Mission Produce, Inc. (AVO): PESTLE Analysis [Nov-2025 Updated]

You're looking for a sharp, actionable PESTLE breakdown of Mission Produce, Inc. (AVO)-the kind of analysis that cuts through the noise and gets to the core risks and opportunities. As a seasoned analyst, I see a company navigating a high-growth, but increasingly volatile, global supply chain. The key takeaway is simple: Mission Produce's near-term success hinges on managing geopolitical supply risks and capitalizing on premium ripening technology, especially as their estimated 2025 revenue hits around $1.25 billion.

Political Factors: Geopolitical Supply Risk

You need to understand that the stability of the US-Mexico-Canada Agreement (USMCA) is the bedrock for Mission Produce, Inc., underpinning the flow of over 80% of US avocado supply. But that stability is challenged by rising political instability and cartel influence in key Mexican growing regions, which translates directly into higher sourcing costs and supply interruptions. Also, as the company pushes into Asia, shifting import tariffs and phytosanitary regulations-rules about plant health-become friction points that slow down market entry and raise the cost of goods sold. To be fair, government-mandated labor and wage policies in Peru and Colombia are also affecting farm costs, so this isn't just a Mexico issue. Geopolitics is the single biggest supply risk for Mission Produce.

Economic Factors: Margin Compression from Inflation

The global avocado price volatility is a constant, but we project a slight stabilization in late 2025 after a mid-year spike, which helps with forward planning. Still, you can't ignore the inflationary pressure on cold chain logistics, freight, and packaging. Here's the quick math: a 10% increase in freight costs on a perishable product with a short shelf-life can wipe out a significant chunk of margin. On the plus side, strong US consumer spending on fresh produce supports premium avocado pricing, helping to offset some of these costs. Currency fluctuations, particularly the Mexican Peso (MXN) and Peruvian Sol (PEN), are also impacting the cost of goods sold. Inflation is eating into their cold-chain margins.

Sociological Factors: The Avocado as a Staple

Honestly, the sustained high per-capita avocado consumption in the US is a massive tailwind, projected to exceed 10 pounds annually. This isn't a fad anymore; it's a staple. Plus, consumer demand for ethically and sustainably sourced produce is growing, and this is a defintely price-of-entry factor, not a premium feature. Health and wellness trends globally continue to drive demand for 'superfoods' like avocados. The primary consumption drivers are demographic shifts, with younger consumers (Millennials, Gen Z) cementing the product's long-term market position. The avocado isn't a trend anymore; it's a staple.

Technological Factors: Competitive Edge in Ripening

Mission Produce's proprietary 'Mission Control' ripening technology offers a significant competitive edge in shelf-life extension, allowing them to command premium pricing from retailers. They are also making significant investment in advanced cold-chain monitoring using Internet of Things (IoT) sensors to reduce spoilage, which is currently at an estimated $\sim$5% loss rate. Cutting that spoilage even by one percentage point is a huge margin win. Also, the adoption of AgTech-drones and soil sensors-is helping to optimize water and fertilizer use in their owned farms. Anyway, the shift toward e-commerce and direct-to-consumer logistics requires faster, smaller-batch fulfillment, which their tech needs to support. Technology is their best defense against spoilage and cost.

Legal Factors: Rising Compliance Complexity

The company operates under strict US Food and Drug Administration (FDA) and USDA food safety and import standards, which are non-negotiable and costly to maintain. Beyond the US, complex international labor laws and compliance requirements in sourcing countries add layers of administrative and operational expense. A key long-term risk is the legal battle over water rights and usage permits in drought-prone regions like California and Chile, which could limit future expansion. Also, there is rising antitrust scrutiny over market concentration in the ripened avocado segment, which is where they have a competitive advantage. Compliance costs are rising faster than they can pass them on.

Environmental Factors: Water Scarcity and Climate Volatility

Climate change impact, specifically unpredictable weather patterns, is the ultimate long-term threat, reducing optimal growing seasons and yield. You can't plant your way out of a drought. There is intense scrutiny over the water footprint, especially for Peruvian and Chilean operations, and this is a major reputational risk that can affect consumer choice. The corporate commitment to reducing Scope 1 and 2 carbon emissions across the global supply chain is a non-financial risk that institutional investors now track closely. Plus, the pressure for sustainable packaging alternatives to single-use plastics is increasing, requiring capital investment in new materials. Water scarcity is the ultimate long-term threat to supply.

