The avocado market in India is on an upward trajectory, reflecting a surge in consumer demand driven by greater health consciousness among urban populations. According to Ashish Banerjee, the commercial and market development head for Agrify Fresh, "The Indian avocado market is growing steadily, driven by rising health consciousness and demand from urban consumers. While still niche compared to global markets, retail chains, quick-service restaurants such as Subway, Starbucks, and gourmet stores are key demand drivers."
As of March 2025, the demand for avocados has increased by around 20 to 25 percent compared to the previous year, signaling a strong shift in consumer preferences. However, despite this growth, several challenges remain, including price sensitivity and limited consumer awareness outside of major metropolitan areas.
The avocado varieties in demand primarily come from two origins: Kenya and Tanzania. Banerjee highlighted that, "Looking at the origins of avocadoes, I feel like there are two origins most popular among the consumers in India. First off is the avocado from Kenya, which is preferred for its taste and smaller, more affordable sizes. However, Tanzania is emerging as a key player in this market, despite facing strong competition on price consistency."
This evolving scenario indicates that while Kenyan avocados dominate in flavor and consumer preference, Tanzanian varieties are carving out their niche by virtue of competitive pricing and sustained quality.
Currently, avocados from Tanzania are being positioned as an upcoming choice in the Indian market, particularly as recent trends have shown a substantial oversupply leading to price reductions. Banerjee explains, "Avocados from Tanzania are very much up and coming in the Indian market. These avocados are priced competitively, have a good shelf life, and supply is more reliable. However, with the recent oversupply of avocados from Tanzania, the price has dropped significantly, as there were lots of arrivals during a time when demand was rather sluggish. Prices might stabilize by mid-April if arrivals slow down or demand picks up during the summer season."
The dynamics of the avocado market stress the importance of logistics. Banerjee states the differences in how avocados reach consumers: "Logistics matter for the import of avocados. For example, the air-shipped avocados from Kenya cater to buyers that focus on the freshness of the product. Meanwhile, avocados transported via sea, such as the avocados from Peru and Tanzania, suit the cost-conscious markets."
This differentiation in transportation underscores how consumer choices are influenced not only by taste but also by availability and pricing strategies in various forms of supermarket and food service settings.
Moreover, the favorable pricing of Tanzanian avocados positions them as a value option for the health-conscious consumer, especially when marketed with their unique qualities in mind. Banerjee mentions, "For the consumers in India, the Tanzanian avocados are often seen as a value option compared to the premium avocados that are imported from Kenya. That being said, the Tanzanian avocados can be marketed in India with its unique qualities in mind, such as its buttery texture, to differentiate itself from the Kenyan avocado."
While the overall market for avocados in India is growing, it remains necessary to identify key barriers to further development. Urban consumers are increasingly looking for healthier options, which supports the steady rise in demand for avocados. The challenge, however, appears to be rooted in educating potential consumers about the availability and benefits of these fruits beyond the metropolitan areas.
Banerjee's insights suggest that with increasing retail availability and foodservice adoption, the avocado landscape in India can expect continued growth.
In exploring further developments, states like Kerala are testing the waters with small-scale avocado farming projects. Banerjee concludes that while local farming could provide future opportunities, imports will continue to reign supreme for the foreseeable future. "Currently, Indian states like Kerala are experimenting with small-scale avocado farming, but imports will dominate for years to come," he notes.
The growth of the avocado market in India reflects changing consumer preferences and health trends. As companies navigate challenges posed by price and supply consistency, the key to success will lie in education and marketing. With a growing awareness, even more consumers may embrace this nutritious fruit, helping the avocado evolve from a niche luxury into a commonality in households across the nation.
