Avocado Demand Up: Is Mission Produce Set to Become a Global Leader?

As global demand for avocados continues to climb, Mission Produce, Inc. AVO is emerging as one of the most strategically positioned players in the industry. With consumption rising across North America, Europe and Asia, retailers and foodservice operators are increasingly prioritizing partners that can provide reliable, year-round supply, consistent quality and strong category management. The company’s decades-long investment in vertical integration, global sourcing, ripening infrastructure and data-driven distribution gives it a significant edge at a time when the world is consuming more avocados than ever before.

Mission Produce’s ability to scale while maintaining operational consistency sets it apart from many competitors in what remains a fragmented industry. In third-quarter fiscal 2025, the company increased volumes by 10% while delivering solid margins despite lower market prices, a testament to its sourcing flexibility and disciplined execution. With strong Peruvian production, improved Mexican supply and growing international demand, Mission Produce is demonstrating how its global network allows it to move fruit with precision, match supply to market needs and capture new growth opportunities across regions such as Europe and Asia.

Looking ahead, Mission Produce’s diversification into mangoes and blueberries further strengthens its position as a global produce player, but avocados remain its core catalyst. As consumption expands and industry supply fluctuates, scale, supply-chain expertise and multinational reach will determine who leads the next phase of growth. Mission Produce’s integrated model, international farming footprint and strategic investments suggest that the company is not just benefiting from rising demand; it is increasingly shaping the future of the global avocado market.

AVO Faces Stiff Competition From CTVA & DOLE

Corteva, Inc. CTVA and Dole plc DOLE continue to reinforce their competitive positions by pairing disciplined supply strategies with innovation and operational strength.

Corteva continues to strengthen its position in the global agricultural landscape by combining advanced seed innovations with sustainable crop protection solutions. The company’s disciplined approach to managing supply, costs and product mix allows it to navigate softer commodity markets while supporting growers facing climate and regulatory pressures. With a growing biologicals portfolio, expanding digital tools and a robust pipeline of next-generation seed traits, Corteva is reinforcing its role as a key enabler of resilient, efficient and sustainable food production worldwide.

Dole remains a major force in the fresh produce industry, leveraging its scale, vertically integrated operations and broad geographic footprint to maintain supply reliability and operational efficiency. The company is focusing on disciplined sourcing, logistics optimization and value-added offerings, such as fresh-cut and convenience products, to drive profitability amid inflationary and oversupply challenges. Through ongoing sustainability efforts, automation investments and strong retail partnerships, Dole continues to stabilize margins and strengthen its competitive position in a dynamic global produce market.

AVO’s Price Performance, Valuation & Estimates

Shares of Mission Produce have gained 8.3% in the last six months against the industry’s decline of 3.4%.

From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 30.05X, significantly above the industry’s average of 12.70X.

The Zacks Consensus Estimate for AVO’s fiscal 2025 and 2026 earnings suggests a year-over-year decline of 9.5% and 28.3%, respectively. The estimates for fiscal 2025 and 2026 earnings have been stable in the past 30 days.

AVO stock currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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