Mission Produce, Inc. (AVO) - PESTLE Analysis: Political factors

US-Mexico-Canada Agreement (USMCA) stability is crucial for 80%+ of US supply.

The stability of the US-Mexico-Canada Agreement (USMCA) is the single biggest political risk factor for Mission Produce, Inc. because the US market relies heavily on Mexican supply. Mexico provides approximately 80% to 90% of all avocados consumed in the US.

In early 2025, this reliance was tested when the US announced a potential 25% tariff on Mexican agricultural imports, citing trade imbalances and border issues. This political move immediately disrupted the supply chain, causing a 20% drop in Mexican avocado shipments year-over-year in early 2025 and driving US avocado prices to a peak of $4.88/kg before Super Bowl LIX. The USMCA framework is meant to provide duty-free access, so any political action that overrides it creates immediate, significant cost volatility for a company like Mission Produce.

Increased political instability and cartel influence in Mexican growing regions raises sourcing risk.

Mission Produce faces a critical sourcing risk due to the escalating political instability and criminal influence in key Mexican growing states like Michoacán and Jalisco. Drug cartels have increasingly dominated the lucrative avocado trade, using extortion and violence to control the supply chain-a phenomenon sometimes called 'blood avocados.'

This criminal predation is deeply embedded: official sources indicate that approximately 80% of avocado orchards in Michoacán were established illegally, often involving deforestation and corruption. The violence is a clear risk to operations, with homicides in Michoacán reaching 54 per 100,000 people between 2016 and 2021 as the avocado market boomed. You simply cannot ignore that level of operational insecurity.

Shifting import tariffs and phytosanitary regulations in emerging markets like Asia.

As Mission Produce diversifies its markets, particularly into Asia, it must navigate a complex web of non-tariff trade barriers like phytosanitary regulations (rules to prevent the spread of pests and diseases). This is a constant, defintely non-negotiable cost of doing business.

For example, new phytosanitary measures are being implemented in 2025 for avocado exports to Japan and other Asian markets, specifically to mitigate the risk of pests such as the fruit borer (Stenoma catenifer) and the Mediterranean fruit fly (Ceratitis capitata). Furthermore, while Asia is a major growth area, market dynamics are volatile; China's fresh avocado imports, for instance, saw a nearly 25% drop in 2024, altering local pricing and demand.

Here's a quick look at the political-regulatory hurdles in key Asian markets:

Government-mandated labor and wage policies in Peru and Colombia affecting farm costs.

Labor policy changes in Mission Produce's South American farming operations, particularly in Peru and Colombia, directly translate into higher operating expenses. The political environment in these countries is pushing for greater worker protections and higher wages, a trend that will continue through the 2025 fiscal year.

In Colombia, the government set the minimum monthly wage for 2025 at COP 1,423,500, which represents a 9.50% increase over the 2024 rate. Plus, the maximum working week is being reduced to 44 hours starting July 15, 2025, which will directly increase overtime costs for maintaining a consistent harvest schedule. This is a clear, quantifiable jump in farm labor expense. Mission Produce's Peruvian operations are also subject to local labor laws, and while they are forecasting a strong harvest of 100 million to 110 million pounds of exportable production from owned farms in fiscal year 2025, this volume must be managed against rising labor costs.

Mission Produce, Inc. (AVO) - PESTLE Analysis: Economic factors

Global Avocado Price Volatility, Projected to Stabilize Slightly in Late 2025 After a Mid-Year Spike

The core economic factor for Mission Produce is the extreme volatility in global avocado pricing. We saw a significant mid-year spike in the first half of fiscal 2025, largely due to supply constraints from Mexico where heat and drought limited fruit development. This led to Mission Produce reporting record second-quarter revenue of $380.3 million, with the average selling price rising a substantial 26% year-over-year to $2.00 per pound.

However, that price surge is expected to temper in the latter half of the year. The 2025/2026 season is projected to bring more normal volumes from Mexico, plus California is harvesting its largest crop since 2020. This increased supply, especially the ramp-up of Peruvian production, is what Mission Produce is counting on to meet demand, but it also naturally applies downward pressure on the high wholesale prices seen earlier in the year. The market is defintely sensitive to even minor shifts in supply/demand balance.

