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Do you enjoy healthy avocado toast? Love that creamy guacamole that makes your game days epic? Well, you need to thank the neighbors in the South — Mexico — that supply 90% of the avocados the US consumes. In this issue of SKU Hero, we unravel the journey of the avocado from Mexico and how it became one of America’s favorite fruits.

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Super Bowl Sunday isn’t just a football game. Today, it has become a vital part of the American tradition. Families and friends crowd around their TVs or stream the game online, celebrating touchdowns, halftime shows, and unforgettable commercials. The 2024 Super Bowl brought in a jaw-dropping 123.4 million viewers, becoming the most-watched broadcast since the historic 1969 Moon landing.

Of course, no Super Bowl party is complete without snacks. While chicken wings and chips are fan favorites, guacamole often takes center stage. Made with fresh avocados, this creamy, flavorful dip has become a crowd-pleaser on game day.

Most of the avocados enjoyed on game day aren’t grown in the United States. In fact, around 90% of them come directly from Mexico, making it the leading supplier of this popular fruit. 

In this article, we’ll explore how Mexico’s avocado industry fuels America’s love for the fruit and examine the incredible supply chain that brings this green gold to American dinner tables. 

Mexican avocados

Avocado cultivation has been part of Mexico’s history for over 10,000 years. It began in south-central Mexico, where the fruit was a staple for ancient civilizations. Fast-forward to today, and while avocados have become a global superfood, Mexico still is at the heart of their production.

In 2022, Mexico produced an impressive 2.65 million metric tons of avocados, accounting for over 28% of the global supply. That’s nearly three times as much as Colombia, the second-largest producer, which harvested 1.1 million metric tons.

So, what gives Mexico the edge? 

The state of Michoacán, responsible for more than 80% of Mexico’s avocado production, holds the secret. Its temperate climate, with just the right amount of rainfall, creates the perfect conditions for avocado trees to thrive. Add to that the region’s volcanic soil, packed with minerals, and you’ve got a recipe for rich, creamy fruit.

What’s more, Michoacán is one of the few places in the world where avocados can be grown and harvested year-round. This means Mexico can consistently meet global demand, even during peak consumption times like the Super Bowl.

The impact of this industry is huge. In 2022, Mexico’s avocado exports were worth over $3 billion. Between 2014 and 2023, avocado production in Mexico surged by an impressive 75%, solidifying its status as one of the country’s most important agricultural exports. Today, avocados rank as Mexico’s fourth most valuable export crop, trailing only beer, tequila, and berries.

Furthermore, the sector provides jobs for 34,000 farmers, workers, and supply chain professionals, making it a cornerstone of the nation’s agricultural economy. Of the avocados Mexico produces, 80% — roughly 1 million metric tons — are exported to the United States, its biggest customer.

But here’s the twist: three decades ago, Mexico didn’t export a single avocado to the U.S. So, what changed? How did avocados go from being a local fruit to an American obsession? Let’s break it down. 

Ban to boom

For decades, Mexican avocados were not allowed in the U.S. market. In 1914, a ban on Mexican avocados was implemented to protect American agriculture from pests like seed weevils, fruit flies, and stem borers and to protect American farmers from foreign competition. California’s avocado growers thrived under this protection, and Mexican avocados could never cross the border to meet American consumers.

For Mexico’s avocado industry, this was the green light they’d been waiting for. Slowly, trade restrictions started to ease. At first, Mexican avocados were allowed in a handful of U.S. states and during specific seasons. But by 2007, the floodgates opened, and Mexican avocados went nationwide. And thus began the American avocado boom!

Timing and marketing

The timing couldn’t have been better for avocados to make their mark in the United States. By the 1990s and early 2000s, Americans were increasingly shifting to a healthy diet – from low-fat diets to focusing on heart-healthy eating. As people started learning more about the benefits of "good fats," avocados became an obvious choice. Avocados are loaded with monounsaturated fats, packed with nutrients like potassium and fiber, and even earned a reputation as a heart-healthy superfood.

A study published in the Archives of Medical Research in 1996 found that eating avocados can help lower LDL (bad) cholesterol and raise HDL (good) cholesterol, reinforcing their image as a heart-healthy food.

With all these benefits, it didn’t take long for avocados to go from being a niche fruit to a must-have in every kitchen.

Interestingly, their appeal wasn’t just in the nutrition facts, though. Avocados offered versatility that few other "superfoods" could match. Whether mashed into guacamole, sliced onto toast, blended into smoothies, or even baked into desserts, they added creamy richness and a touch of luxury to any dish. This adaptability made avocados easy to love and even easier to sell.

But the real magic happened behind the scenes, thanks to some clever and well-funded marketing campaigns. Two key players—the Hass Avocado Board and Avocados From Mexico—led the charge.

The Hass Avocado Board was established in 2002 as a collective of U.S. avocado growers, but they didn’t work alone. Avocados From Mexico, formed in 2013, brought Mexico’s largest producers and exporters together under one powerful marketing umbrella. Together, these organizations set out to not just sell avocados but turn them into a cultural phenomenon.

One of their smartest moves was tying avocados to key cultural moments and what was bigger than the Super Bowl! 

By positioning guacamole as the ultimate party dip, these campaigns made avocados a game-day necessity. The Super Bowl ads themselves became legendary—humorous, memorable, and always reminding viewers that no party was complete without avocados. These ads were so effective that by 2023, Super Bowl weekend alone accounted for over 105 million pounds of avocado consumption in the U.S.

The success of avocados in America isn’t just a story of health trends and well-crafted marketing strategies. A big part of their rise lies in Mexico’s proximity to the U.S. and the robust supply chain that ensures a steady flow of avocados into American kitchens. From the orchards of Michoacán to the shelves of U.S. grocery stores, the avocado supply chain is a finely tuned operation.

