Westfalia: leading sustainable growth in Asia’s new avocado markets

Westfalia Fruit, a leading multinational supplier of avocados and a range of fresh vegetables, has capped off an exciting year of growth in Asia – in India and China, two of the fastest-growing avocado markets in the world, and Japan. The company also forecasts continued market growth across the region into the latter half of the decade.

Leading the market in India

Westfalia entered the Indian market in 2022, working with local partners to quickly establish itself, invest in local production and nurseries, and secure its position as the market leader. The market has grown tenfold in the last few years, with consumption increasing from 200 to 4,000 tonnes.

2023 marked the first year of commercial harvest of Indian-grown Hass avocados. In the coming years, more than 500 acres of Westfalia’s existing Hass plantations in Southern India will come into production. Globally, with the most diverse growing footprint, Westfalia can source from two production areas at any one time, including Tanzania, Kenya, Peru, Chile, and Australia, enabling consistent year-round availability for Indian consumers.

In December last year, Westfalia Fruit India imported the first commercial shipment of avocados from Australia after market access for Australian avocados was granted. Fruit from Western Australia fits nicely into the Indian avocado imports calendar with availability between November and March, complementing African import programs from April to November.

“We’re excited about Indian access for Australian avocados and being very close to securing Indian market access for our South African-produced fruit. We believe that the demand for Hass avocados and our exclusive and premium GEM variety will continue to grow due to strong per capita income growth and a rise in discretionary spending to 36% in 2020. Over the last year, we have seen a younger demographic embrace avocados into their diet, focusing on the more densely populated cities. With our investment in local farms, ripening rooms, and logistics, we anticipate the next few years to be pivotal in the developing Indian market as the appeal and use of avocados widens," says Zac Bard, business development executive at Westfalia Fruit.

Growth returns to China.

In China, the avocado market saw a downturn during pandemic lockdowns, but in 2023, this turned around, and the market there is now looking more optimistic. In August 2023, South Africa celebrated after its avocados were granted access to the Chinese market. As the leading exporter of avocados in South Africa, Westfalia Fruit represents half of all avocado exports and believes this significant development will shape the future of agriculture in the country.

“It’s a triumph for the avocado industry in South Africa, and it allows us to grow the market and local production in South Africa, particularly in the early and late season production areas. As an industry, this is an opportunity for us to invest and develop avocado production in South Africa, which will directly benefit rural communities, providing jobs, improving infrastructure, and overall investment in communities. As with India, Africa is very well geographically placed to supply China. As a globally integrated company, we are approaching sustainable and responsible opportunities there,” continued Bard.

Westfalia Avocados winning in Japan

Japan’s love for avocados began almost two decades ago when a Japanese chef working in California started adding fruit to sushi. This trend filtered back to the country with a stable avocado market ever since.

In 2023, Westfalia in Peru successfully increased imports to Japan by 58%, establishing Westfalia as a leading supplier to the market. Marketing initiatives sponsored by trade bodies have supported the awareness and consumption of avocados as part of Japanese cuisine. In addition, South Africa was recently granted avocado market access to Japan; as a globally integrated business, Westfalia’s teams are working together to supply the market 12 months of the year from complimentary growing areas.

“Africa, in particular, has been waiting for this opportunity to grow and expand, and I think in three to five years, across Asia, we will start seeing fantastic results. Avocados grown in Africa have a hugely positive social footprint in local communities; Asia is the future for Africa, and it will be a fantastic story to watch how these markets help the continent improve its livelihood in its remote and rural economies. Avocados grown in Africa and sold in Asia will improve many people’s lives,” Bard concluded.