Inflationary Pressure on Cold Chain Logistics, Freight, and Packaging Costs

While avocado prices soared, the cost side of the equation was also under intense pressure from persistent, broad-based inflation across the supply chain, which compressed profit margins. Total U.S. logistics costs hit an estimated $2.6 trillion in 2025, now stabilizing at a higher ratio of nearly 9% of GDP.

The cost of moving temperature-sensitive produce like avocados is particularly high. Ocean freight saw the most dramatic surge, with water transport costs rising an astounding 93.1% year-over-year due to geopolitical rerouting and Red Sea disruptions. Even domestic warehousing rates rose 7.0% year-over-year as of February 2025. Mission Produce must continually optimize its cold chain (the specialized movement of temperature sensitive goods) to prevent product loss, which can be as high as 20% of products damaged in transit across the industry.

Here's a quick snapshot of the cost pressures in the logistics segment:

Strong US Consumer Spending on Fresh Produce, Supporting Premium Avocado Pricing

The good news is that Mission Produce operates in a highly resilient consumer category. Despite broader economic uncertainty, fresh produce emerged as the top-ranked category in consumer resilience for 2025, according to a SensaPay study, earning a high score of 34.7. Consumers are not cutting back here.

This strong demand underpins the company's ability to charge premium prices. Avocado purchases remained strong, with 50% of consumers reporting they bought avocados in the past 12 months. The trend is most pronounced among younger, health-conscious shoppers:

• 78% of Gen Z consumers are eating more fresh produce than a year ago.
• 75% of millennial consumers are eating more fresh produce than a year ago.

This commitment to fresh, healthy food means that even when prices are high, demand remains relatively inelastic-a crucial advantage for a single-product focused distributor like Mission Produce.

Currency Fluctuations, Particularly the Mexican Peso (MXN) and Peruvian Sol (PEN), Impacting Cost of Goods Sold

As a global sourcing and distribution company, Mission Produce faces direct exposure to currency fluctuations, primarily the Mexican Peso (MXN) and the Peruvian Sol (PEN). The company denominates a significant portion of its avocado purchases in the Mexican Peso and its growing/harvesting costs in Peruvian Soles.

The company's margin exposure is generally short-term because its sales price commitments are typically limited to less than one month, allowing it to adjust pricing to reflect changes in the cost of goods sold. In Q1 2025, the company actually reported a positive impact, with net income growth partially driven by foreign currency transaction gains associated with a strengthening U.S. dollar against the prior year. This USD strength effectively lowers the cost of the fruit purchased in MXN or PEN, but the risk remains that a reversal in this trend could quickly erode margins.

Mission Produce, Inc. (AVO) - PESTLE Analysis: Social factors

Sustained high per-capita avocado consumption in the US, projected to exceed 10 pounds annually.

You are operating in a market where the US appetite for avocados is not just robust, it's a structural demand driver. Per-capita consumption in the United States, a proxy for availability, has already reached significant levels, measured at 8.43 pounds in 2024, and has recently surpassed 9 pounds per person annually.

This is a staggering increase, representing a 260% rise over the past two decades. For Mission Produce, this means the market is already primed for the next milestone. The trajectory indicates US consumption is on track to exceed the 10 pounds per-capita mark in the near-term, driven by consistent consumer enthusiasm and promotional efforts. This strong foundation provides a resilient base for volume growth, even amid price volatility.

Growing consumer demand for ethically and sustainably sourced produce.

The social contract for food producers has shifted; consumers in 2025 are increasingly conscious of their food's environmental and social footprint. Sustainable and ethically sourced avocados are a priority for many buyers, and this trend is creating a two-tiered market.

Mission Produce's existing commitment to sustainability is a key strength that directly appeals to this segment. Honestly, if you can credibly demonstrate water efficiency and fair labor practices, you can command a premium price. This focus is a clear opportunity, as profit margins for sustainable avocado farms could reach upwards of 25% by 2030. That's a powerful incentive for continued investment in green farming techniques.

Health and wellness trends driving demand for 'superfoods' like avocados globally.

Avocados are firmly established as a 'superfood,' and this health-conscious trend is the engine behind the industry's massive growth. Over 70% of United States shoppers identify avocados as nutrient-rich, which translates to resilient demand even when supply swings cause price increases.

Here's the quick math: The global avocado market is valued at approximately $19.56 billion in 2025 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.3% through 2030. Plus, the significant shift toward plant-based diets is a tailwind, with roughly 30% of consumers identifying as flexitarians in 2025. This versatility, from avocado oil to toast, keeps the product relevant across all food categories.

