Chinese Durian Demand Drives 400% Increase in Global Exports

tendata blogTrade Trends News

ten data blog07-09-2023

-Chinese demand for durians has led to a 400% increase in global durian demand, according to investment bank HSBC.

-The Regional Comprehensive Economic Partnership Free Trade Agreement (RCEP FTA) has accelerated durian trade by reducing taxes and simplifying customs procedures.

chinese durian export,chinese durian demand,durian export increase

China's demand for durians has increased global demand for the uniquely pungent tropical fruit by 400 percent, according to investment bank HSBC, as Southeast Asian exporters look to the regional trade deal to help sell more durians.

The Chinese market accounts for 91 percent of global durian demand, with the country importing $6 billion over the past two years, HSBC said in a report on Monday.

About 90 percent of durians shipped globally come from the 10 member countries of the Association of Southeast Asian Nations (ASEAN), up from 60 percent seven years ago, HSBC added.

"The Regional Comprehensive Economic Partnership (RCEP) gives everyone freer and equal access to the Chinese market."

Since coming into force, the 15-nation Regional Comprehensive Economic Partnership (RCEP) free trade agreement, which involves the ASEAN bloc as well as China, Japan, South Korea, Australia and New Zealand, has accelerated durian trade in most countries early last year through lower taxes and simplified customs procedures.

China's demand for durians boosts Southeast Asia's durian exports

China imported about four times as many fresh durians last year as it did in 2017, earning $4 billion, according to Chinese customs data.

The Philippines, which signed an agreement on phytosanitary standards for durian exports with President Xi Jinping during President Ferdinand Marcos Jr's state visit to Beijing in January, exported its first durians to China in April.

According to local media reports in June, the Malaysian Ministry of Agriculture is also seeking approval to export fresh durians to China, and frozen durians have already been accepted.

Consumers in mainland China and Hong Kong are "willing to pay a premium" for Thai durians because they have a longer shelf life than those in other parts of Southeast Asia, according to Sam Sin, director of development at S&F Produce Group in Hong Kong.

The expanding Chinese market provides a broad consumer base, allowing growers to increase production and, in turn, income.

"This upward trend is undoubtedly favorable for Thai durian growers as it provides them with unparalleled opportunities to expand their business."

Growers in the tropical island of Hainan Province have also begun harvesting China's first indigenous durian crop.

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