The Avocado Economy: Why You’re Paying More

It's no secret that avocados are one of the best paleo foods you can get. Full of fat, the foundation of an amazing dessert recipe and with loads of alternative uses, you just can't beat an avocado.

The frustrating thing is how expensive they are. They literally grown on trees, after all.

Exactly how expensive?

Given that we've just come out of summer here in Australia, we grow them here, surely they should be cheap about now? In the Northern Hemisphere, they've presumably been imported, so you'd expect them to be at their most expensive about now?

So I compared prices of avocados available today, in Australia, the US, the UK, Canada and South Africa. Obviously prices will vary wildly in each country, but this should give an indication. You can save buying in bulk, but for the purposes of comparison, I took the single price. I converted currencies into Australian dollars at today's exchange rate, which could wildly fluctuate by the time you read this.

What did I find?

South Africa was by far the cheapest, working out at under $1 (Australian dollar) – hardly surprising given that they grow their own and have just come out of summer too.

Moving over to the Northern Hemisphere, Canada and the US are similarly priced, at $2.36 and $2.22 each. Surprisingly the UK is even cheaper at under $2 each. Though disclaimer – I've yet to have a good avocado there.

So where does that put Australia? Yes, you maybe guessed it – the most expensive avocado I found at almost $3 each. Three times the cost in South Africa.

I would love to understand why they are so expensive here, I fear the answer is as simple as “because they're prepared to pay it”. When I can buy a 1 kilo bag of carrots for $1, I can't see why avocados are so much more expensive. If you've got any thoughts or insight, I'd love to hear it in the comments.

Well, until prices come down, or I manage to grow an avocado tree in my garden, it's going to be carrots for dinner.

The Rise of the Avocado Economy

Avocados haven’t just become a staple in paleo households — they’ve become a global obsession. From smashed avo on toast to green smoothies and paleo-friendly brownies, this fruit is now a premium item on grocery lists and cafe menus worldwide. But what used to be a humble backyard fruit has become a highly commercialised and politicised commodity. The modern avocado economy is impacted by international trade agreements, water scarcity, weather fluctuations, transportation costs, and global demand. The result? A fruit that grows abundantly on trees can now command a price tag that rivals meat in some markets.

Seasonality and Supply Chains

Australia is lucky to have a climate well suited to avocado production, particularly in Queensland, Western Australia and northern New South Wales. But even with local growing regions, supply is not as straightforward as it seems. Avocados are notoriously fussy about when and how they ripen. If demand spikes unexpectedly or adverse weather conditions hit during the growing season, it can cause shortages that take months to resolve. Because they bruise easily and have a short shelf life once ripe, the logistics of storage and transportation play a big role in price too — even when buying local.

Export Incentives and Domestic Prices

One factor often overlooked in the avocado pricing conversation is the global export market. Australian avocados are increasingly shipped overseas, particularly to Asia, where demand is growing and consumers are willing to pay premium prices. For producers, exporting can be more profitable than selling domestically. As a result, more of the local harvest is redirected abroad, reducing the volume available to Australian consumers and driving up domestic prices. This economic decision benefits growers, but it’s frustrating when you’re standing at the checkout wondering why two avocados cost more than a whole roast chicken.

Water Usage and Environmental Impact

Another issue affecting the affordability of avocados is their water footprint. Growing a single avocado can require up to 70 litres of water, depending on the region and climate. In times of drought or with increased focus on sustainable farming practices, this high water usage is coming under scrutiny. In areas where water allocation is tightly controlled — such as parts of Western Australia — farmers may face additional costs or restrictions that further increase the price of production. Ultimately, those costs are passed on to the consumer.

Are Avocados Worth the Price?

From a nutritional standpoint, avocados remain one of the best-value health foods around. They’re rich in monounsaturated fats, fibre, potassium, B vitamins and antioxidants. For those following a paleo or keto approach, they offer a perfect macronutrient profile: high fat, moderate fibre, and zero sugar. They’re also incredibly versatile, used in everything from guacamole and salads to smoothies and desserts. But when prices surge close to $3 or more per fruit, it becomes harder to justify including them in your regular rotation.

Tips for Saving on Avocados

If you’re trying to stick to a paleo diet without blowing your food budget, there are a few ways to make avocados more affordable:

• Buy in bulk when in season: Prices usually drop in winter and spring. Purchase a few unripe ones and stagger their ripening using the paper bag method.
• Visit local markets: Farmers markets and roadside stalls sometimes sell avocados at far lower prices than supermarkets, especially if the produce is misshapen or slightly bruised.
• Use frozen avocado: Some supermarkets now sell frozen avocado chunks, which are ideal for smoothies and recipes where texture isn’t crucial. They’re usually cheaper per kilo and have a longer shelf life.
• Grow your own: If you’ve got the climate and space, an avocado tree is a long-term investment worth considering. Some dwarf varieties grow well in large pots.

Substituting When Necessary

Until prices become more stable or your homegrown supply kicks in, it might make sense to rotate your fats. Olive oil, coconut oil, tahini and nuts are all great alternatives that offer healthy fats and are often more affordable per serve. For creamy textures in dips or dressings, steamed zucchini or cauliflower with a splash of olive oil can sometimes fill the gap. Mashed sweet potato or pumpkin also makes a good avocado substitute in baking recipes, depending on the texture and taste you’re aiming for.

The Future of Avocado Pricing

Unfortunately, there’s no clear sign that avocado prices will decrease significantly any time soon. With global demand continuing to rise, and climate conditions becoming less predictable, they’re likely to remain a premium item for the foreseeable future. However, consumer pressure for more local, accessible produce and increased domestic production may eventually help balance the scales. In the meantime, being strategic with your purchases — and flexible with your recipes — will help you enjoy the benefits of avocados without compromising your budget.

What’s the Verdict?

Avocados are undoubtedly a paleo superstar food — but in Australia, they’re not the budget-friendly choice we might hope for. Whether it’s due to export priorities, water limitations, or just supply and demand, the avocado economy is far more complex than the fruit’s humble appearance suggests. Until prices ease or your backyard tree starts bearing fruit, it might be time to rethink how often avocados appear in your weekly meal plan. And if all else fails, there’s always a trusty bag of carrots waiting to be turned into something delicious.