The love millennials have for avocados has become the identity of a generation. In fact, the fruit is so important for this generation that UBS considers it one of the eight millennial must-haves among the likes of Netflix, iPhone, Notebook and a cup of coffee.
Millennials are the largest generation in the US workforce . Meanwhile, the popularity of avocado has increased owing to the trends towards healthy eating, coupled with its benefits of healthy fats. For this reason, demand for avocado has skyrocketed worldwide.
Particularly in the already huge and burgeoning Chinese imported fruit market, the main avocado exporters (Mexico and Chile) have seen their exports grow about 250 percent a year.
As interest for the ‘green gold’ rises worldwide, Mexico the producer of almost half the world’s avocados now has higher net inflows from avocado than petroleum.
Due to the tremendous increase in its demand by the health-conscious middle-class, we believe that the supply may not meet the rising demand over the next 20 years.
Sources: UBS, Pew Research Center, Financial Times, El Financiero, The Brookings Institution