China's growing appetite for durian spurs market innovations

China's middle class consumers have been tightening their purse strings, but their appetite for durian — pungent, spiky fruit mostly imported from Southeast Asia — continues to grow.

In Chinese cities, durians have transcended their status as a fruit to become a fashionable choice for young consumers. The catering sector has responded with "everything can be + durian" promotions that have spawned a proliferation of durian-themed restaurants with offerings ranging from drinks and desserts to hotpots and buffets.

On Douyin, the Chinese version of TikTok, topics such as "durian barbecue" and "durian buffet" have amassed more than 1.24 billion views.

One brand in Guangdong province that specializes in durian chicken hotpots has sold more than 2.22 million of them, and its durian burger has gained widespread attention on social media.

A durian buffet restaurant in Shenzhen, Guangdong, went viral online recently when it offered diners their choice of more than 200 dishes featuring Malaysian durian — including porridge, pancakes and cakes — for 199 yuan ($27.39) a head.

The Chinese market consumes over 90 percent of the world's durian supply, with imports surging from 430,000 tonnes, worth $1.1 billion, in 2018 to 1.38 million tonnes, valued at $6.2 billion, from January to September this year, according to official data.

Durians are "sweet and greasy and easy to fill up on, and it's hard to eat 199 yuan worth, but my friends and I are eager to try," said Su Yuru, a white-collar worker in Shenzhen.

"I often buy a durian to share with my family on weekends, usually priced at about 150 yuan, and durian is also a regular at local companies' afternoon teas and annual parties for their employees."

Despite the surge in imports, less than one in 100 Chinese have tasted durian, and the enormous market potential is driving more Southeast Asian countries to jump into the competition, according to a report by the Beijing-based consultancy Guanyan Tianxia.

Most fresh durians are imported from Thailand and Vietnam. China has also given the green light to imports from Malaysia and the Philippines, though volumes are relatively small so far, while growers in Laos and Indonesia are now eyeing the lucrative Chinese market.

Imports from Thailand, which started in 2003, dominated the market for years, but the first imports of Vietnamese durians into China in September 2022 began to change that.

Thailand's market share dropped from 95 percent in 2022 to 60 percent in the first nine months of this year, while Vietnam's share grew from 32 percent in last year to 39 percent.

Vietnam surpassed Thailand as China's top source of durians in the third quarter of this year and sustained its lead in November, according to customs data.

In the third quarter of the year, Vietnam exported $1.342 billion worth of durians to China, surpassing Thailand's $878.95 million. In October, it exported $332.79 million worth, compared with Thailand's $132.37 million.

In November, Vietnam exported $82.85 million worth to China, compared with Thailand's $65.21 million.

The Vietnam Fruit and Vegetable Association — Vinafruit — has predicted the value of the country's durian exports will reach $4 billion next year, with 90 per cent exported to China, according to news outlet vietnamplus.vn.

China imported 1.38 million tonnes of fresh durians valued at $6.2 billion in the first three quarters of this year, according to customs data.

These companies are critical in managing the supply chain, from transportation to customs clearance

Gary Lau, Hong Kong Association of Freight Forwarding And Logistics

Some Chinese agricultural trade consortiums have invested in Vietnam's durian production, according to Ding Wei, chairman of the China Business Association's branch in Ho Chi Minh City, Vietnam's main financial centre.

He said most are privately run, with many specialising in logistics and packaging - providing cold chain storage and inspection services to facilitate durian shipments to China.

Gary Lau, chairman of the Hong Kong Association of Freight Forwarding And Logistics, said: "These companies are critical in managing the supply chain, from transportation to customs clearance. They often collaborate with local exporters to ensure compliance with China's import regulations, which has become increasingly important given the growing demand for fresh durians in the Chinese market."

However, Ding cautioned that profits are not guaranteed due to competition from Thailand and Malaysia. "The opportunities are huge, but we're not always seeing profits yet," he said.

Vietnam produces nearly 1.2 million tonnes of durian a year from the 154,000 hectares under cultivation across the country, but that production is expected to grow by 15 per cent per year.

The Philippines and Malaysia are accelerating efforts to tap into the Chinese market. In April 2023, 18 tonnes of Philippine durians arrived in southern China's Guangxi Zhuang autonomous region via air freight.

Philippine durian exports to China rose from 3,763 tonnes for all of last year to 6,260 tonnes in the first three quarters of this year. Malaysia began exporting fresh durians to China in June and had shipped 215 tonnes worth $3.65 million by September.

Read the full story at SCMP.