update on the sector. For Dutch importers, this development brings both new challenges and opportunities.

The global avocado market is entering a new phase. Climate change, geopolitics, and supply chain disruptions are making the market less predictable. Temporary oversupply is also playing a role. As a result, Dutch importers and the European market are facing uncertainty. This directly impacts volumes, quality, and market prices.

Unrest increases production costs

Geopolitical instability leads to rising production costs and market disruptions. This was recently clearly visible in the Middle East, for instance. Meanwhile, the structural growth of global supply continues unabated.

European demand for avocados grows

In the European Union, the popularity of avocados is still increasing. According to analysts, there is room for further growth. However, better alignment between supply and demand is essential. More promotion is needed to effectively absorb the summer peak.

Supply from Africa is increasing

South America remains the primary supplier for the European market. However, supply from Africa is also growing rapidly. These avocados are originating from an increasingly diverse range of countries.

Rabobank.nl