Following a downturn earlier in the year, Thailand's fresh durian shipments to China witnessed a resurgence in the second quarter. This recovery is linked to the seasonal harvest peak and Thailand's enduring reputation for quality. According to Chinese customs, durian imports from Thailand reached nearly US$2.67 billion, capturing a 75% share of China's total durian imports, a substantial increase from the 42.5% seen in the first quarter of 2024. Thailand's dominance in the Chinese market was evident, with a 68% share for the entirety of 2023. In contrast, Vietnam, Thailand's main competitor, accounted for the remainder of the shipments during this period, despite some Vietnamese durians being more affordable in China due to lower shipping costs facilitated by a land border. Nonetheless, concerns over the quality of Vietnamese durians led to the suspension of 33 export sources by Chinese authorities in June.
Analysts suggest that Vietnam's rapid expansion in durian exports since 2022 might have come at the cost of quality, challenging Thailand's near-monopoly. Thailand's advantage among Chinese consumers, attributed to its "first mover advantage," strong trade networks, and a seasonal peak in production, has been highlighted by experts. Lim Chin Khee, from the Durian Academy, emphasized the seasonal production peak and Thailand's established trade networks as key factors for the increased market share in Q2.
China remains the largest global durian consumer, with imports totalling 1.4 million tonnes in 2023. The fruit is highly regarded in China, often given as gifts during special occasions. Despite efforts to cultivate durians in Hainan, China's production is still nascent compared to Southeast Asia's established industry. Thailand faced challenges in May due to adverse weather conditions affecting the durian harvest, prompting governmental support for growers. Trade data from July showed Thai durian imports valued at US$363 million, with Vietnam at US$270 million, indicating Thailand's continued dominance in the market.
Source: scmp.com