According to BBC, California production is estimated to be down about 44 percent this year, partly due to a heatwave. Severe flooding hitting the southern regions of Peru has also downgraded this year's crop forecast.
"You have increased consumption in China and other areas of the world, like Europe," Roland Fumasi, an analyst at Rabobank in Fresno, California, told Bloomberg. "They're pulling a lot more of the Mexican crop, so there's less available for the U.S."
Big U.S. restaurant chains like Subway and Chipotle have been affected by the high demand and price increase, with Subway no longer offering fresh avocado on their sandwiches and Chipotle saying "it squeezed its bottom line" trying to provide its tasty, trendy guacamole, BBC reported.
Avocado prices will likely "remain at relatively elevated levels” through summer, Fumasi said.
Read more about the avocado food trend and its skyrocketing prices at Bloomberg.com.