As the only region that can currently meet the ever-growing demand for avocados in the U.S., Mexican avocado imports have a positive economic impact in both countries. The Avocado Institute of Mexico has released its 2023-2024 Economic Report, which examines the mutual economic benefits of the Mexico-U.S. avocado trade arrangement.

The data showcases the actual value of avocados' financial impact on both national and state economies. There has been continued, long-term growth in various categories — perhaps most notably, increased the U.S. economic output by 340% in little more than a decade.

In the last fiscal year (July 2023 – June 2024 growing season), $3.52 billion of U.S. imports of Mexican Hass avocados contributed the following to the U.S. economy:

• $7.5 billion in U.S. economic output
• $4.2 billion in U.S. GDP
• $2.5 billion in U.S. labor income from more than 42,000 U.S. jobs for American workers
• $1.1 billion in U.S. taxes

There are approximately 35,000 avocado growers in Mexico, most of whom cultivate on small family farms. With more than ninety packing houses, the collective 2.4 billion pounds of Hass avocados they exported to the U.S. last year resulted in $6 billion in economic output in Mexico.

"The new data validates the positive economic impact spurred by Americans' embrace of the fruit, the mutually beneficial relationship between our two countries, and the importance of maintaining strong trade ties," said Ron Campbell, Executive Director of the Mexican Hass Avocado Importers Association (MHAIA). "The avocado industry is a source of employment and economic value, and we are committed to continue working with our partners in both countries to ensure this industry's sustainable and responsible growth."

Heightened Economic Impact in Key U.S. and Mexico States

"Imports of Mexican Hass avocados continue to be pro-growth for the U.S. economy, and historical growth patterns indicate this will likely only intensify over the years," added Dan Hanselka, Extension Program Specialist at Texas A&M University and co-author of the study. "Every dollar of Mexican Hass avocado imports in the fiscal year 2023/24 generated $2.13 in economic output in the U.S., with a more concentrated impact in California and Texas, the country's largest avocado-consuming states."

California and Texas accounted for roughly 20% of the total U.S. economic output in the past year, with $965.2 million and $468.7 million, respectively.

The trade relationship has also had a particularly significant influence in the region of Michoacán, Mexico, which is, in many ways, the heart of the country's agricultural sector. The area has benefited from a higher GDP and the creation of steady jobs in both the growing fields and packing houses.

Boosting U.S. Demand for Mexican Avocados: A Collaborative Success

Avocados From Mexico acts as a connecting bridge between countries, bringing together organizations that promote the consumption of Mexican avocados in the U.S. By working with the Mexican Hass Avocado Importers Association (MHAIA) and the Association of Avocado Exporting Producers and Packers of Mexico (APEAM). The collaborative efforts have fueled demand for the fruit, leading to improved quality and record-breaking sales.

"Avocados From Mexico has played an important role in accelerating avocado consumption in the U.S., resulting in a 120% increase in volume of Mexican avocado imports within the past 10 years," said Alvaro Luque, CEO of Avocados From Mexico, the number one selling avocado brand in the U.S. "We're driving demand for avocados and multiplying the market with a brand strategy rooted in the trifecta of benefits only Avocados From Mexico can deliver: flavor, nutrition, and fun." 

Avocados have become a staple ingredient in American homes, with a household penetration of about 70% in the U.S., and Luque is confident there's still room for growth. The focus on healthier diets is an opportunity to inspire Americans to buy more avocados, which have good fats and nearly 20 vitamins and minerals, including fiber and potassium. Avocados will also continue to appear on restaurant menus in more ways as younger Americans who grew up with the fruit are more familiar with its versatility and eager to embrace recipe innovations beyond guacamole and avocado toast.

For more, find the full Economic Report here.

About the Avocado Institute of Mexico

The Avocado Institute was created by the parent organizations of AFM, the Association of Avocado Exporting Producers and Packers of Mexico (APEAM), and the Mexican Hass Avocado Importers Association (MHAIA). It is a one-stop digital resource that deepens into all facets of the Mexican avocado industry.

Related article: President-elect Donald Trump plans to impose tariffs on all Mexico and Canada imports