Demographic shifts, with younger consumers (Millennials, Gen Z) as the primary consumption drivers.

The long-term outlook for Mission Produce is secured by the purchasing habits of younger generations. Millennials and Gen Z are not just occasional buyers; they are the primary consumption drivers who have integrated avocados into their daily routines.

Gen Z, in particular, is a big and influential cohort, estimated to be worth $260 million more in annual avocado sales. Nearly half of Gen Z households are purchasing avocados, with their household penetration rate at 49%. This is defintely a key factor, as these younger buyers will carry the consumption trend for the next few decades, ensuring the market remains buoyant.

Actionable Insight: Focus marketing and product innovation on convenience and value packs, as Gen Z favors these formats, and club and mass stores captured 17% of avocado spend in this segment.

Mission Produce, Inc. (AVO) - PESTLE Analysis: Technological factors

Proprietary 'Mission Control' ripening technology offers a competitive edge in shelf-life extension.

You know that in fresh produce, shelf-life is everything. Mission Produce's proprietary 'Mission Control' ripening technology is a major competitive moat, giving them a distinct advantage over competitors who rely on standard ripening systems.

This isn't just a basic ripening room; it's a specialized, atmosphere-controlled process that uses a data-driven approach. Commercial trials have shown this system delivers up to a 38% improvement in quality consistency compared to conventional methods. Plus, it can accelerate fruit ripening by as much as 20% when needed, which is critical for managing inventory and responding to sudden retail demand spikes.

This technology is a core component of their global distribution network, including the state-of-the-art facility in the UK, which acts as a gateway to the European market. It lets them promise a predictable, ready-to-eat product, which drives repeat purchases for retailers.

Significant investment in advanced cold-chain monitoring (IoT sensors) to reduce spoilage.

The entire avocado supply chain is a race against time, so cold-chain integrity is non-negotiable. Mission Produce is addressing this head-on by integrating advanced cold-chain monitoring, which essentially means using Internet of Things (IoT) sensors and digital tools to track conditions in real-time.

Their full-year fiscal 2025 guidance for total capital expenditures is expected to be in the range of $50 million to $55 million, with a significant portion of the year-to-date CapEx of $39.8 million (as of Q3 2025) directed towards farming-related investments and new infrastructure like the pack house in Guatemala. This investment fuels the continuous improvement of their cold chain.

This precision monitoring, combined with practices like in-field hydrocooling in Peru, is designed to drastically cut down on waste. For context, in a prior fiscal year, the company applied its shelf-life extension technology to 34.8 million pounds of avocados specifically to combat food waste, illustrating the scale of the problem and their solution.

Adoption of AgTech (drones, soil sensors) to optimize water and fertilizer use in owned farms.

The shift to precision agriculture (AgTech) is an operational necessity, especially given the water intensity of avocado farming. Mission Produce, leveraging its vertical integration, is applying technology directly in the field to optimize resource use.

They own and manage over 4,000 hectares of avocados and mangos in Peru alone, and this scale makes AgTech investments highly impactful. While specific drone fleet numbers are proprietary, their focus on vertical integration means they are adopting tools like soil sensors, weather monitoring, and advanced crop imagery to inform real-time decisions on irrigation and fertilization.

This data-driven approach is critical for minimizing input costs and demonstrating sustainability, which is increasingly a requirement for major US and European retailers. It's all about getting the most yield from every drop of water and every pound of fertilizer.

E-commerce and direct-to-consumer logistics requiring faster, smaller-batch fulfillment.

The rise of online grocery and meal kits means the old model of shipping pallets to a single distribution center is evolving. The logistics challenge now is faster, more granular fulfillment.

Mission Produce is well-positioned with its global network of 19 strategically located distribution and ripening centers. This infrastructure allows them to offer value-added services that support e-commerce and modern retail models:

• Custom packing and bagging, including their successful retail-ready mango bags.
• Just-in-time ripening programs tailored to a retailer's specific sales velocity.
• Logistical management that supports smaller, more frequent deliveries to regional hubs.

This shift to value-added logistics is what allows partners to push products like their ready-to-eat avocados directly into the consumer's basket with confidence. The technology here is less about a single tool and more about the interconnected, data-optimized network.

