MISSION VIEJO, CA (October 11, 2023) – The Hass Avocado Board (HAB) is excited to share the findings of its recent study on the impact of bagged avocados on avocado category trends, shedding light on the remarkable shifts in the avocado category’s retail landscape over the past four years. The new Bagged Avocado Sales Drivers study analyzes retail sales and household panel data to uncover the underlying sales trends and purchase behaviors driving the growth of bagged avocados and their impact on the industry. The insights can provide a basis for industry stakeholders to refine their marketing strategies and messaging for bagged avocados, which can create greater shopper engagement within the avocado category.
During the start of the pandemic in 2020, following a strong performance in 2019, the avocado category experienced a significant 21% spike in retail unit volume, accompanied by an 8% increase in retail dollars. However, following a strong bump during the pandemic, 2021 saw a minor decline of 5% in unit volume while dollars were relatively flat. The trend continued into 2022, when the industry was met with rising inflationary pressures and volume dipped an additional 8%. With rising inflation, the category saw higher prices, which fueled greater dollar sales for both bulk and bagged avocados.
Among the contributing factors to these market dynamics, the rise of bagged avocado sales has played a pivotal role. Bagged avocados had been on a steady growth trajectory before 2020 but experienced a significant boost in both volume and dollar sales in 2020 and 2021. These results translated into a larger share of the overall avocado category sales over the period.
As bagged avocados continued to capture industry attention, the avocado category experienced a surge in the distribution of established and new packaging options.
Small (4046) 4 and 5-count bags together accounted for over half of retail sales for bagged avocados. These sizes also saw a notable increase in distribution, with a growth of 6 and 3 percentage points, respectively. Meanwhile, the introduction of Small 7-count bags made a substantial impact on sales growth.
Distribution of small 7-count bags more than doubled and were available in nearly 5% of stores in 2022. This relatively new package size demonstrated remarkable performance, with a unit sales velocity that was 55% higher than the next top performer.
The report also revealed changes in shopper purchase behaviors. While some shopper groups experienced declines in purchase behavior, the overall trend was positive. In 2022, the number of Moderate and Heavy shoppers that purchased bags declined as well as trips per household within these segments. However, spend per trip increased for all shopper groups. Ultra shoppers continued to purchase bagged avocados and were responsible for driving 64% of the growth in purchases. These trends emphasize the resilience of bagged avocados in the face of market fluctuations. Bagged avocados not only offer convenience to consumers but also represent a significant growth opportunity for retailers and marketers alike.
The study is based on retail sales and household purchase data from CircanaTM. HAB offers these insights and detailed retail information as the only avocado organization that equips the entire industry for success, with clear and actionable data and metrics that all can use to drive their avocado business. For a deeper dive into these retail sales and shopper purchase trends and to explore the myriad of opportunities they present, please visit www.hassavocadoboard.com/business-support-tools.
About The Hass Avocado Board
The Hass Avocado Board (HAB) exists to help make avocados America’s most popular fruit. HAB is the only avocado organization that equips the entire global industry for success by collecting, focusing and distributing investments to maintain and expand demand for avocados in the United States. HAB provides the industry with consolidated supply and market data, conducts nutrition research, educates health professionals, and brings people together from all corners of the industry to collectively work towards growth that benefits everyone. The organization also collects and reallocates funds to California and importer associations to benefit specific countries of origin in promoting their avocado brands to customers and consumers across the United States.