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China’s durian demand lifts global sales by 400%, Southeast Asian exporters seek to reap rewards from RCEP trade deal


China’s appetite for durian has increased global demand for the uniquely pungent tropical fruit by 400 per cent, with Southeast Asian exporters looking to a regional trade deal for help to sell even more, according to investment bank HSBC.

The Chinese market makes up 91 per cent of the world’s demand for durian, with China having imported US$6 billion in the past two years, HSBC said in a report on Monday.

And around 90 per cent of the durians shipped worldwide originate in the 10-member Association of Southeast Asian Nations (Asean) bloc, HSBC added, up from 60 per cent seven years ago.

HSBC calculated the 400 per cent figure based on data collected in the first quarter of this year compared to the same period in 2022.

Asean’s durian exports have been growing … implying that durian may have – in a very literal sense – launched a thousand ships to sea to trade

HSBC

“Asean’s durian exports have been growing … implying that durian may have – in a very literal sense – launched a thousand ships to sea to trade,” the report said.

“The Regional Comprehensive Economic Partnership gives everyone freer and equal access to the Chinese market.”

The 15-nation Regional Comprehensive Economic Partnership (RCEP) free-trade deal, which involves the Asean bloc plus China, Japan, South Korea, Australia and New Zealand, has accelerated the durian trade with lowers taxes and streamlined customs procedures since it took effect in most countries at the start of last year.

How China’s durian demand could leave bitter taste for some Asian countries

But RCEP alone probably does not explain a 400 per cent growth in demand, said Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered Bank.

Covid-19 containment measures in China last year may have created a low base for comparison, he added.

China imported around four times as many fresh durians last year than in 2017, racking up US$4 billion in revenue, Chinese customs data showed.

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Our reporter had never tried durian, so we sent her to sample everything at a durian buffet

Our reporter had never tried durian, so we sent her to sample everything at a durian buffet

Thailand commands 99 per cent of Asean’s durian export market, according to HSBC, although authorities in Vietnam are also in discussion with China.

And after Philippine President Ferdinand Marcos Jnr signed a deal on phytosanitary standards related to durian exports with President Xi Jinping during a state visit to Beijing in January, it exported its first durians to China in April.

Malaysia’s agriculture ministry is also seeking approval to export fresh durians to China, according to local media reports in June, with frozen durian already accepted.

Consumers in mainland China and Hong Kong are “willing to pay” for durian from Thailand as they have a longer shelf life compared to other parts of Southeast Asia, said Sam Sin, development director at S&F Produce Group in Hong Kong.

The expanding Chinese market provides a vast consumer base, allowing growers to increase their production and, in turn, their revenue

Sam Sin

“This upward trend is undoubtedly advantageous for Thai durian growers, as it presents them with unparalleled opportunities to expand their businesses,” Sin said.

“The expanding Chinese market provides a vast consumer base, allowing growers to increase their production and, in turn, their revenue.”



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