Mission Produce, Inc. (AVO) - PESTLE Analysis: Legal factors

You're looking at Mission Produce, Inc. (AVO)'s external legal landscape, and honestly, the biggest legal risks aren't about avoiding lawsuits; they're about managing compliance costs and navigating geopolitical trade and environmental regulations that shift your cost of goods sold. The core takeaway here is that rising scrutiny on labor and water rights in key sourcing countries, plus tighter US import standards, will defintely increase operational complexity and compliance spend in fiscal year 2025.

Strict US Food and Drug Administration (FDA) and USDA food safety and import standards

The regulatory environment for fresh produce imports is getting more granular, not less. The USDA's Animal and Plant Health Inspection Service (APHIS) is constantly updating phytosanitary requirements, and these changes can immediately disrupt supply chains. For example, in April 2025, APHIS issued Federal Order DA-2025-15, updating import requirements for fresh Hass avocado fruit from Guatemala to specifically address the quarantine pest Copturus aguacatae (stem weevil). This forces a systems approach, requiring the National Plant Protection Organization of Guatemala to adhere to a joint operational workplan and establish pest-free places of production. This is a clear, near-term cost and compliance hurdle for sourcing.

Also, the integrity of the inspection process itself is under scrutiny. The California Avocado Commission called on the USDA in February 2025 to re-establish its direct inspection systems in Mexico, following reports that the USDA had turned over orchard inspections to Mexico in late 2024 due to security concerns. This shift creates a legal and reputational risk, as any perceived lapse in inspection quality could lead to a temporary border closure, which would instantly spike US avocado prices and crush supply volumes.

• Key 2025 US Regulatory Mandates:
• APHIS Federal Order DA-2025-15 (April 2025) on Guatemala imports.
• US importers must ensure all shipments over 55 lbs. meet USDA Grade No. 2 standards.
• Compliance with the Food Safety Modernization Act (FSMA) Produce Safety Rule for pre-harvest agricultural water took effect for large farms on April 7, 2025.

Complex international labor laws and compliance requirements in sourcing countries

Labor compliance is no longer just an ethical issue; it's a legal one that directly affects market access, especially in Mexico and Peru, which are crucial to Mission Produce, Inc. (AVO)'s global supply. In February 2025, the Mexican government launched a new program to ensure all agricultural exports, starting with the avocado supply chain, comply with labor and environmental regulations. This means mandatory adherence to the Federal Labor Law and the Social Security Law, which includes ensuring workers have full access to social security benefits (IMSS). For a company like Mission Produce, Inc. (AVO), which is the largest exporter of avocados from Mexico, this translates directly to higher labor costs and increased audit risk.

In Peru, where Mission Produce, Inc. (AVO) is vertically integrated with over 10,000 acres of avocados, the New Agrarian Promotion Law (passed in September 2025) is creating legal tension. While the law aims to boost exports, agricultural unions argue it 'disproportionately favours large agro-exporting groups' which account for over 60% of export value, potentially sparking social unrest. The prior labor law changes already introduced a special agricultural work bonus amounting to 30% of the minimum wage, a cost that is now baked into the Peruvian supply chain. You must budget for these rising formal labor costs and the risk of supply disruption due to worker protests.

Water rights and usage permits in drought-prone regions like California and Chile

Water access is the single most material legal risk to avocado production in drought-prone regions. In California, new regulations, 'Making Conservation a California Way of Life,' took effect on January 1, 2025, requiring suppliers to develop water budgets that favor household users over large agricultural operations. This will inevitably lead to tighter usage permits and higher costs for Mission Produce, Inc. (AVO)'s domestic operations.

The situation in Chile is legally unique and fraught with social risk. Chile's 1981 Water Code privatized water rights, treating water as a commodity. This legal structure allows large agro-exporters to concentrate water rights, even in drought-stricken areas like the Petorca province, where the avocado industry is accused of concentrating about 80% of the drinking water. The agro-export sector contributed $10.09 billion to Chile's GDP in 2023, but the legal framework encourages social and environmental litigation risk, including accusations of illegal water diversion, which can lead to reputational damage and legal challenges against the Chilean supply chain. This is a ticking time bomb.

Antitrust scrutiny over market concentration in the ripened avocado segment

While there is no public, direct antitrust investigation against Mission Produce, Inc. (AVO) in 2025, the company's dominant position in the 'ripe' segment makes it a prime candidate for future scrutiny, especially given the current bipartisan political focus on consolidation across the US agricultural sector. Mission Produce, Inc. (AVO) is a world leader in the Hass avocado business, leveraging its vertical integration and proprietary ripening technology to maintain a competitive edge.