Demand and supply

There are around 50,000 registered avocado orchards in Mexico, with the majority concentrated in Michoacán, the heart of global avocado production. According to the USDA, over 400,000 acres of land in Michoacán were planted with avocados in 2023. 

Interestingly, nearly 80% of these orchards are solely growers. These growers don’t handle harvesting or distribution themselves. Instead, when the fruit is ready, they sell it to the distributor who offers the highest bid.

Once the deal is made, the distributor takes over. They send their own teams to the orchards to handle the entire process — harvesting, inspecting, and transporting the fruit to nearby packing houses. 

At the packing houses, the avocados are carefully sorted by quality, labeled, and prepared for export. Before they can leave, the fruit undergoes another round of inspections by authorities to ensure it’s free from pests and meets the USDA’s strict standards.

Avocados heading to the United States begin their journey at major border crossings like Laredo, Texas, and Hidalgo, Texas. These two hubs are critical to the avocado supply chain. Laredo alone handles over 60% of all Mexican avocado imports, processing about 1,200 truckloads daily during peak seasons.

Once across the border, the avocados move to ripening facilities in states like Texas, California, and New Jersey. These facilities are equipped with advanced controls to bring the fruit to perfect ripeness, just in time for grocery store shelves or restaurant kitchens. From there, the avocados are distributed to major retailers like Walmart, Costco, and Whole Foods, as well as to food service providers. Some are even turned into pre-made guacamole and other convenient products for busy consumers.

The efficiency of this system is remarkable. In just four to five days, an avocado can go from being handpicked in a Michoacán orchard to sitting on a grocery store shelf. Avocados have a short ripeness window, typically just 2 to 7 days, which makes timing everything. Even a slight delay in the supply chain can affect their quality, so the process needs to be fast and efficient to get them to consumers at their best.  

So, in short, the perfect mix of health benefits, smart marketing, and a seamless, close-to-home supply chain has fueled America’s growing love for avocados. And there are numbers to back this: according to the USDA, the average American now consumes over eight pounds of avocados each year — nearly three times the amount they ate in the early 2000s.

It’s a fair question: if Americans love avocados so much, why aren’t we growing more of them domestically? 

Domestic issues

The short answer is that it’s complicated. Avocados are grown in the United States in California, Florida, and Hawaii, where the climate is favorable. While California grows about 90% of the avocados produced in the United States, the state’s ability to meet the growing demand has been significantly strained in recent years. 

Climate change has introduced unpredictable weather patterns, including persistent droughts, heatwaves, and wildfires, all of which have taken a toll on avocado farms. These challenges are compounded by the high cost of water, land, and labor in California, making avocado farming an increasingly difficult and expensive venture.

According to the California Avocado Commission (CAC), the state’s avocado production peaked in the early 2000s and has been on a steady decline ever since. In 2023, California growers produced approximately 233 million pounds of avocados, a 16% drop from 2022.

The challenges

The rise of Mexico’s avocado industry hasn’t come without its share of challenges. The lucrative nature of avocado farming has made it a prime target for drug cartels, particularly in Michoacán.

In response, some communities have organized self-defense groups, known as autodefensas, to safeguard their farms and livelihoods. While these groups offer some security, they also raise questions about their legality and whether they can effectively tackle the broader issue of systemic violence.

Another growing concern is the environmental impact of avocado farming in Mexico. To keep up with global demand, forests in Michoacán have been cleared or intentionally burned to create space for new orchards. This has led to significant deforestation, which threatens local ecosystems and biodiversity. 

On top of that, avocado farming is incredibly water-intensive. Each tree requires four to five times more water than native pine trees, further straining Michoacán’s already limited water resources. According to the World Economic Forum, approximately 9.5 billion liters of water are used daily to produce avocados—enough to fill 3,800 Olympic-sized swimming pools. This massive water extraction is depleting Michoacán’s aquifers, risking the region’s long-term sustainability.

The growing demand for avocados, both in the U.S. and globally, will only amplify these environmental and social pressures. In the U.S., where nearly 90% of avocados come from Mexico, demand shows no signs of slowing. 

Furthermore, trade policies could soon add another layer of complexity to the industry. President-elect Donald Trump has proposed a 25% blanket tariff on all imports from Mexico. While it is still not implemented, the mere possibility of such a policy highlights how fragile the avocado trade can be. 

For Mexican growers and exporters already struggling with cartels, deforestation, and water scarcity, tariffs would only intensify the challenges. For American consumers, this could mean paying significantly more for their beloved avocados.

Conclusion

The story of avocados is a testament to how a single crop can shape economies, diets, and cultures across borders. From ancient Mexican orchards to the modern American diet, avocados have become a symbol of health, flavor, and global trade. However, their journey is anything but simple. 

Avocados have brought tremendous economic benefits to Mexico, creating jobs for tens of thousands of workers and generating billions in export revenue. They’ve also given American consumers a beloved fruit that seamlessly fits into their diets and lifestyles. However, the industry faces severe challenges: criminal exploitation, environmental degradation, and the ever-present risk of trade disruptions. 

Today, Mexico’s avocado industry stands at a crossroads. The country must address the pressing issues of cartel involvement and unsustainable farming practices. Stricter actions must be taken to prevent illegal deforestation; stricter regulations on water use and stronger law enforcement to curb cartel activity are essential. At the same time, the U.S., as the largest consumer of Mexican avocados, has a role to play in supporting sustainable and ethical trade practices that protect the growers and the environment.

This newsletter was written by Shyam Gowtham

Thank you for reading. We’ll see you at the next edition!