China's fruit industry, particularly blueberries, is experiencing growth despite broader economic challenges. The country has become the largest blueberry producer, surpassing the US, with cultivation in 26 out of 34 provinces, as reported by the USDA.
Imported blueberries, often considered of higher quality, have seen a 94.3% increase in imports from 2019 to 2022. Domestic demand has surged by 200% over five years, according to Zhiyan Consulting. Middle-class consumers, less sensitive to blueberry prices, continue to purchase despite economic shifts. Stone Wang of Agrovision noted, "Especially in the context of consumption downgrading, middle-class consumers are more inclined to seek a sense of ritual and satisfaction through premium fruits."
Xu Tianchen of the Economist Intelligence Unit highlighted that reduced housing expenses have increased disposable income, allowing consumers to indulge in simple pleasures like imported blueberries. Xu stated, "Consumers are adjusting their spending to the economic reality, but that doesn't mean they're tightening their belts across the board."
Despite a decline in foreign direct investment (FDI) in China, companies like Wang's are investing in local production, particularly in Yunnan province, known as the "fruit barn." The provincial government supports these initiatives, facilitating regulatory processes and providing resources.
Xu emphasized the importance of understanding consumer preferences in the evolving market, stating, "Investing in China is no longer a no-brainer for foreign enterprises, and companies must do their due diligence to understand what consumers truly want."
Source: myNEWS