Here's the quick math: The company's forward price-to-earnings (P/E) ratio stood at approximately 28.09X as of October 2025, significantly higher than the industry average of 13.03X. This premium valuation is partly tied to its market power in the value-added, ripened segment. Any anti-competitive practices-real or perceived-in this concentrated segment would attract the attention of the Federal Trade Commission (FTC) or the Department of Justice (DOJ). The legal risk is in the perception of a dominant player controlling a critical part of the supply chain (ripening) that drives consumption and premium pricing.

You need to ensure your pricing and distribution strategies for your ripe avocado programs, which drive category growth, are defintely defensible against monopolization claims.

Finance: Draft a 13-week cash view by Friday, modeling a 15% increase in international labor compliance costs and a 10% reduction in California avocado volume due to water restrictions.

Mission Produce, Inc. (AVO) - PESTLE Analysis: Environmental factors

Climate change impact, specifically unpredictable weather patterns, reducing optimal growing seasons and yield

You're operating in a global agricultural system where climate volatility is now a core business risk, not a peripheral one. For Mission Produce, unpredictable weather, particularly in key sourcing regions, directly impacts supply volume and, subsequently, pricing power. The clearest recent example of this risk is the comparison between the 2024 and 2025 Peruvian harvests.

In the 2024 harvest season, weather-related events severely constrained production, limiting exportable avocado production from Mission Produce's owned Peruvian farms to just 43 million pounds. That's a massive supply shock. For the 2025 harvest season, however, the outlook has normalized, with exportable production expected to range between 100 million to 110 million pounds. This 132% to 156% swing in volume year-over-year shows the extreme financial sensitivity to climate variability. The good news is the 2025 rebound is strong, but the risk of a repeat shock is defintely still there.

Intense scrutiny over water footprint, especially for Peruvian and Chilean operations

The avocado industry faces constant public scrutiny over its water usage, and as a global leader, Mission Produce is under a magnifying glass, particularly in water-stressed regions like Peru. Your operational efficiency in water management is a critical factor for social license to operate (SLO) and long-term sustainability. The company's strategy focuses on precision agriculture (drip irrigation, soil moisture monitoring) to keep water usage per avocado well below the industry average.

To be fair, this is a significant competitive advantage in a resource-scarce environment. Here's the quick math on their core advantage:

What this estimate hides is the absolute volume of water used, which remains a negative impact category under the umbrella of Scarce Natural Resources. Still, the relative efficiency is a strong defense against activist pressure.

Corporate commitment to reducing Scope 1 and 2 carbon emissions across the global supply chain

Minimizing Scope 1 (direct) and Scope 2 (indirect from purchased energy) emissions is a clear trend, driven by investor and regulatory pressure. Mission Produce's strategy centers on energy efficiency and transitioning to renewable sources at its facilities. They track emissions using the Greenhouse Gas (GHG) Protocol.

The company has made measurable progress in its facilities:

• Decreased total global Scope 1 and 2 emissions by 15.8% in 2020 compared to 2019.
• Saw a substantial decrease in Scope 1 emissions in 2023, primarily by improving preventative maintenance on refrigeration systems to reduce refrigerant recharges.
• Invested in solar power, with the United Kingdom Forward Distribution Center (FDC) generating 369,730 kilowatt hours (kWh) and the California packhouse generating 1,508,753 kilowatt hours of clean energy in fiscal year 2023.

This focus on facility-level efficiency and solar deployment is a clear, actionable path to managing Scope 2 emissions, which is a near-term win. The greater challenge, of course, is the much larger and harder-to-control Scope 3 emissions from global shipping and distribution.

Increased pressure for sustainable packaging alternatives to single-use plastics

Consumer and retail partner demand for less plastic is intense, making sustainable packaging a non-negotiable factor for market access. Mission Produce addressed this by setting a clear, near-term goal in 2020 to purchase at least 50% or more reduced plastic film for its bagging configurations by the end of fiscal year 2025.

The company actually hit this target early. By fiscal year 2023, they reported that 52.81% of the plastic film purchased for use in production utilized reduced plastic film. This success in material reduction is a strong indicator of their operational commitment to environmental goals. The next step will be moving beyond reduced plastic to fully compostable or recyclable alternatives across their entire global product line.